There are of course many reasons why so many small businesses fail each year in the United States. Most are based on either impulse or ignorance. We’re not talking here about being a franchisee of a major chain of stores or restaurants because these, for the most part, are professionally run and they have a proven formula. We’re discussing what is commonly referred to as a “mom and pop” or family operation. While it is clear that a franchisee has a much better chance of at least a modest success, it doesn’t mean that something that is individually-run can’t succeed. Many huge businesses today started out just this way. Ever hear of Wal Mart? These 9 small business tips should help:

1. The Product or Service.

The first thing you have to ask yourself is whether the product or service you are going to be selling has enough potential buyers. Is what you’re offering going to attract customers? Is the product or service unique or are there others across the country that are successful in this field? It isn’t enough to just “think” someone will be a customer. You need to do some real soul searching and basic research before you take any more steps. Also, an important factor is determining if your business can attract the same customers again and again, such as dry cleaners might. The repeat customer is the life blood of your operation.

2. Suppliers and Pricing.

Once you are set on your product or service you need to be sure you can get whatever you’re selling on a quick turnaround. If you start running out of something you will quickly lose customers. They are coming to you to buy and if you don’t have it they won’t be patient for long. It is too easy for them to go somewhere else. So inventory control is very important. Also, you want to be sure the vendor making your product(s) can maintain a high level of quality. And once you’re all set with products you’ll need to figure out your pricing. Normally the retail price is at least double the wholesale price. Will that give you an acceptable profit?

3. The Business Plan.

Speaking of profit, it is extremely important to have a business plan. Did you know that most small business don’t even have one? It is like sailing out to sea with no rudder for the boat. You will quickly become “direction-less” and it will lead to a financial shipwreck. If you have a business education or background you might be able to do the plan yourself. However, most people can’t so they get outside help. This is highly recommended. One source is to contact the Small Business Administration (SBA). They offer all kinds of services. Assuming you don’t have all the cash yourself, you will be applying for a loan of some kind. Any lending source will probably require a detailed business plan. This helps you anticipate expenses of all kinds and again, it is a must.

4. Location.

You’ve heard the phrase, “location, location, location.” Well, it is so true. In real estate “location” is everything. And it will be the same for you even if you don’t have an actual store. Let’s say you are planning on selling products online. Locations on search engines are critical. Keywords will hopefully direct customers to you. With regard to an actual store keep in mind that a franchisee has advantages in that the parent corporation knows how to pick locations. So you will need to be very careful when choosing your location. If it is a store you’re planning you’ll need to really scout an area. Get a realtor to help because, since you’re the buyer, it’s basically free. Then start asking questions such as: Will there be enough foot traffic? How many cars go by each hour? Do people have enough time to browse?

5. Competition.

And the pertinent questions continue. Who else is selling what you’ve got? If it is a store, how close are other similar stores? Do you have an area exclusive? What if a giant chain like Wal Mart comes in? Do you have, or can you create enough of a “niche” so that you can survive? With regard to the product or service itself, can someone else deliver the same thing for a cheaper cost or better quality, or maybe more features? You’ll need answers or your competitors will answer them for you and may not like it.

6. Marketing.

Surprisingly many people overlook marketing basics. They don’t understand advertising, promotion or publicity. I guarantee that once people find out you’re about to open for business, assuming you have a store, you will be flooded with vendors. Everyone has just the thing for you. The Yellow Pages, billboards, radio and TV ads, magazines, newspapers, coupons, and more. For one thing you will definitely need “signage.” This is an on-site sign, or in the case of the Internet, a webpage. Then you need to ask yourself, how do others effectively advertise? Not knowing your business, I can’t answer specifics but I can give you some general guidelines.

Direct marketing of some sort, e.g. coupon mailers, bill stuffers, etc. seem to work, along with Yellow Page ads. Billboards are fine but the production cost can be quite expensive and having only one or two boards may not do the job for you. Radio advertising can be fairly inexpensive and quick to do but if you aren’t serving a whole city, then it may be a waste of money. TV advertising is much more expensive to produce and to buy airtime. But your local cable system might be a good alternative. And what about “promotions” and special events? They can get you good visibility. Do you have any planned? Keep in mind that they are usually more labor-intensive than cost-intensive. And lastly, don’t forget about publicity.

Good PR is worth its weight in gold, as they say. And it’s free. By now perhaps your head is spinning with all these aspects. While marketing is very important, you don’t necessarily have to do it yourself. You might consider hiring a small advertising agency. Many will work for a small retainer fee or perhaps just take commissions from what media you buy. You’re probably talking about a “boutique agency,” which is fine and they can handle most if not all of your marketing needs.

7. Hiring, Firing and Paying.

If you’re going to be doing something exclusively online with only yourself to worry about you probably don’t have to pay that much attention to this item. Everyone else does. Hiring good workers is not easy. The key word is “good.” Will they be diligent, honest, cooperative, etc.? You can advertise the jobs yourself or go through staffing agencies. Perhaps the latter would be a better because they have at least done some screening for you. Keep in mind that hiring someone is unfortunately more of an art than a science. Be sure you have a trial period or otherwise you might be stuck with someone you really don’t want. And firing is not that easy these days. If you do find it necessary, you’ll need to have a paper trail or you’ll be involved in lawsuits. And, it can be a hassle figuring your payroll each week, with all the benefits, insurance, and taxes. Many outside companies are set up to do this for small businesses. Better them than you.

8. Planning for Slow Times.

Southern California is a great place to live – primarily because of the weather. It is sunny most of the time. And since almost everyone has a car, car washes have sprung up everywhere. They can be very profitable. But this past winter and spring something strange happened – it rained! And it rained a lot! We’re talking record amounts. This pattern went on for weeks. All the car washes were closed. Hopefully the owners planned for this because a lot of money was lost. The same holds true for any business. You need to plan for slow times. Most business plans recommend having up to 6 months of operating cash. Remember, the prudent attitude for running a business should be that anything can happen, and probably will.

9. Customer Service.

The importance of good customer service can’t be overstated. So much business is lost because of a snooty waiter, a gum-chewing cashier who is on the phone with a friend, a constantly busy phone line, an unfair return policy, and so the list goes. People today have more choices than ever. They aren’t being forced to patronize you. If they encounter problems they’ll move on and you’ll lose money. Customer service involves employees. They need to understand their importance and responsibilities. If you don’t effectively supervise, you’re the big loser.

Due to the myriad of unknowns in the marketplace there is no guarantee that your business will succeed. However, if you’ll use these nine suggestions as guidelines, you’ll have a much better chance for success. The Boy Scouts pride themselves on being prepared. So, become a good Scout. Prepare your business carefully. And, good luck!