The general rule is that if a business can survive the first two years it is on the path to success. All businesses go through a variety cycles, especially during the first two critical years. During that time, the business will experience times when client traffic and profits will be up and down at various times, until they reach a point of stability. The business owner may also experience a variety of emotions during those cycles, from euphoria when the business goes well to panic when it does not. A service oriented business that depends on repeat visits and client referrals for continued growth will experience some ebb and flows that may be influenced by weather, season or other factors beyond the business owner’s control. Over time the business can predict when these cycles will occur and prepare for them. However, at the outset, these cycles may negatively affect revenues and profits. This is when careful financial preparation is essential, to carry the business through periods when client traffic is reduced and revenues are down.

Established businesses appear to run themselves but they do so because their staff is well trained and organized. The success of any business depends on the competency of its staff, which affects everything from client interaction to when insurance is filed and receipts are processed. Staff education and training are important to consistent and efficient business operations. An employee manual, describing operations, administration and procedures is something that many small business owners fail to implement, to their staff’s detriment. An office staff that knows what is expected of them, with clearly defined roles and procedures, will be more comfortable with and knowledgeable about their duties and this will help the office operate more efficiently.

The business and marketing plan will be useful as a benchmark of performance during regular performance reviews. Are revenues growing as planned? Is marketing on track and generating expected results? Are staffing levels adequate? All of these issues are described in the business plan, which can be referred to on a regular basis to ensure that the business is performing as expected. While the business and marketing plans represent a ‘best guess’, they will be useful in determining what to do next in times of crisis or unexpected success. Having more clients than expected may seem like a blessing but it can be an administrative nightmare. If, for example, your business is staffed to process thirty clients a day and you suddenly have fifty, the strain will be apparent on every aspect of the business. It is important to be as prepared for the possibility of being wildly successful, as it is to be prepared for the down times.

Customer service is what clients respond to, no matter what kind of other benefits you offer them. The business world is highly competitive and there are any number of businesses that offer the same kind of treatment modality, therapy or products that your business does. Whatever you can do to differentiate yourself from the competition has less to do with ‘what’ you do than ‘how’ you do it. Clients will notice everything about your office and operations from the moment they walk through the door. The cleanliness, order, ambience and décor all determine how they feel before they even see the practitioner. These first impressions are lasting ones and don’t require huge outlays of cash.

A simply decorated office that is clean and well organized, with happy, efficient, smiling staff does more to set the client’s mood and than an expensive decorating scheme. Your clients will remember less about what you did during their treatment than how your staff treated them. In any competitive business environment, service is an important competitive factor. Strive to give your clients the best service that you can and they will reward you with their business and referrals.

How the business will perform over time is the best indicator of success. Unfortunately, that takes time to determine. At the outset of the business, each day is important but success cannot be assessed one day at a time. Instead of making judgments about the business’ chance of success after one day’s receipts, look at the first week, two weeks and then the first month. Compare receipts by month, noting the cycles in traffic and revenues.

Resist the urge to panic and consider quitting when things do not go well because every business goes through cycles when revenues will ebb and flow. Careful planning will ensure that the ebbs, the down times, will not close the business. When times are bad—or good—remind yourself why you wanted to start the business. And remember that above all, it is the level of customer service, how you and your staff treat your clients, operations and your level of service, that will ensure that they return and refer your business. A holistic business can be extremely rewarding and successful as long as it is run with the care and attention that any business deserves.

This article completes Jennifer's series and we hope you enjoyed it.

© Jennifer Hoffman, 2005