It’s safe to say that all entrepreneurs want to run a successful business and that they want to grow their business. It’s also a safe assumption that entrepreneurs (current and aspiring) know that it takes a lot of hard work, time, and patience to become that successful business owner they aspire to be. It also takes specific resources at your disposal to get you on the right track to expanding your business. These resources will help you harness a good business opportunity when you see one. Here are five resources, known as the “5Ms,” that entrepreneurs need for a successful business.
1: Money
Money, also known as capital, is the most important resource any future business owner will need. According to the U.S. Small Business Administration (SBA), starting a business takes around $3,000— and that’s just the startup cost. Keep in mind that running a business requires several ongoing costs as well:
- Employee wages
- Maintenance and repairs
- Renting office/factory/warehouse space
- Supplies
- Utilities (electricity, heating and cooling, etc.)
Business insurance is another ongoing cost you will experience as a business owner. Just like you need health, life, car, and homeowners/renters insurance, you will need various insurances for your business. Examples include:
- Business income insurance
- Commercial auto insurance
- Commercial property insurance
- Data breach insurance
- General liability insurance
- Professional/product liability insurance
- Workers’ compensation insurance
Ongoing costs will be funded by the money your business makes from daily operations. Startup costs, on the other hand, need to be funded by a financier, such as a bank. This is why you write a business plan when you start a business— this details everything about your business, including the startup costs.
2: Method
The next “M” you’ll need to be a successful business owner is the proper methods (skills and knowledge) it takes to run a business. First and foremost, you should be knowledgeable in the business that you’re in, whether it is technology, personal care products, nutrition, etc.
Another method that all entrepreneurs should have at least is a working knowledge of different marketing methods. Social media marketing is one of the easiest marketing methods to learn in this day and age. This is because you’re likely already one of the nearly five billion social media users, so it will be easy to learn the basics of social media marketing. Other marketing methods that you should be aware of include:
- Affiliate marketing
- Content marketing
- Email marketing
- Inbound marketing
- Marketing automation
- Native advertising
- PPC (pay per click)
- SEO (search engine optimization) marketing
All of these are forms of digital marketing or marketing done online. Digital marketing, in general, is the most effective way to market your business. However, traditional forms of marketing can still be helpful to you— mainly if you serve your local community.
3: Materials
The materials needed to run a business will differ for every business owner. If you’re an e-commerce business, you’ll need fewer materials than a business operating in person, but you’ll still need boxes and other packaging supplies. If you operate in person, you’ll need basic materials like tables, chairs, and other furniture pieces, depending on your business type. Other office essentials you’ll need include:
- Filing cabinets
- Paper
- Pens and pencils
- Stapler and staples
Don’t forget the raw materials you may need, such as land for your building and warehouse, if you’re starting from the ground up. If the industry you’re in is in the agricultural or manufacturing industries, there are a variety of other raw materials you will need. As an entrepreneur, you will need to know how to acquire these materials before starting the business.
4: Man
Some small businesses (freelancers and those classified as sole proprietorships) can run smoothly without employees. Other business owners need to hire people to help run their business, which is why man is another essential resource entrepreneurs need. As a business owner, you’ll need to know how to recruit people to work for you, whether you use a job search site or a recruitment agency to help you.
You may also need the help of other businesses to help you run your business. B2B (business to business) companies exist to provide products and services to other businesses. When you outsource a portion of your business or hire another company to perform a task for your business, this counts as the workforce. Some parts of your business that you can outsource to another company include:
- Accounting functions
- Customer service
- Human resources (HR)
- IT (information technology)
- Manufacturing
- Sales and marketing
- Shipping and logistics
When it comes to outsourcing, even freelancers and sole proprietors can benefit from outsourcing certain parts of their business. All types of businesses can benefit from having skilled labor.
5: Machine
Machines are the last “M” that entrepreneurs need when running a successful business. Again, this can differ depending on your business type, but this includes any type of machinery needed to run your business. This includes cash registers/credit card processing machines, security systems, phones, printers/fax machines, computers, and other devices.
Another type of “machine” that all businesses can benefit from is business software. Software is a set of computer programs that perform specific tasks. Some examples of the most common software used by businesses include:
- Accounting, bookkeeping, and payroll software
- Communication software
- CRM (customer relationship management) software
- Database software
- Project management software
- Time tracking software
- Word processing programs
Another type of software that businesses need is some sort of cyber security software. Cyber security will protect your business from cyber threats and attacks affecting sensitive information regarding your business and your customers/clients. These cyber-attacks can also shut down business operations, but the security operations center (SOC) of your cyber security software can help protect your business. Visit Cyber Sainik at their Denver SOC for more information.
As you can see, there are many resources you’ll need to run a successful small business— even when they’re broken down into just five categories. All business owners need money, the proper methods, basic and raw materials, people, and machinery to run their business. In most cases, you can’t have one or two without the other four or three; gathering all of these resources takes time.
Just remember to do your research pertaining to your particular industry and be patient with yourself and your business. These resources can’t always be acquired at one time, so make sure to plan for all of these when writing up your business plan.
Finally, you’ll also need to invest in yourself to ensure you run a successful business. Make sure you’re always learning about the industry you’re in, whether through free online courses or even by enrolling in school. As the owner of a business and an entrepreneur in general, it’s essential to invest in yourself.
