Starting a local business is an aspiration that many people have, but only a relative few will actually follow through with. That’s because the vast majority of aspiring entrepreneurs simply don’t have the skills, knowledge, or perseverance needed to succeed in the world of business, yet still they try. There’s nothing wrong with doing your best with what you have, but when you’re putting the reputation of a local business on the line, it’s best to avoid the “fake it until you make it” approach altogether. Instead, you should try to give yourself the best chances of succeeding by taking the steps necessary to become an educated and well-rounded company manager before you open for business.
1. Managing Operations Can Be More Difficult Than Expected
You might have a comprehensive business plan laid out that seems like it takes every possible step into account, but once you open for business, you’ll find that there are often surprise problems and processes that you weren’t prepared for. Earning a Masters in supply chain management online degree would be one example of an educational effort that could improve your ability to manage the operations of booming local retail business. This is something that you could do in your spare time and on your own schedule to tangibly improve your odds of success as an offline entrepreneur.
2. Investors Want to See Credentials
If you really want your business to succeed on a high level and eventually become a national chain, it would help to have investors and wealthy business partners in your corner. However, those types of individuals prefer to deal with professionals who can show impressive portfolios that include extensive education or experience in the industry. In their mind, they have no reason to work with you other than your expertise, because they don’t need any financial partnership from you. By starting out as a credentialed business owner, you give yourself the advantage of becoming an appealing candidate for investors who want to make entry into your niche or industry.
3. Licensing and Certification Requirements
Most online businesses can be set up in a single day with nothing more than a web hosting plan, content management system, a web design template, and a bit of effort related to marketing and content creation. Offline endeavors aren’t so easy to just spring up and try your hand at. Most local businesses will need to obtain various kinds of certification, licensing, or insurance coverage in order to stay in compliance with local laws and regulations. By having a degree that is relevant to business administration, you should have an overarching knowledge of how to proceed in conducting the necessary due diligence to ensure that you don’t overlook any crucial operating requirement. Facing an unexpected problem in this department as an unprepared or under-educated individual will put you in the position of facing steep fines and fees that could potentially bankrupt your company and leave your local business reputation tainted.
4. Education Prepares You to Lead Confidently
Confident leadership is an important factor that contributes to success in most business endeavors. Conversely, a lack of confidence can show in your business dealings and may prevent you from exuding the kind of personality or decision-making prowess that is required to become a true shark in your industry. To really come out of the gates running and outdo the competition in every regard, you need to be prepared with a diverse set of skills and the information needed to set down an ideal path and follow through on it. In essence, before you set up shop as a local business owner, you should confidently know what you’re doing, exactly how you’re going to do it, and when it needs to be done. Any surprise guesswork that you encounter will only increase your chances of failure.
5. Savvy Consumers Can Sense Whether You’re Inexperienced
You might be able to fool some people into believing you’re an experienced or reputable business, but savvy consumers can tell when they’re dealing with a mom-and-pop shop that just opened its doors. If you really want to create an impression that says your brand is trustworthy and portrays the utmost professionalism, it’s best to have your location managed by someone who has the experience needed to create that kind of perception in the public eye.
6. Maintaining the Integrity of Corporate Leader Profiles
Think about how prestigious the profiles of most corporate leaders are, and then try to imagine reading an overview of a Fortune 500 company who doesn’t have some sort of degree or professional background. It’s almost unthinkable to imagine someone reaching that level of success without a single notable credential, so you can’t reliably expect your local business to become the best in its area if you don’t have something that speaks for your integrity as a leader.
7. Less Likely to Face Unnecessary Risks and Liabilities
Finally, another straightforward reason why every local business should be managed by a credentialed professional if possible is because they will be better equipped to mitigate or eliminate various kinds of common risks and liabilities.
You Can’t Always Immediately Re-Open a Brick and Mortar Business
It’s common to see gurus and inspirational quotes telling you that it is okay to fail and that failure is a part of success. However, the standards are a bit higher when you open for business as a physical location because you have to meet all of the operating expenses that come with it, otherwise you go out of business. If you’re an online entrepreneur who is popping up websites and trying their hand in various niches, you can afford to fail because you’ll only be losing the effort and funds that you invested. As an offline company owner, your local business reputation is at stake and you have a lot of expenses to keep up with, so there’s a very low tolerance for failure. That conclusion, along with the reasons listed above, is why local businesses should be managed by experienced and/or credentialed professionals.