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Five lessons to survive the first five years in business.It's true, so many small businesses fail in their first years of operation. And it's also true that so many small business operators blame external influences on their demise. I know, I was almost one of them.15 years ago, when in my early years of business after growing from a zero base to a great little business I was faced with the best part of $500,000 in bad debts. And of course it was someone else's fault. How could this be, why me, what have I done to deserve this... well, given I am still standing, I figure it's my duty to tell you WHY I deserved it and what I did to rectify it.Five mistakes to $500k in a holeHere's what NOT to do in small business if you want to be a success. These are fundamental failures.I don't have time!This one is classic. I'm too busy to work on strategy, I have staff to hire or fire, stock to unpack, sell or send back, bills to pay, argue or delay, customers to serve, tax to pay and struggle to the end of day.If you can't find the time to work on the strategy of your business then you have no business, you have a job, and a bad one at that, as it probably pays you less than if you worked for someone else. So find the time to figure it out or find the time to get out. Which leads me to my next rule...Know what you want to be when you grow upToo often in small business we get up each day, day in day out and do the same thing we did yesterday in the hope that it will all get better, all the time not really knowing where we are going and why. If you don't have a vision for your life and your business then you have no chance to work out what you are doing each day and why you are doing it.There are a few levels to consider here in order for you to work out where you are going.Can I ask you?It's a fact, small business people are in general too proud to ask questions of their peers. Very dangerous! There is a fine line between confidence and arrogance. Confidence is when you feel good enough about yourself to be humble and ask the questions you need in order to get you to the next level in business. Arrogance is when you feel you already know it. What do you want to be known for?You know, I hear you, but it's different for meThis one is a big killer, small business people all over the world think that 'it's different for me in my area / business / category / city / position in life / system in business etc etc'.... well I'm here to tell you... it's not different for you. Your customers, all customers around the planet all want the same thing, they want:1. Quality - give them a good quality product.2. Service - this is not a USP any more, it's a given.3. Relationship - they want to trust you and know you.4. Ease - don't make it hard for them, they do not have time.5. Value - if you have the other attributes in your transaction, they will have the perception of value. It's not about money, it's about positioning.Master, mentor, manager, mate.Small business people are typically bad leaders, I know I was. For so many years I just stood up in front of the team and said, 'Come on were going this way, get on the bus or get off I don't care'. In the real world, to be a good leader you need to be a mix of a number of personality traits.The master: the person that everyone looks up to as the true visionary, and not just your vision, but a vision for all.The mentor: in order for them to follow, you need to learn what to learn, while you teach.The manager: once inspired there will still need to be an element of management of process and system that you'll need to execute the vision. But first ensure you manage yourself. They will follow your discipline.Last but not least, you need to have compassion and show that you can be a mate when asked, or when you feel it's appropriate.Without all of these traits you're not leading your people, you are threatening them to follow you.So, if you know these are the things that stop you from being a solid small business person then what are the drivers you can follow?The 5 strategies to successSo, you've worked out and identified the things that will stop you from being great, so what are the things that will drive your business to the next level?As business people we know that there are some key things that drive your business.1. Strategy2. Human relation3. Finance4. Marketing5. OperationsBut how do you apply these things to your business with purpose and avoid the usual rhetoric paragraphs of words that attach themselves to these terms. Well, here's a start, simply follow these rules in relation to the 5 key drivers.Deep and DeliberateToo often a small business's strategy is scattered and unfocussed, largely because the principal is also scattered and unfocussed. And if you are scattered and unfocussed, you can be sure that your customers will be feeling the same way about what it is you are offering them, and that's bound to get in the road of them making an easy purchasing decision.Right people on the busSmall business owners often forget that one of the greatest assets they have is their staff. These days, it's not good enough just to pay your staff to turn up to work each day. They need understanding and clarity of your vision and incentive to give them motivation to help you drive the business towards that vision, and a reason to go the extra mile for you and your business.Take the time to find out if you have the right people on your bus and they are all clear on the direction the bus is heading.First what then howYou've heard the saying cash is king in business. And that's true, in part. But what is more important is planning for what you need the cash for.Small business owners are, often times, too disorganized when they seek funding in their business. They go to financiers or bankers cap in hand and with the expectations they will need to beg, when the real answer lies in being organized.First, what do you want the money for, then how are you going to get it.Perception is realityI can recall a story from my first business, some 20 years ago, a recording studio. A few months after we opened I was having a beer with an early business mentor of mine (and great family friend) Graham Hogg. Graham was one of the founders of a large Real Estate Group, and a smart guy.I walked into his house one afternoon after work, and his comment to me was, 'Did you have the day off today?'. 'No', I replied, 'I've been at the studio since 5am'. He said, 'So how's business?' My reply, 'Not so great, it's hard work'. And he said, 'Then why don't you get serious about it'... Now, I had been working about 100 hours a week for the last 6 months and I thought to myself, geez, how much more serious do I need to get....He continued, 'You're dressed in jeans and a t-shirt, and I don't care that you're supposed to be in rock and roll, you don't LOOK like you want my business. Get dressed, get serious, perception is reality, give me the perception you are going to take my money off me, and that I can trust you when you've done that, and that you WILL deliver on the business promise you are making me'.Change or dieThis is the last piece in a puzzle and the most important thing you can learn from this chapter. If there is nothing else surer in business it's that business changes every day of the year, and if we as small business people fail to change with it, then our business will surely die.Surviving in business is tough, it takes diligence, courage, enthusiasm, confidence and most of all vision and focus. Good luck with the long haul! Article Tags: Small Business People, Long Haul, Small Business, Business People