News You Can use: Keys to Starting a Successful Business

University of Mississippi experts share advice for those interested in being their own bosses

by Edwin Smith

Of the thousands of businesses launched every year, a large percentage fail within the first couple of years. However, aspiring entrepreneurs can dramatically improve their odds for success by following some fundamental steps, two University of Mississippi experts advise.

“A few absolute necessities that one must have when starting a business are financial literacy, passion, the ability to pivot and an understanding of their customer,” said Whitney Jackson, business counselor with the Mississippi SBDC Network‘s State Small Business Credit Initiative program. “Becoming an entrepreneur will require a lot of time, and your spouse, family, teachers or employers will have to understand that.”

But regardless of what industry one chooses or whether they are starting a business or expanding it, entrepreneurs may not necessarily need a ton of money for success, Jackson said.

“The best advantage for success is to have a minimum viable product,” she said. “A MVP will validate that you have customers, that you know what their needs and demands are and that you are solving that problem.

“An entrepreneur with an MVP is an entrepreneur who is budget-friendly, can access the market faster, has a competitive advantage and minimizes risk.”

A successful business plan includes an executive summary, market analysis, organizational structure, product descriptions, marketing and sales strategy, financial projections, and supporting documents, said Kendall Causey, also a consultant at the Resources for International Success and Expansion Center, operated by the Mississippi Small Business Development Center at Ole Miss.

“LivePlan is a helpful digital platform that can ease the stress of creating a business plan,” she said.

Essential elements include such things as a solid business plan, appropriate legal structure, sufficient funding, a digital presence and a clear operational plan, Causey said.

“Before launching a business, one must understand market demand, assess financial readiness, comply with legal requirements, develop a clear business model, and establish a strong digital presence,” she said. “Effective cash flow management, customer focus, adaptability, a strong digital strategy and scalability are crucial for small business success.

“In addition to that, one must be able to adapt to changes.”

Both Causey and Jackson said launching an enterprise requires creating a solid business plan.

“This requires an entrepreneur to understand their strengths and also reach out for help in areas that they are weak in,” Jackson said. “A strong team that listens to their customers can make a small business, and the attitude of ‘I can do it all myself,’ and ‘I know what the people want’ can break a small business.” 

Most successful businesses also have a strong brand presence online and their owners stay abreast of technological changes, said Causey, the center’s digital transformation specialist.

“This will help them advance and take things to the next level,” she said. “I understand that learning to use AI and other new digital tools can be scary, but once you dive deeper and find out how to utilize those tools for business growth, it is a game changer.”

Finally, patience is a key resource for success.

“It typically takes two to three years for a small business to become sustainable, with initial setup, growth and stabilization phases marking the journey,” Causey said. “However, it can vary from business to business.”

“When businesses hit five years in operation, that is a great achievement,” Jackson said.

For more information, contact the Mississippi Small Business Development Center or the RISE Center.