Five Tips for Running a Successful Small Business

Running a successful small business requires that a company follow its business plan, establish priorities, offer the right product at the right price, market relentlessly, and stay in touch with customers.

These five tips to running a successful small business come from Jason and Rodney Carr, brothers who co-founded Softline Home Fashions in August 2001 and have overcome challenges at each stage of their business growth.

A month after they started business operations, the tragedy of September 11 struck the nation's economy.

During their second year of business, the Carrs got a large request for 900 stores that forced them to seek financing to service the order. Banks refused to look at them for a loan until they were in their third year of business so they temporarily turned to private factoring with 40% interest.

Recession struck in 2008, yet they kept growing their small business.

Softline Home Fashions now has 80 employees in its Gardena, California headquarters, a showroom on Fifth Avenue in Manhattan, one in Atlanta and facilities in Montreal, Canada. They've not had any layoffs and recently hired two strategic positions to bolster their infrastructure.

Now during the company's 10th anniversary, I asked them to share what has made it possible for them to reach this milestone.

Number One - Business Plan

"We followed our business plan," said Jason Carr. "Following your business plan is key."

For Softline Home Fashions that means offering decorative fabrics for homeowners, decorative pillows, and fabrics by the bolt. The core is providing polyester as an elegant alternative to silk and they don't deviate from it. Instead, they work to lead within their niche.

They strive to be "fashion forward," according to Rodney, taking risks in color and style. "We may have 30 colors of the same fabrics; a lot of deep palettes."

Number Two - Clear Priorities

"Establish priorities," said Rodney.

The brothers have complimentary skill sets: Jason, a former professional tennis player, oversees operations while Rodney focuses on sales. They'll bring in outside professionals with specific skill sets to handle mission-critical needs.

As business partners, they may have disagreements but "we always had the same goal in common," said Jason. They have never disagreed on the products and what constitutes their core business.

They also value each other's commitment to the business. "I trust Jason's decisions are 100% for the company," said Rodney, "and he has to trust the same for me."

Number Three - Product and Pricing

"Offering the right product at the right price is key to business success," said Jason. They have competed on both price and quality of the product they offer. Their fabrics are distributed in a variety of ways including mass merchandising outlets and independent retailers who stock the products for homeowners who want affordable fabrics with style.

"We brought in polyester when the world was using silk," said Jason, "and we put our name out there as a polyester company that sets trends."

Number Four - Constant Marketing

The Carrs have continually invested in marketing their brand and the fabrics they offer to show buyers that they're leaders in colors and styles. Even during the threats of a slowing economy, they continued a marketing plan that included full-page ads in trade magazines, investing in trade shows, and utilizing a public relations firm, Eileen Koch and Company in Los Angeles.

"We've never shrank our marketing dollars," said Rodney.

Number Five - Customer Service

During the early years, the Carrs kept close relationships with both customers and suppliers. After they introduce a fabric, Softline Home Fashions will offer it continuously and maintain it in stock for three years.

The company has started a Direct Import Program to give retailers the option of connecting directly with suppliers.

Currently, with price increases occurring around the globe the Carrs have worked to keep suppliers and customers in sync with each other.

"Today's rising prices is a crisis like a tornado," said Jason. "Most retailers don't understand what's happening."

Despite higher costs for supplies around the globe, the Carrs remain intent on leading by finding the next great design.

"We're always launching more new products than any other company," said Jason.

Today that includes natural fibers that are eco-friendly and energy efficient. They're looking to expand in markets in Central America and South America, too.

"The last two years have been extremely challenging," said Jason, "yet we're still pushing."

"We have energy, growth, and excitement in our company," said Rodney.

And they now have a 10-year-old track record to guide them as they enter their second decade.