Commitment, flexibility, adaptability, motivation, initiative, hard work, common sense, good judgment, strategic planning, people skills, and analytical skills are some of the characteristics which describe a successful entrepreneur. In addition, it takes time and patience, and trial and error to become successful.

I have been in the food service business for the past twelve years, managing small businesses such as vending machine operations, snack bars and gift shops. I started my own vending machine business about two years ago. I sell snacks and beverages via vending machines to office employees in downtown Chicago. Based upon my years of experience, I offer the following suggestions.

Business Plan

Write a business plan. The act of writing it down forces you to think it all through. Revise your plan as your business changes.

Products

Know your products and where to get them with good quality and reasonable prices. Attend trade shows in your industry to keep up with the latest products and innovations. Meet with your sales representatives regularly who will introduce you to new product lines. Check out the stores and observe what people are buying. Pay attention to TV and radio ads for similar products.

Know your competition and figure out ways to beat them.

Customer Service

Greet your customers and get to know them. Learn their names and engage in chit chat. This is especially true for repeat customers.

Marketing

Get a web site. This is essential in today's web environment. If your budget permits, try other forms of advertising such as local newspapers and the yellow pages. Word of mouth is your best advertising. One satisfied customer will tell ten other potential customers.

Accounting

Make sure you have a good accountant. A good one is worth every penny you will pay him or her. Don't try to do it your self. There are so many taxes and fees which must be paid to local, state and the federal government. There are deadlines and penalties are charged for late filings.

Employee Relations

Choose the right employees for the job. The best employees are those referred by others particularly other people in your industry. Interview the applicants and ask about their experience. Applicants without experience can be trained. Employees must be hard working, reliable and committed to the job. Try to look for these characteristics in the job applicant.

Once you hire the employee, make certain that he or she knows what is expected. Give them written job descriptions, work schedules and rules and regulations which they must follow. Have them sign off on these.

Treat all your employees equally. Do not show any favoritism to anyone.

Have a firm disciplinary procedure and make sure your employees know it. Give a copy of it to your employee to sign and keep a copy in his or her file. Document any infractions of your policies by your employees. Put it in writing and get them to sign it. If they refuse to sign, note this on the document.

Firing employees is one of the hardest things you will have to do. It doesn't get any easier no matter how many times you do it. Your decision to fire should be documented by the paper trail of the written infractions.

Profit and Loss Accountability

Make certain you know the gross profit and cost of goods percentages for your industry. Do not under or over purchase. Take inventory at least twice a year. This will help you to know your true GP and COG percentages and will help you detect stealing by your employees. Do routine cost analysis and GP projections.

Murphy's Law

If it can go wrong, it will and often times it all goes wrong at once. Expect this and be prepared for it. Have back up plans. Set priorities. Don't focus on the problem, focus on the solution.

Resources

For help on any of the issues discussed above, contact your local U. S. Small Business Administration office, your local chamber of commerce or your local municipality.