Even those who now own entire corporations and empires began with small businesses. Thomas Lipton started his business with a small grocery store. The founder of the worldwide Subway fast food chain began with the opening of a small eatery, Maurice Mishtom, founder of the Teddy Bear brand, was selling homemade toys together with his wife until he became famous and rich.
If a business is small, it does not mean that it is easy to manage. Quite the contrary. In a large and developed business, much has been established, and it works according to a proven scheme. A small mistake in big business can have almost no effect on the course of events. However, a small mistake in a small business can ruin everything.
It is rather difficult to describe all the features and subtleties of managing a small business in one article, but we will try to highlight the most important thing and those who are just thinking about starting a business will be able to understand the big picture of which management approach to use.
Features of Small Business Management
Excellent knowledge of the field of activity
A small business entrepreneur should be well oriented in the market, understand the specifics of her industry and know the specifics of his field of activity. Of course, the head of a large company should know all this.
However, in a small business a clear understanding of what you are doing is especially important if you want to turn from a small businessperson into a large one.
When the head of a large company makes a decision (and more often decisions are made not even by one person, but by a whole council), a large number of people are involved in this process. That is, you first need to notify all the deputies, they, in turn, give instructions to managers, and so on along the chain and managers, unfortunately, do not always understand how their instructions can be really feasible for employees and if there are any difficulties, the interaction along the chain begins again, only in the reverse order.
In small business, everything is much simpler. The business owner wanted to introduce any innovation into the business – he approached his employee and assigned him a task. In case of difficulties, all issues are also solved much faster, if only because a much smaller number of people take part in this process.
Greater freedom in decision-making
In a small business entrepreneur can do whatever she wants (within the law, of course). If you again compare with big business, then there every important decision needs to be coordinated with its partners, co-founders, managers who are subtle specialists in this matter and it may well turn out that what the businessperson intended will not be necessary or wrong for the company.
In a small business, an entrepreneur has practically no people who can prevent him in time from making a mistake. Therefore, each decision needs to be made only after a thousand thoughts about it.
Lack of interaction formalities
In a small business cannot be involved a huge staff. Work teams can be of different sizes, but they are all relatively small. For example, take a small clothing store. A cashier, two sellers, a security guard, an accountant, a manager – that is the whole team. When people work in a small team, many of the formalities of business communication go to naught.
This is a good plus – with such friendly-free interaction, the level of trust in the team rises which results in work that is more productive. In addition, if employees value the team in which they work, they become more “more careful” about the work itself.
The need to deal with all management issues independently
In large business, hired managers are involved in management, each of whom is responsible for the area of work entrusted to him. Theoretically, for a small firm, you can hire an outside manager. However, in fact, business owners go for it extremely rarely, and independently manage.
This refers to the management of personnel; production, sales, marketing and so on and such entrepreneurs do very true, because only they know what their company should be.
A hired manager will never do his job with the same degree of courage and conviction as the business owner himself will. In addition, in order for employees to love their work, begin to appreciate the work they are doing and rallied around a common goal – you need to show them how, why and where the business is going and no one will do it better than its founder.
Use of outsourcing services
Outsourcing is a real catch for small businesses and all entrepreneurs should warmly thank the person who invented this kind of interaction between several companies. A small enterprise may lack the strength and resources to solve all the problems of a business in a quality and timely manner. For example, accounting.
Even the smallest business cannot do without it and in order to do it yourself, the entrepreneur may not have enough knowledge and time. It is also not profitable to hire an accountant – he will have to pay for an 8-hour working day, and his work tasks can be placed in much less time every day. Therefore, it is very profitable to give accounting obligations to an outsourcing company – you pay less, and the quality of work will be at a decent level (just carefully choose an outsourcing company for cooperation – after all, there can be unscrupulous people may among them).
In general, outsourcing can be given to virtually any areas of the company – the management of any process, technological development, employee accounting, and so on.
About the author
Melisa Marzett is a content writer who loves her work and has always wanted to become a writer.
Formerly, she was working as a journalist for a local newspaper in her hometown Phoenix, Arizona and her dream came true when she started writing working for http://www.smartessayrewriter.com/ and traveling.
Apart from work, she enjoys scuba diving. She cannot swim but she found it easy and fun being in Egypt and snorkeling.