Managing the Growth of a Small Business

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Making a great fortune out of a small business needs commitment and hard work. That is what many people would tell you if you sought their take on the subject of small business success. This may be true, to an extent, but it needs something even simpler, just working smart. To grow a small business, you only need to plan your business’ growth, analyzing any potential problems that may stand on your way, as well as understanding your business’ strength or weakness in detail.

Categorizing the problems and growth patterns of small businesses in a systematic way that is useful to entrepreneurs seems at first glance a hopeless task. Small businesses vary widely in size and capacity for growth. They are characterized by independence of action, differing organizational structures, and varied management styles.

Yet on closer scrutiny, it becomes apparent that they experience common problems arising at similar stages in their development. These points of similarity can be organized into a framework that increases our understanding of the nature, characteristics, and problems of businesses ranging from a corner dry cleaning establishment with two or three minimum-wage employees to a $20-million-a-year computer software company experiencing a 40% annual rate of growth.

For owners and managers of small businesses, such an understanding can aid in assessing current challenges; for example, the need to upgrade an existing computer system or to hire and train second-level managers to maintain planned growth.

It can help in anticipating the key requirements at various points—e.g., the inordinate time commitment for owners during the start-up period and the need for delegation and changes in their managerial roles when companies become larger and more complex.

Sourced from: https://hbr.org/1983/05/the-five-stages-of-small-business-growth

Making a small business succeed is way too easy than it may be perceived. The only problem is that many small business owners make simple mistakes along the way that make them stumble and make the whole process seem a daunting task to work through up the ladder. However, all you need to make any small business a success is team work, goal setting and just ensure you win the customers easily to your side. Here is how you can have it done.

Networking

“People just need to talk to each other”

Small business owners suggest that networking with other owners and having a “professional team” are essential to the continuing success of a business. Having and utilizing fellow business people as contacts helps a manager to stay abreast of industry happenings and changes. A professional team composed of the banker, lawyer, insurance agent, and accountant is crucial to the continued profitability of the business.

Sell Service, Give Away Product

“Neighbors sell neighbors”

In today’s society, it is the entrepreneur’s job to “sell their service and give away their product.” This philosophy can be accomplished with honesty and by “going the extra mile.” Honesty is good customer service. It is the commitment to tell the truth about the products sold and services available and to deal fairly with the public (Mariotti). Being up front about the products’ drawbacks and benefits is good business.

Goals/Prioritizing

“Have fun on the way to the goal”

In order for a small business to be successful, the management must have goals with the following characteristics:

Specific and timed: for example, increase sales by 20 percent in the next year.

Measurable: comparing this year’s sales to last year’s sales is a good measuring tool.

Attainable: “The ability to see the results of your goals while working to achieve them (Mariotti).

Rewarding: if the goal is not rewarding to the owners or employees, then there is no incentive to reach it.

Written down: goals that are written down are achieved nine times faster than those that are not.

Sourced from: http://extension.psu.edu/business/farm/management/new-business-development/topics/top-10-secrets-for-small-business-success

Running a small business may seem as a futile venture, but this is one of the most thrilling engagements one can ever undertake in the business environment. A small business is advantageous in many ways, from assured customer satisfaction, flexibility, personalized customer services, there is so much you can do better with a small business that by far out-way the large business venture.

The Personal Satisfaction

If you really want to do your own thing, be your own boss and lead your own charge, then by all means do it. But, be prepared to do business with all the assets you will need in today’s world. The personal satisfaction that comes from succeeding as your own boss is priceless and worth working for. Here’s a 30 point startup checklist for starting a business.

Flexibility with Changing Conditions

Small business operators have way more flexibility to make swift, immediate and necessary changes that are essential to dealing with shifting conditions. They’re at the top. The ability to respond quickly to market changes is a big asset you have and can use to stay ahead.

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Personalized Customer Service

Most successful small businesses take the opportunity to deliver personalized, unexpected and exceptional customer service very seriously.

They usually serve a smaller area and can really get to know their customers’ needs, wants and history. Developing long term, ongoing relationships is one of the benefits that can keep customers coming back perhaps through more than one generation.

There is something very comforting and trust building about serving mothers, fathers, sisters and brothers of the same family. Small businesses can make these kinds of business relationships happen.

Sourced from: http://smallbiztrends.com/2015/05/advantages-of-being-a-small-business.html