Small business management
There is no universal way to determine how big a small business should be. However if your business has not invited for capital from the public, I would simply consider it to be small. On the other hand, I am not ignoring the fact that they are businesses that are large enough to be considered as big businesses. A simple definition of a small business would therefore be any business venture that the investor does not want it to be so large such that he/she relinquishes control of it to external parties. This means that factors such as capital invested, number of employees and the expected returns form a basis for determination of a small business.
We are considering a business where you have total control and whose single coin goes to your pocket. The first thing that you have to put in mind is that your sole purpose is to make profit. But you have to allow your business to grow old enough to begin producing some returns. I was once involved in the production of a local magazine. Our advisor told us that we should not expect any profits from the magazine till the 4th issue. This sounded absurd, but after we had produced the third issue, there were signs for some profits.
Secondly, you need to meet your customers’ needs. A business that does not put its clients first will die as soon as it came to being. You must know that the customer is the most important individual in your business and your business exits because of him/her. A satisfied customer will tell one or two of his/her friends. On the other hand, a dissatisfied customer will tell a least five of her friends about your poor services. Do not forget that customer needs include how you handle them.
Management of funds comes next. To increase your profits, you have two strategies at hand; either increase sales or cut down costs. Decide which one is best for your business. Nevertheless, the first strategy shows that your business is growing.
Tags: business venture, dissatisfied customer, external parties, small business management, universal way