Over the years I have run my own solo small business, I’ve worked for large corporations and I’ve built a family business that sits somewhere in between. What I have observed along the way is that larger businesses have many aspects that contribute to the effective management and growth of their organisation. Many of those aspects can benefit even the smallest of businesses. Like yours!
The size of the business really doesn’t matter when it comes down to how effectively we can run it. Larger corporations may be more complex with many staff members and systems, but the fundamental ways in which they run things can very easily be applied to a small business.
Larger companies are always focused on continuous improvement, how they can be better, right across the board. They don’t let anything stagnate; review, improve and revise is a common philosophy.
Take a look at the following areas, how can you improve your small business?
1. Vison, Purpose, Mission
Most successful companies know just WHY they are in business (think Apple, Whole Foods etc). They know their purpose and they share that right throughout the organisation. Do you understand your Why? Your passion? What it is that drives you to do what you do every day?
Larger companies also have a very clear vision. They know where it is they want to go, what the goals are, and just how they are going to get there. Even smaller goals have their own vision and mission, it is a way of mapping the road we need to navigate to achieve what we set out to.
2. Strong Inner Circle
We can achieve things alone, it has been done before and it will be again. However, having a strong inner circle is akin to having your own board of directors. A number of different people, with different skill sets and the same goals can contribute significantly to the likelihood of success. Do you have a strong Inner Circle? If not, I can’t recommend enough the benefits that will come from establishing one.
3. Have a Mentor
This is one area I wish I had discovered earlier in my professional life.
It was when I began working for a large organisation back in the mid-nineties that I really discovered the benefits a mentor can bring. It can be transformational to your business or career. For at least a decade I have been both a mentor and a mentee. I have mentors from my personal life, people who run successful businesses and are invested in seeing me do well. I also pay for a professional mentor who has strengths in areas I want to grow. I have mentored junior colleagues and business owners for a number of years, I am now a mentor with the Australian Institute of Management and our own HerBusiness. If you don’t have a mentor, I highly recommend that you do. The knowledge and insight they can share with you will save you untold effort and challenges.
4. Dynamic Business Plan
Most successful organisations have constant meetings to discuss how they are doing in regards to targets, goals and achievements. They have a plan and it is regularly reviewed, revised and updated.
You do have a business plan, right? It isn’t hidden away somewhere collecting dust? Circumstances change constantly, these changes will impact your business plan. When you update your plan constantly, you are more likely to stay on the path to success. It’s interesting how often someone will show me a business plan only to realise that most of the information in it doesn’t apply anymore.
5. Systems
The organisations I have worked for, and my own business, are very well systemised. It makes an enormous difference to running any sort of business, no matter how small or large. If something is worth doing twice then it deserves to have a procedure in place to ensure it is done in the same, streamlined manner. Doing the same tasks differently, with no system in place only leads to chaos and confusion. Systems don’t need to be complex for a small business, they just need to be clear.
6. Know Your Finances
This should go without saying, but many small business owners are not fully aware of their own financial situation. It is imperative that you know what comes in, what goes out, how much is owing and what the financial cycle is of your product or service. Many small businesses fail when they actually have upcoming work, they simply can’t afford to stay in business until it eventuates. Know your income and expenses inside out and make sure they are working together to sustain your business.
7. Professional Development
This should be a focus of any organisation, whether it is run by one person or hundreds. Times change constantly, knowledge really is power. If you’re your own small business you should be aware of the areas in which you are lacking and take the steps necessary to fill those gaps. If you manage a team then it’s imperative that you share the knowledge, empower others by building their skill sets and do whatever it takes to continually improve.
