When you are a small business owner, you usually start by doing everything by yourself. There’s no one to tell you whether your business decisions are making a difference. You have lots of customers, and you’re making money. Your staff seems happy to come to work, and you are feeling very positive. However, are you successful? International researchers who have studied many small businesses have found that these eight characteristics consistently play a part in the success of small companies:
- Owners leading by example
- Having a simple business structure
- Information sharing among employees
- Carefully selected staff
- Staff commitment and loyalty
- A unique product or service
- A specific customer focus
- Prompt followup
1. Owners leading by example
Small business owners lead by example. They are usually the first to arrive, the last to leave. Successful owners know everyone by name and enjoy being among their customers and employees. They show a firm commitment, setting the standard where they work that should be easy to understand. After all, if they don’t work hard in their own company, how can they expect anyone else to take their business seriously?
2. Simple business structure
Successful business owners operate an open and straightforward business structure, encouraging easy access to the owners for every employee. They value the contribution of each employee, many of whom take the opportunity to influence aspects of the business.
3. Information sharing among employees
Staff receive information as soon as the owner does. Everyone discusses goals, problems and concerns openly. Staff provide feedback and contribute their ideas for making improvements and overcoming difficulties. It is often this aspect of open communication that staff appreciate the most; after all, it is unique to small businesses.
4. Staff are carefully chosen
Business owners recruit staff carefully because they know their employees are the lifeblood of any small business. Owners hire people who will be beneficial to the organization based on their knowledge, skills, and abilities. Once hired, owners nurture and train them so that both the staff member and the organization get the maximum benefit possible.
5. Staff commitment and loyalty
Owners hire committed and loyal people. Owners reward excellent performance with praise, extra responsibility, and money—poor performance is not. Consistently poor workers are removed as they upset the rest of the team. Organizations whose staff show optimum commitment and loyalty have a source of competitive advantage that is hard to copy or to beat.
6. A unique product or service
Most successful businesses have unique products or services, such as designs, products, systems or some other aspect which sets them apart. This uniqueness is an essential source of success and one which many companies work hard to sustain. As their competition catches up to them, successful business owners adapt and innovate their products or services.
7. A specific customer focus
Successful small businesses focus on their customers and clients and work at supplying them with exactly what they want. This focus means adopting a market-led approach. Owners and their managers consistently look for ways to solve their customer’s problems and improve their products to match their customer’s requirements.
8. Prompt follow-up
On occasions when enquiries and complaints are received, successful small business owners actively follow up and deal with them as quickly as possible. The results are promptly reported back to the client or customer. As for complaints, they put measures in place to reduce the likelihood of similar issues reoccurring. Successful small businesses view complaints and problems as opportunities for growth and improvement in their businesses.
