Every business has a specific goal. Some business started to growth through public and it’s called public traded company. Some organization growth to make profit only for owner. There is some basic difference between mall business and large business. They have different business plan and business strategy for their goal.
Low Revenue and Profitability
Small business’s revenue is normally lower than the big companies. It doesn’t mean they have lower profit. Since it’s a small business, the administration expense is also lower than the larger company. Some established small-scale businesses keep costs lower than more leveraged businesses.
Very Few Employees
Small businesses hire fewer teams of employees than the larger companies. The smaller businesses are run completely by single individuals or with few employees. A larger small-scale business normally gets away with employing over or above 100 employees. Its depends on the business size.
Small Market size
Small-scale businesses have lower market are. They serve single communities, such as a convenience store in a rural area. Their targeted customer is also very few. This is a big reason to lower profitability.
Ownership and Taxes Benefits
Normally small business trying to form sole proprietorship or partnership business. This kind of business formation is very easy. These kinds of forms of organization deliver the greatest managerial control benefit for company owners. This kind of business formation minimizing the expense of business registration. The tax rate is also lower for this kind of forms of business. The self-employment tax or for sole proprietorship business, the tax rate is 15.3%, which consists of 12.4% for Social Security up to an annual income slab (more than which no tax applies) and 2.9% for Medicare with no income limit or ceiling.
Small scale business has fewer locations. That’s give the small business to control over the managerial control over the distributor or his agent. They have fewer stall to sale their product or services. Actually it’s very possible to run a business from home. More women are now working from home.
Every business has to face some problems or obstacles. Its normal behavior for smaller business or larger corporations. Small-business owners feel comfortable in handling business obstacles and finding workarounds when needed. They don’t consent setbacks to stop their goals.
Collaborative and Cooperative
Small-business owners actually know how to successfully delegate tasks to the employees within their organization. They also know how to form successful relationships with vendor or customer. This includes investors, partners, management, advisors, employees, vendors, lawyer, marketer, consultants and customers. This kind of job give them a lots of experience to the small business owners.
Proactive and Practical
Entrepreneurs are proactive by born. They can take immediate action for their business. They seek for opportunities to expand their company, such as employing services or marketing products that permit their business to do competition with larger business.
Technically Aware and Use of IT
Entrepreneur have to know the use of software, email, websites and smartphones. This makes their business easy. Through this technical advancement they can run a small business more efficiently and effectively. Successful small-business proprietors like to use technology solutions that can save their time and money.
Self-Reliant and confident
self-reliant persons are prefect for small scale business They try to work for themselves rather than other’s future. They don’t aspect to others to make their decisions. They make decisions on their own judgement and analysis.
Accessible and Available
Entrepreneurs needs to ensure that their products, services and knowledge are reachable to customers. Customers want their product or service as quickly as possible. If a they cannot deliver to the customers, they won’t achieve success.
Energetic and Active
Naturally, the responsibilities are greater when entrepreneur control a business. They must be willing and deliver to give an extra effort since it’s their own money and goals on the line.
Human v Personal
People like to buy from the owner. They have a big confidence on the product owner. That’s why You can be human with your clienteles, personally communicating them and resolving all their questions.
Build a Great Customer Relationships
Individual relationships with customers and loving for those relationships can bring success for your small business. This will build a loyal client base that will grow your business over the year. Small business owners have the opportunity to know each of their customers personally and to form a strong relationship with them so that they can coming back time after time.
Know Their Customers Well
Small business owners know their customers’ choice perfectly. That’s why when a customer come to a retail store owners or fashion designer, small business owner can assume their choice and expense limit. inventory cost is also lower for small business owners. Whether its big or small business, business brands can only grow in deeply when they get to know their customers personally.
Own Their Mistakes and Learn from Them for Future Success
Every business makes mistakes. It’s human nature. It’s very normal; in business. But successful business owners own their mistakes. They learn from their mistakes and make positive decision to move forward. A negative word from mouth is the easiest way to destroy your business.
Adaption to Change Quickly
All things are constantly change. Adaptability is principle to successful business. The best of business progress and grow. This is a general business landscape and the changes in their industry. This is a smartest thing you can do if it gives you a good return of your efforts.