Perhaps the greatest misconception about running a small business lies in the idea that it is somehow an easier thing to do than run a major conglomerate. Sure, the numbers in question (funds, goods and staff) are greater when it comes to the latter; however, as a conglomerate, you have so much administrative help on every level, from team leaders to your company’s senior management, to help you out. As an SMB, you’re on your own most of the time. So, if we get this myth out of the way, you might want to try applying a management model similar to those used by top-dogs in the industry (those that are proven to work). That being said, here are five big suggestions that can easily be applied to your small business.
Focus on talent retention
When it comes to the issue of your staff, most companies put so much focus on the issue of talent attraction that they completely forget about the importance of retaining the workforce they already have. Think about it, there are two types of people that are bound to leave your company: those dissatisfied with their job and those who have a better offer elsewhere. The latter group usually consist of the most productive employees on your team. In fact, they might be the ones keeping your company’s productivity afloat. All in all, this means that you simply can’t afford to allow them to leave. Instead, you need to motivate them in any way you can come up with and persuade them to stay, be it through a raise, a promotion or a handwritten thank you note every now and then.
Look for tax deductions
Another mistake that a lot of small companies make is ignoring the fact that they might be eligible for all kinds of tax deductions. In a situation where every single dollar counts, this can be a massive oversight on their part, as well as one that simply can’t be allowed to happen. For instance, people running a home-based SMB can ask for a deduction based on the fact that a part of their utility bill is used as a business expense.
For instance, if 10 percent of your home is used as a home office, you can use this fact to deduct 10 percent of your utility bill. Still, this might not always be possible and in order to stay informed about these things, you need to have someone well-versed in the tax laws of your state. So, in a situation where your SMB is NSW-based, you might want to look for a tax accountant Sydney agency, rather than outsource to a company from Melbourne or Gold Coast.
Automation is a boost to your workforce
With an adequate HR tool, a single HR representative can do the work of the entire department. Same goes for fields such as IT and digital marketing. In other words, by using all the latest tools and devices to your advantage, you might be able to reach peak productivity without having to hire more people. When it comes to the issue of customer service, the difference is even more noticeable, due to the fact that more and more companies decide to work with chatbots.
Don’t be afraid to outsource
Finally, as an SMB and especially as a one-person startup, outsourcing will sometimes be your only choice. Nevertheless, assuming that outsourcing is only good as a short-term solution is outright ridiculous. Needless to say, even some of the world’s greatest conglomerates outsource certain tasks because they deem it is the most cost-effective course of action.
At the end of the day, by sticking to these five simple tips, you will be able to ensure much steadier growth for your SMB, as well as create a more scalable business model. While it is true that you can’t apply all the business practices of major corporations, learning by example is usually an efficient didactic method.