In everyday conversations, when you ask somebody to describe what a business is, they likely paint a pretty picture that includes just that nice couple who own the corner book shop, or the dynamic freelance web developer who works out of their live/work space in the hip new part of town. Too often though, people don’t think to tell the whole story, and what many people don’t realize is that there’s a lot more to running a business than just having a product or service to sell. A lot of small businesses fail simply because they don’t understand or focus on the nuts and bolts of how business works.
Running a small business is like managing a large corporation in a lot of ways – there are just too many things to do, too much responsibility to carry, and too much detail to ever finish in a day. This is why there are so many successful small businesses compared to unsuccessful, large businesses. They make a conscious effort to manage their day according to the time available, and they stay on top of all the little details.
The biggest differences between small businesses and large businesses are usually related to overhead and employee numbers. With small businesses, the actual cost of starting the business can be extremely low, because most start-up expenses are supplied by the entrepreneur. This means that the business owner doesn’t have to set up a huge fleet of trucks, pay employees, rent office space, pay for marketing, advertising, or any number of other things necessary to start a large business. They simply need enough capital to hire the necessary staff, get the products they need from the suppliers they’ve selected, and get customers to order from them.
In terms of employee numbers, this can be pretty much any employee you want as long as they meet the company’s size standards. Many small businesses have no need to hire anyone extra, since they don’t typically grow very large. The few exceptions may be if a business hires consultants or salespeople or requires supervisors. In most cases, however, the number of employees you need to hire will be the same no matter what size your business is. So if you’re considering starting a small business and have no experience, then you can rest assured that you can easily handle the extra responsibility.
On the other hand, a sole proprietorship has no employees of its own and therefore has the burden of hiring them. The owner typically will be responsible for everything, from taking care of the financial side to handling the human resources aspect of the business. This can make it difficult, and in some cases impossible, for new small business owners to start up. A sole proprietor also has no freedom to choose which employees he or she wants. You could lose customers to someone you don’t like, or your profits might fall dramatically because the company over-picks its employees.
When deciding on whether to start a business or to remain in your current job, it’s important to realize just how big of a role technology plays in today’s business world. Small businesses must make the decision whether or not they are going to remain static with an old business method and continue to do what they’ve always done, or adopt new technologies that will give them an edge on their competitors. The choice may not be easy, but it’s one that must be made carefully. Some small businesses choose to stay with their methods and keep using the same methods that have worked for them for years, while others look to technology to help them take their business to the next level.
Some business owners choose to go with technology and hire workers, while others decide to stick with the old school methods and keep with the number of employees they have now. Many small business owners don’t realize how much technology helps a business operates. New software programs, for example, can do many things for small business owners. They can help with accounting, employee payroll, employee benefits management, and inventory tracking.
Whether your small business is one person or one hundred, there is something for you out there. If you’re looking to get involved in working with technology, the online business startup kit is a good place to start. If you’re interested in hiring someone, a business coach, or increasing the size of your business, talk to other small business owners and find out which methods of technology they prefer. The United States government is now encouraging the online startup kits that are available to help those who want to get started with their own online business. This way, the government can direct entrepreneurs towards the businesses that will help them achieve the size and success they’re looking for in a small business.