Small business can be described as a group of workers who operate under a cooperative agreement or partnership. Small businesses are privately owned enterprises, partnerships, or sole ownerships that have fewer employees and / or less annual sales than an average-sized business or company. Some examples of small businesses include privately held restaurants, retail stores, franchises, art galleries, small furniture shops, privately held banks, online services, and other types of businesses. Although most small businesses are considered low-scale, they do represent a significant number of the U.S. economy. This article will discuss laws surrounding small business, including the general principles of economics that apply to these businesses.
Many economists believe that small businesses, along with online consumer markets, form the backbone of the American economy. Specifically, the focus is on Internet-based businesses such as online pharmacies, home-based businesses, work-at-home options, adult entertainment venues, and other online transactions. According to the Small Business Administration, a recent study by the economic researchers at the Wharton School of Business found that online consumer spending topped three times the amount of traditional shopping, twice the amount of online direct spending, and nearly tripling the total amount of spending on multi-family properties (which includes condos, apartments, mobile homes, town houses, and so on). The current economic climate has resulted in millions of small businesses experiencing a downturn in sales; however, the cause of this drop in sales is much more complicated than just the economy.
One of the most significant drivers of the recessionary slow down in small businesses is the overall economy, or rather the lack thereof. In a nutshell, all too many consumers have been forced into jobs they (or someone else) didn’t want, which negatively impacted the income of the remaining population of consumers. According to economists, the key to recovering this economy lies in addressing the issues that have led to a slowdown in business spending.
In order for small businesses to regain momentum and start making money again, they must address some key issues in regards to their operations. First and foremost, owners must make it a point to keep down employee salaries. Although it may be economically feasible for an owner to reduce employee numbers, the negative impact this would have on an already struggling business cannot be overstated. If you want to see small businesses prosper and remain successful through difficult times, you must prevent cutting back on employee benefits. You absolutely must retain every employee you have, and any reduction in the number of employees would definitely harm your ability to succeed.
Another way to help struggling small businesses is to develop an effective marketing strategy. By identifying a “problem” or “theme” to market around, small business owners can effectively utilize their resources to draw in business. It is important to remember that customers tend to be much more receptive to catchy marketing strategies than they are with products or services. If your business offers something of interest to the customer, they will almost always be interested in what your business has to offer, and it provides information about your company to those who visit.
One of the other ways in which you can improve the standing of small businesses is by ensuring your employees receive appropriate training. It is important to select employees who are well-versed in the day-to-day operations of your company, as well as in the specific areas of your product or service. There should always be an emphasis placed on providing quality service, and ensuring your employees are informed about new developments. A well-trained staff will be able to respond to customers in a more efficient manner, and they will also be more willing to provide customers with information or assistance. Developing good employee relations goes a long way towards ensuring that small businesses survive and thrive.
Finally, the ability for customers to contact employees directly is important when conducting business. In many cases, small businesses employ a customer service representative or similar employee whose sole responsibility is to personally contact customers. When this does not work out, it can create an atmosphere of negativity within the workplace that will reflect badly on both your company and your employees. Always ensure that your employees know how to best deal with customers, so that they may provide the personal touch necessary to improve customer satisfaction.
These are just a few of the methods available to you for improving the standing of small businesses. Every business is different, so it is unlikely that these methods will necessarily apply to your small business, but it is important to remember that you do not have to go it alone. Instead, consider talking to experienced individuals within your industry to see what they have done to improve their own businesses. With some effort, you can find a program designed specifically for your small business size.