We now look at eight characteristics important to successful small businesses. International researchers who have studied many small businesses have found that these characteristics consistently play a part in the success of small companies. The eight characteristics are:
- Owners leading by Example
- Access to financial performance and business KPI’s
- Information sharing among employees
- Staff are carefully chosen
- Staff commitment and loyalty
- A unique product or service
- A specific Customer focus
- Prompt follow up
1. Owners leading by example
The owner or manager leads by example. He or she is usually the first to arrive, the last to leave. The owner knows everyone by name and their presence is obvious. They show a strong commitment, setting the standard where they work. This commitment should be easy to understand, after all if they don’t work hard in their own company, how can they expect any one else to take their business seriously?
2. Access to financial performance and business KPI’s
Understanding how well your business is doing in real time means you can consider current and future profit and cash flow of your business and make informed business decisions.
Key performance indicators are the tools business organizations use to define their goals, and establish quantitative measurements designed to determine whether any progress is being made towards those goals. They provide data that can be used to spotlight performance characteristics across a variety of matrixes such as financial performance, customer relations, marketing efforts, and even employee productivity. Read our blog here on KPI’s.
3. Information sharing among employees
Staff receive information as soon as the owner does. Goals, problems and concerns are discussed openly. Feedback on issues is encouraged and staff are asked to contribute their own ideas for making improvements and overcoming difficulties. It is often this aspect of open communication that staff appreciate the most, after all it is fairly unique to small businesses.
4. Staff are carefully chosen
Staff are recruited very carefully, because the owner(s) recognise they are the lifeblood of any small business. Staff are hired on the basis that their knowledge, skills and abilities will be beneficial to the organisation rather than because of friendships or family relations. Staff are not only carefully chosen but are nurtured and trained so that both the staff member and the organisation get the maximum benefit possible out of the relationship.
5. Staff commitment and loyalty
All staff are very committed and loyal: good performance is rewarded with praise, extra responsibility and money—poor performance is not. Consistently poor workers are removed as they upset the rest of the team. Organisations 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 their own designs, products, systems or some other aspect which sets them apart. This uniqueness is an important source of competitive advantage and one which many companies work hard to sustain, adapting and innovating their products or services as their competition catches up on them.
7. A Specific customer focus
Successful small businesses have a specific focus on their customers and clients and are geared to supplying them with exactly what they want. This focus means adopting a market led approach, with the owners and their managers consistently looking 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 an enquiry or complaint is received, successful small companies actively follow up and solve them as quickly as possible. The results are promptly reported back to the client or customer and in the case of complaints, measures put 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.
If you need help making your small business more successful contact NCA Book here for a no obligation free one hour consultation.