How to Grow a small business, Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as “small” in terms of being able to apply for government support and qualify for preferential tax policy varies depending on the country and industry.
Small businesses range from fifteen employees under the Australian Fair Work Act 2009, fifty employees according to the definition used by the European Union, and fewer than five thousand employees, to qualify for many U.S. Small Business Administration programs. While small businesses can also be classified according to other methods, such as annual revenues, shipments, sales, assets, or by annual gross or net revenue or net profits, the number of employees is one of the most widely used measures.
How to Grow a small business : Years ago I shared with you the sad story of an old man who had a supermarket at a popular location. He boasted that he started his day at 4am and left at 12am. His business never grew because two of the Ps were missing:
# People: He did not hire people with management and leadership skills to run his business.
# Process: He did not invest in the processes that would have allowed him to run multiple locations with lots of time to spare.
How to Grow a small business : You don’t ever need to visit a business if these two P’s are in place!
When your business is small, you obviously must work every day and every night to make it a success, with energy and passion, and with a deep desire to make it bigger. Now I know some of you are working your hearts out just to make ends meet every day, to feed your kids and get their school fees paid.
How to Grow a small business : Still in your entrepreneurial hearts I know you are working towards a future where your business grows from a small business to a big one… Keep at it, because no matter how small your business is right now, what I am going to say applies to you, too.
The three Ps. For the past several weeks I have discussed the importance of:
If you’re dreaming of building a business that grows very big, I want to give you another perspective and share a few important secrets on this same topic. Let’s talk.
You have heard the expression “get a life”?
__Your business must also have a life!
It’s important to allow your business “to get a life of its own,” separate from you. It must be a separate living persona that has its own needs, separate from you. You are not the business and the business is not you.
Imagine you run a cash business like a supermarket and a dear relative comes in with an emergency asking for money. Can you say to that person: “I’m sorry I have no money; what I have belongs to the business”?
How to Grow a small business: People who run big successful businesses never treat the money of the business as their own. If this surprises you, then you are not yet ready for the big league!
A friend came to me once and asked me to lend him some money and I said I didn’t have any. I could see the bitterness in his face as he said, “Everyone knows you have money because your business is really doing well.”
“The business is really doing well, but I’m not the business,” I replied. “The two of us are different from each other.”
Now if you’re new to big business, you will not accept this, but if you went to Bill Gates or Patrice Motsepe they will tell you the same.
Let me tell you, if you cannot do that, you will never be able to own a truly big business.
#Tough talk? You better believe it!
Similarly, you cannot take the money belonging to the business to build a house for your family or buy a new car.
You are only entitled to your salary which should be fixed and taken only when others get paid. You are also entitled to a small portion of the profit, taken only from Year 4 of successive years of profit. Cap it at 25%.
I have known some absolutely brilliant, innovative entrepreneurs in Africa and yet they struggled with this one thing: They would not allow a business to have a separate life from them.
The entrepreneur who allows the business to have its own life is the one who builds a big business.
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