KNOW YOUR SMALL BUSINESS

 
Understanding Small Business:To understand the meaning Small Business, it is necessary to know first consists of the elements of what is included in it:


• Independent Management• Capital provided by the owner• The main operation of local• Sized relatively small in the industry
"A small business if the owner has a direct line of communication with the operations manager and personal relationships with most of the labor, including the key personnel". Businesses owned and operated individually. Businesses that employ no more than fifty people (this number may differ from country to country)
STRENGTHS AND WEAKNESSES OF SMALL
Weaknesses Small Business:Here are discussed some disadvantages small businesses, as follows:
Financial Limitations:Balancing 'money in' and 'money out' is a struggle, especially when trying to develop. Instead of receiving the red carpet treatment from the owner of the capital when asking for a loan, small business even more often treated as second-class citizens. Small business firms can not use the credit as a tool to be as easy as that carried out by large corporations. In addition, most small companies have problems to survive as long as waiting for their products to be accepted by the market.
Issues Staff:Small businesses can not pay wages and provide opportunities and status that is usually found in large companies. Small business owners should concentrate on day-to-day issues of running a business and usually have little time to think about goals.
Direct costs are higherA small business can not buy raw materials, machinery or supplies as cheaply as large companies, or get discounts for larger volumes like a large manufacturer. So the cost of production per unit were usually higher for small businesses, but nevertheless usually lower overhead costs.
Like a too many eggs in one basketA company can terdiservikasi experiencing barriers in one sector of the business but still strong. This does not apply to small businesses with just a few types of products. Small businesses are particularly vulnerable if a new product does not sell well, if one market is affected by the recession, or if the product is suddenly a long lag ja-man.
Lacking in credibilityCommunities receiving the company's products because of its name known and generally trusted. Small businesses must fight and prove himself each time offering new products or enter new markets. His reputation and past success in the marketplace is rarely taken into account.
The personal touchCustomers often will pay for a maximum individual attention. Even in most of the industries in which the difference between the product and pricing sa very few, the people become the main competitive advantages.
Higher motivationKey management in a small business usually consists of the owner. They work hard, consequently, longer and have a personal involvement. 's Profits and losses have more meaning to them than salary and bonuses earned by employees in his large corporations.
Higher flexibilityA small business has the flexibility as a major competitive advantage. A large company can not close a plant without the disposition of labor organization, or even raise prices without government intervention. But small businesses can react quickly to changing competitive. A small business also has a communication path is shorter. Narrow the scope of its products, the market is limited and factories and warehouses near. The company is able to quickly 'kissing' problems and memperbai-Kinya.
Lack of bureaucracyUnderstanding the big picture is difficult for executives in large companies. "Management Myopa" This leads to redundant actions and bureaucratic inefficiency. In a small business, all the problems can be easily understood, da-pat decision easy to make and the results can be checked easily.
Not flashyBecause not so considered, the new company can try sales tactics or introduce a new product without drawing excessive attention. Large companies always face proxy wars, antitrust actions and government regulation. They also ku-rang flexible and difficult to be replaced or re-structured.

Small Business Continuity strategy Based on its properties:• Lead to a specific market segment• Business is local1) Local Community2) labor / employees are local3) Local Suppliers4) The local market5) Local Consumer6) Local Bank• Provide a personal touch• It is recommended not to directly compete with companies
Through field Successful Small Business• Provide limited demand on the region or small region• Manufacturing that meets the demand for a specific time or a lot• Provide technical improvements• Provide personal service• Situations in which the market is changing rapidly