Two Prerequisites To Managing Small Business Growth
According to United States Census Bureau employment data from 2014, of the the6,795,015 small businesses with employees, 2,894,288have four or fewer employees. Some stay that small by design, while others may not have grown because they don’t know how to expand their businesses effectively. Growth, if not managed properly, can lead to a lack of control over core aspects of a business and decreased quality in products, services, and customer care.
Here are some key considerations that might help you do it successfully
1. Think about scalability from the start
While managing your small business may be easy when it’s just you taking care of all administrative and operational tasks, adding employees adds complexity. Consider creating an organizational chart and job descriptions so roles and responsibilities are well defined and expectations are clear. Having that visual representation of your company’s structure will also help you identify any gaps in management and execution that you’ll need to address.
According to SCORE mentor and business development expert Wilson Chu, “Your business plan serves as a road map for the growth of your business, and it should include the organizational structure needed to achieve that growth. It is important to define the key roles and responsibilities to achieve a cohesive and smooth functioning organization. The job positions and functions as outlined in the business plan must be reviewed from time to time to determine that the plan is still valid based on current business conditions.”
2. Create processes and systems
According to the Merriam-Webster dictionary, a process is “a series of actions that produce something or that lead to a particular result,” and a system is a “a group of related parts that move or work together.” You’ll benefit by having both as you grow your business.
Processes By documenting functions and activities in a step-by-step format, you’ll have clear instructions for the employees to whom you entrust responsibilities. A small sampling of processes most small businesses might consider include: fielding and qualifying leads, prospecting for new business, creating proposals and estimates, creating products, invoicing clients, receiving client payments, etc.
Systems A small business’s systems are the platforms and tools that enable it to carry out its processes. A few examples might include: your accounting
software, email platform, website content management platform, social media management apps, productivity apps, customer relationship management systems, etc.
“Well, thought-through processes and systems will allow your organization to grow and expand to accommodate future requirements. They give your organization the flexibility to change,” explains Chu.
Much of what works or doesn’t work in a small business can often be traced back to the success or failure within its processes and systems, so it’s critical to regularly review their effectiveness.
For more insight about starting or growing your small business, reach out to the local SCORE chapter near you. SCORE mentors have a broad range of expertise about all things involved in managing a small business. They can provide you with valuable guidance and feedback to help you grow your business successfully.
Southwest Regional Vice President, SCORE
Since 1964, SCORE “Mentors to America’s Small Business” has helped more than 11 million aspiring entrepreneurs and small business owners through mentoring and business workshops. More than 10,000 volunteer business mentors in over 300 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. For more information about starting or operating a small business, call 1-800-634-0245 for the SCORE chapter nearest you. Visit SCORE atwww.score.org.