SMALL BUSINESS MANAGEMENT

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There is no universal way to determine how big a small business should be. However if your business has not invited for capital from the public, I would simply consider it to be small. On the other hand, I am not ignoring the fact that they are businesses that are large enough to be considered as big businesses. A simple definition of a small business would therefore be any business venture that the investor does not want it to be so large such that he/she relinquishes control of it to external parties. This means that factors such as capital invested, number of employees and the expected returns form a basis for determination of a small business.

Research has shown that people who depend solely on their salaries end up frustrated later in life after their retirement. This calls for radical measures by every person who has a pay check every month. However, starting a business is not an overnight decision. There are very many factors to consider before engaging in any business venture. Of all the factors that one should consider, the most important is to know which business you would like to engage in. Other factors include: location, proximity to customers and suppliers, government regulations and the possibility of business expansion.
If you intend to begin any business, you should ask yourself why some entrepreneurs succeed in every business they begin while others fail even before they begin. There is only one secret behind success in business, and that is to know where to invest. If you make a wrong investment decision, it does not matter how right you choose the other factors. The fact is that you have already failed.
To succeed in business, you need to identify a need in your society. I need to take you back to your elementary studies. I want you to understand that there are three basic needs;
" Food
" Shelter
" Clothing
This is where you must begin. Research has shown that the richest people on earth are in one way or another involved in hotel (food) business. Think about the richest in your area, does he or she own a hotel, or a partner in one?
Investing in real estates (shelter) is one of the best investments you can ever make. This is because you are assured of a constant inflow of cash every month. Think of the next richest person in your locality and see whether he or she has invested in real estate.
Fashion changes on daily basis. Women want to put on new hair styles, jewellery and clothing, while men on he other side are nowadays turning stylish. You need to think about investing in the fashion (clothing) world.
You have to realize that no matter the economic status people must eat, wear clothes and live in houses. So go on and invest in any of the three.
We are considering a business where you have total control and whose single coin goes to your pocket. The first thing that you have to put in mind is that your sole purpose is to make profit. But you have to allow your business to grow old enough to begin producing some returns. I was once involved in the production of a local magazine. Our advisor told us that we should not expect any profits from the magazine till the 4th issue. This sounded absurd, but after we had produced the third issue, there were signs for some profits.

Secondly, you need to meet your customers’ needs. A business that does not put its clients first will die as soon as it came to being. You must know that the customer is the most important individual in your business and your business exits because of him/her. A satisfied customer will tell one or two of his/her friends. On the other hand, a dissatisfied customer will tell a least five of her friends about your poor services. Do not forget that customer needs include how you handle them.

Management of funds comes next. To increase your profits, you have two strategies at hand; either increase sales or cut down costs. Decide which one is best for your business. Nevertheless, the first strategy shows that your business is growing