Managing a Small Business in America
Small scaled businesses are very important for developing countries and as well as developed countries. In a country like the United States a small business can become success and it will play an important role in the economy of the country. Like every other country, small businesses have a lot of importance in the US. Each day, numerous numbers of small business are opened, mostly by people who have been laid out from the organizations or by people who left their jobs to have a good balance between work and family life.
Small businesses are mostly opened by women and minorities in the US. As the smallest businesses become increasingly complicated due to globalization, government regulations and customer demands for better quality at lower prices, managerial dexterity is very complex and it is very hard to become a success. (Szarka, 1990) Managers in small businesses have a lot different role from those managers in large companies. One of the most important roles of a manager in small companies is of spokesman as He has to promote his business to the outside world.
The entrepreneur role in the small business is very important, because the managers must be very creative and help their
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(Szarka, 1990) Managing a Small Growing Business Once a business is set up and running, how does the owner manage it? Often the traits of self-confidence, creativity and internal locus of control lead to financial and personal grief as the company grows. A hands-on to the entrepreneur who gave birth to the small business or company, loves perfecting every ting detail of the company. But after the start-up, continued growth requires a shift in the management style. Those who fail to adjust to a growing business can be the cause of the problems rather than the solution for the company.
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A small business goes through distinct stages of growth; with each of the stage the company requires different management styles and skills. There are 5 stages in the growth of the company, they are as follows:- 1. Existence: in this stage the main problems are producing the products or services and how the company can obtain customers for its products. 2. Survival: this is the second stage, in this stage the small business has to demonstrate that it is a workable entity and that the company can be a success in its industry.
In this stage the company is producing or service and the company has sufficient customers for its product and services. In this stage the company would grow and make profit. 3. Success: this is the third stage of the growth period, in this stage the company is strongly based and is creating profit. System and the procedures of the company are in their place and it allows the company to slow down if the owner requires or desires it. 4. Takeoff: this is the fourth stage of the growth period, in this stage the problem that the company faces is how to grow rapidly and how to finance that growth.
The owner must learn how to delegate the responsibilities and the company must find the sufficient funds that it requires for running. This period of the growth stage is considered to be the pivotal period for the company. 5. Resource maturity: this is the fifth and the last stage of the growth stage foe company. In this stage the company makes financial gains but the company starts to lose the advantages of the small size company that is its flexibility and spirit. But in this stage the company has the resources, finances and staff to act like a mature company. (Scott & Bruce, 2002)