Whilst there are many factors of business that are common regardless of the size of the business, there are some behaviours that are common in big business and absent in small business – to the determinant of the small business. Here are 3 Big Business Things Every Small Business Should do.
Here are 3 things that big business does and small business doesn’t but really should, especially if they want to break out of owner dependence (where a small business is more self employed job than business due to it being dependent on the owner working in the business to survive)
3 Things Every Small Business Should do
1. Build in Accountability
Big business has layers of management and this creates accountability. Small business generally has one owner manager and there is rarely anyone there to hold that person to account.
Every idea is a good idea, every excuse a valid one and every justification right on the money.The lack of accountability is a major contributor to mediocre results in many small businesses but fortunately it has a easy fix.
You need to get some people around you that will remind you of what you commit to do and tell you that being too busy is no excuse for not doing the sales calls you know you need to do, as an example. It can be a peer, a group, a coach or mentor but that person must be comfortable telling you the truth.
2. Segment & Discriminate Clients
Many small business owners are reluctant to focus on segments in the market and opposed to discriminate against clients who are not core.
This greatly increases the work load, reduces the value provided to the clients and in turn the profitability of the business.Big business does this very well and in fact that would not survive if they didn’t.
Singapore Airlines is very comfortable discriminating in favour of the people at the front of the plane and BMW with the 7 Series buyer.
Your top clients deserve more / better / bigger and unfortunately this means that the bottom clients will get less. In many cases they expect this anyway. The top ones certainly do. Not all clients are created equal and it is a mistake to try and treat them equally.The other aspect of this point is where clients enter your business.
Small business often buys the ‘promise of lots of work ‘ and start new clients off as A clients, only to have to move some of them down to B and C later when the promised work does not materialise. Big business does this much less. Take the Qantas club – you can’t ‘talk’ your way into the Platinum Club, you have to earn it through flying.
Why? Not because it is full but because it would piss off the current members who have earned their spots and privileges and they (the current A clients) would likely move to another airline.
3. Work on the Business
Whilst big business is know for unnecessary meetings and communication, amongst all the meeting they actually do a better job at allocating time to work on the business.
Small business owners struggle to find the time and importantly to prioritise this activity and as a result their business grows / develops at a much slower rate than it could.Again an easy solution but one that takes discipline. Booking time and location to ensure that you spend some time every week working on your business is a key to short and long term success.
If you are not working on your business then who is?