Small businesses are unique entities. In fact, in my years as a management consultant, I have learned that the very DNA of a small business is quite different from that of the larger organizations I have interacted with. The problems small businesses face appear more critical, are felt closer to the quick.
Over time, I have seen a number of issues that threaten the continued success of a small business as they grew. I also have noticed that when growth occurred, certain procedures and practices that were previously adequate just didn’t suffice any longer.
In general, owners needed to dial things up a notch and think like they were a much larger organization. Changing with the demands of the new reality was a necessity, and this was often the point when I was contacted.
Here are a few trends that I have observed:
- Lack of documentation concerning roles. Certainly, the idea of job descriptions is not an exciting concept – but having an accurate idea as to what your employees actually do is critical. As organizations develop, daily tasks evolve with the needs of the business. If required to replace an employee suddenly, and a crystal clear picture of role they play does not exist, you will be hard pressed to find an appropriate replacement.
- Informal communication channels began to break down. Of course, businesses rely upon these networks to communicate information about work procedures, customer practices and organizational mores such as a dress code. However, the informal system becomes strained as the number of people in the business increases. Structure must be implemented to ensure that messages are received consistently. This might include an employee handbook or specific employee onboarding procedures.
- A review of computer software becomes necessary. As small organizations grow – often in fits and spurts – software is often purchased to rectify problems piece by piece. However, the overall user & system demands are not reviewed. At some point, it may become a tangled mess. Review software quarterly to document emerging weaknesses and future needs.
- An adequate system to document customer base becomes critical. Although this sounds simple, I was amazed when a small business really didn’t have instant access to their top 50 customers. If a system isn’t in place, trouble will likely follow. Retaining customers begins with a solid base of information concerning who your customer is – their needs and concerns.
- An idea management program becomes important. Even though your business may be smaller, there will be no shortage of ideas to improve the business from your employees, so be prepared. Of course, not all of them will be feasible. So, a formal system to evaluate the ideas becomes necessary. Often employees are not aware of the risks or the potential organizational impact that comes with a change. Posing the idea in an open forum, with one of the business leaders present can be very helpful.
When you run a small business, remember first things first. Pay attention to organizational structure issues and the areas that support that structure. Be prepared to grow.
Dr. Marla Gottschalk is an Industrial Psychologist who helps individuals and organizations excel. Through a process of research, innovative thought and strategic planning, it is possible to effectively navigate the evolving business climate. She is the Practice Manager of Organizational Development, at Rand Gottschalk & Associates, a consultancy focusing on workplace effectiveness.
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