Think Global Act Local: Tips to Run a Small Business Effectively

Best tips to run a business with few staff

The business activities of the micro, small, and medium enterprises are regarded as the backbone of the country's economy. Many are rapidly adopting digital business tools to improve their efficiency and are on a rapid growth path.

Running a small business is difficult. Entrepreneurs like you need to know how to manage business. Below we share with you some tips on how to run a small business with a staff of 10-20 people:

1. It is important to invest in the right people

Each new hire should have the same passion as you to see the business reach new heights and also share your vision. You should always hire ambitious and hard-working individuals whom you can trust. If you are interviewing candidates, first prepare a checklist of the qualities that you are seeking. One important thing to ask is what value can they bring to the organisation, and why do they want to join.

2. Build Trust

Most people want to associate with a business or service that they know or trust. So first you should build a good reputation in the market. A good brand value will be essential for the growth of your business.

3. Personalise the brand

Customers want to connect with a human face, so try to put forward real people as the face of your brand. Share pictures of your employees on your social media channels, so people can relate to your brand.

4. Customer Service

Customer experience and first impressions are vital for repeat business, so always try to provide great customer service. The first impression can be a make-or-break moment for small businesses. You should teach your employees that customer service is a component of virtually everyone’s job.

5. Embrace Information Technology

The Government of India launched the Digital India program in 2015, spurring the adoption of technology among small businesses. Businesses in Tier-2 and 3 cities in the hinterlands are increasingly taking up digital bookkeeping solutions to simplify their accounting. The books of account are thus digitally secure. Many digital accounting companies are helping small businesses go digital. In remote regions of the country, new technologies like the OkCredit app are being adopted. This app is recording strong growth in transactions.

Technology is a game-changer when your mission is how to manage a company with less employees.

6. Smart tools for smart businesses

You can also grow your business with smart and simple local SEO strategies. Data science is coming in to help small business owners make instant decisions. This will help you in answering the following:

1. How did that new customer learn about us?
2. Why is there no footfall in my store today?
3. Why is it so busy today?

You can get answers to all of the above and much more, by the various analytics tools.

7. Set Goals

Setting goals is a good strategy that has helped many small businesses grow. Running a company is a long winding road. It is best to set realistic goals for yourself and the team, and when you reach that goal, set yourself new ones.

As the owner, you must tell each member of your team what exactly do you expect from them and whether they are meeting expectations.

8. Choose the right partners

Often as the owner of a small business, you are handling a million things-HR, finance, sales, and so on. But you must select like-minded people to be your partner or team-mate. Resist the urge to do all the work alone, just to save on finances. Identify your strengths. If your strong point is marketing, maybe you can focus on that and leave the admin work to your partner. This is an important lesson while learning how to manage business with a staff less than 10-20.

9. Network with peers

If you don’t know something, do not be afraid to ask people who are in the same business. If you have any friends, you can provide each other mutual support in these uncertain times. Speaking to someone with more experience and skills will help take your business to the same level.

10. Evolve or perish

The world is changing rapidly each day. As a small business, you are at a disadvantage in that your assets are limited. But compared to large organisations, you can move more nimbly, and swiftly change course. Your speed and agility will set you apart. Your eyes should be open to new ideas and the changing business landscape.

11. Manage money sensibly

Working capital is the total amount of funds that are available to you for its day-to-day expenses. If you don’t properly manage your capital while starting a business, you will find yourself in financial trouble. You must keep a track of your finances since it will give you a clear direction of the way your business is going. A regular cash flow is very important to keep a small business running, and many fail on this account.

Track your expenses closely and see that your spending is reasonable and in line with the figure of your business assets.

12. Hiring Practices

Many small business owners make the mistake of hiring young, inexperienced people to save money. But this practice can backfire. An incompetent employee can cost your business much more than just money-your the company’s goodwill is at stock. So, it is best to properly vet the staff before hiring them.

13.Risk Management

How to manage business risk in these uncertain times, is on the minds of most owners of small businesses. As an entrepreneur, you can minimise your risks by pooling your resources with your peers. For example, if you are worried about cash flow, you can share your space with a business buddy.

14. Man Management

If an employee is performing well, then don’t interfere with his way of functioning. After all, getting good results is the deciding factor. On the other hand, if his performance is below par, you should speak to him about this; even though his behaviour or other attributes are good.

We hope that the above tips on how to manage a small business were really helpful to you. Proprietors of small businesses will undoubtedly face many challenges, but if they have a clear plan in place, they will ride them out. Small business owners regularly share close contact with their employees. In a small office with 10-20 staff, a collegial atmosphere can be very effective because all employees are friendly with one another. So, you can benefit from this and build a great team.

Also read:
Tips for Work-Life Balance for the Modern Businessperson
OkStaff: Your one-stop solution for Staff & Attendance management
How to keep your staff happy? Best tips for effective staff management

FAQs

Q. What are the most successful small businesses?

Ans: The most successful small businesses are those that meet needs and demands. Some of them are accounting services, legal firms, cleaning services, etc.

Q. Are small businesses better than big businesses?

Ans: A small business has a better chance than a big one of being adaptable and agile. Due to their scale and size, big businesses are often distant from customers; small businesses can take advantage of this.

Q. Why do some small businesses fail?

Ans: Most small businesses fail because of some mistakes like unmotivated, poorly trained employees, mismanaged cash flow, or a weak business model.