Tips for Small Businesses

What is a Small Business

The usual definition of a small business is calculated by revenue - between $1 million and $40 million dollars. Some calculations define a small business as a business with fewer than 1,500 employees. So these small businesses may be much larger than you think.

#1. Define Your Key Metrics

Every business needs to understand its key metrics. These metrics could range from where customers come from to how revenue flows in the business to various operational costs.

Too many business owners have no idea how their business actually works. They just stumbled onto some idea that happened to be profitable, without truly understanding the economics of it. By defining your key metrics you are better able to understand what really drives your business.

Common key metrics include: Customer Acquisition Cost, Product Cost, Target Turnaround Time, Accident Rate, Etc

2. Define Key Processes

Businesses are built on processes that are repeatable. If you make ceramic vases you know how to spin them, you know how to fire them, and you know how to sell them. Each step is repeatable and trainable. Having well defined processes is a must for any business.