Most business owners and CEOs have a personal vision for their company, a vision which usually involves a more hands-off approach at the top. Everyone loves the idea of being the big picture visionary who experiences periodic inspiration, hands it down to their loyal and experienced staff, then watches the concept magically come into being.


Unfortunately, while this may be how life works for the CEOs of Fortune 500 companies, small business owners generally need to keep getting their hands dirty in order to accomplish their goals. This means determining which tasks can be effectively accomplished in-house and which can be more capably handled by outside agents.

Similarities

Certain business principles apply to enterprises of all sizes.

Goals

Every business needs to have clearly outlined goals in order to reach them, regardless of how lofty or modest they may be.

Planning

Setting out strategies to reach your targets before rushing into the implementation phase is essential, whatever the business size or type.

Budget

Every business has a budget, the parameters of which will influence every other aspect.

Relationship Management

Good communication and clear roles are crucial in every business, whether you are responsible for 500 employees or just five.

Marketing

The platforms and extent will vary considerably, but the ultimate goals remain very similar.

Differences

Beyond these basic, and rather general, similarities, there are numerous differences between running large and small businesses. It is important to recognize them and use them to shape your business strategies.

Business Planning

In a smaller business there won’t be a large team of strategists on hand to provide ideas and strategies. Depending on the scope of the business, this can range from simple brainstorming sessions to the recruitment of dedicated business consultants.

Bookkeeping

While you may not actually be doing the books and payroll or filing the taxes, you are most likely responsible for providing the information in an organized and accurate fashion. Unless you have an accounting background these are aspects that make sense to outsource.

Human Resources Management

There is no huge HR department to rely on, so the hiring, firing, and managing of employees is still your purview. This is one of the areas where employing an outside HR expert can really simplify your role and leave you free to play to your strengths.

Client Contact

With smaller companies, customers still expect the business heads to show interest and be available if needed. This is one of the first areas that tends to be scaled back as businesses begin to grow.

All independent large businesses were small at one time, but it takes a lot of time and hard work to make that transition. It can’t be forced and you can’t skip any steps. Small businesses that try to expand too quickly are often the ones that collapse under the weight of debt or unrealistic production targets. As much as it would be great to envision yourself at the head of an efficient juggernaut that requires only big-picture delegating to keep rolling along, the reality is that in the early stages everyone will need to get their hands dirty. But if you follow good business practices, stay focused on your goals, and outsource effectively, over time that dream can come to fruition.

Feb 21^st 2019.