Small Businesses: Pros And Perils



When you lead a startup company, you will very likely have a much more hands-on approach to business over a large conglomerate. The whole process becomes a collaborative affair which is a plus, but this also means that the lines get blurred when it comes to roles within the organization, and this can cause some internal issues, such as a certain area not being focused on with as much care. This can cause a massive slack that needs to be picked up elsewhere. So how can you best have a handle on the whole process in a small organization, and how can you implement a sense of order in such a small setup?

Let’s look at the model of a food wholesalers business to get a better sense of how a small business copes, where in fact the business is usually comprised of one person! The relationships that they have go in two directions, one way is towards the manufacturer and the other way is towards the distributor. The wholesaler acts as the middle man. In this position, you would be the glue that gets the product from A to B, and you need to understand the difference between the two and not get caught up in issues that are not your problem, which can be very easy to get involved with. A big issue in this position is not getting payment, which can be avoided by setting out payment terms before any product has changed hands.

If your company requires you to have a more hands-on approach, in other words, you are in complete control of the whole process, this means making sure that each process flows seamlessly into the next one, which requires a process that is very detailed and one that is implemented in stages. As each aspect is set up, from changes in tech through to the packaging, you have a better idea of the organic development of your product, and by looking at the process in better detail, your ideas will improve. For example, implementing stand up pouches over the packaging you already have makes you able to store more items in one bag, which can help you to shift more product for a lesser cost.

The working relationships within a small business can be fraught, especially a partnership or three-partner company, because the passions can overshadow the overall process. If one person gets into a heated debate about a tiny aspect, it can be a difficult hurdle to overcome, but the business needs to take priority, and as the saying goes, “it’s not personal, it’s just business.” This is a big thing to develop when it comes to your own sense of working because tempers can fly and it really can get in the way of a smooth process, especially if it is a venture that is started by a group of friends or a couple. The relationships can overshadow the product, and so it’s best to lay out some ground rules for a better working relationship, so the business can bloom and the product can sell.


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