Small Business, Big Business ? What's the Diff?
Well a lot actually!
I become frustrated and angry at the government's paying lip service to assisting small business. It appears as though all governments, bureaucrats and many accounting advisers do not know what a real small business is.
In Australia the government's definition for a small business is one which has less than 100 employees. Who are they kidding? In my consultancy that's a big business.
They believe that 'small business' is the same as 'big business' on a smaller scale, that 'big business' is 'small business' with more of the same.
Wrong! About 99% of small business employs less than 10 employees and what is beneficial to the 100-employee firm may be downright dangerous for the 10-employee firm. Governments must know that. They can't be so stupid not too? can they?
We Aussies are ready to believe anything about our politicians. We have met so many of them and none of them seem any brighter than the fellow next door. (In fact, none of them seem to know as much as I do).
When I decided to go global I was certain that the situation would be different in the USA. I was wrong.
The USA Small Business Authority has set a size standard for most 'small business' enterprises. In the full Table of Small Business Size Standards Matched to SIC Codes published by the Small Business Authority it is annual turnover that limits the size of small business firms.
In my consultancy of restaurants, coffee shops, florists, hairdressers, electrical retailers etc. the turnover limit is $5 million. In Australia there are NO single shop establishments achieving that sort of turnover.
In Australia a hairdressing salon working a 7-day week at an average price of $70 per client would need 30 clients each and every hour on ever day of the year. Impossible in Australia and probably in the USA too.
This does clear up an anomaly I had noticed in the different approach business plans took in Australia as opposed to that taken in America.
When Australian business began to use the Internet almost all the business plan software was from the States. The plans, although meant for small business, were not appropriate for Australian firms because they focused entirely on obtaining venture capital.
There were very few venture capital providers in Australia and of those that were few were interested in providing capital to the majority of our small 'small business'. Business Plans languished in the filing cabinet and were hardly ever seen again.
The Australian consultants began to oversee business plans that focused on their being used as management tools. The planning itself was a vital element in the success of the business?and the plans were used to chart the course of the firm.
Each month the actual results were compared to what had been expected in the business plan. Tactics were formulated to overcome shortcomings or build upon favorable results.
Are you a small business owner who has studied all the books and web information that you can get hold of, and it is still not happening for you?
Perhaps it is because the information was directed to firms much larger than yours - firms with 100 employees or $5 million in sales. You need information more suited to your own business size.
Various organisations publish benchmarks for your industry. Compare your own results with the industry average. This will show where you should be concentrating your efforts for improvement.
You should seek out advisers and information that applies to 'mini' business ? firms that are your size whatever it is. Perhaps you own accountant can help you find it.
But never be so foolish as to believe that what the government says is good for small business will be necessarily good for you.
Kelvyn Peters CPA and Associates knows profitable business strategies that really work.
And he's only an e-mail away.
The Author
Kelvyn Peters is one of Australia's longest serving Tax Agents. He was registered in 1962 and became a CPA in 1964.
Kelvyn served on many charitable boards including St Aubyns Hospital, Alzheimer's Association, Older Peoples Advocacy Service and Golden Years Center. As a young man he won the Outstanding Jaycee Award three times.
Kelvyn is a compassionate, generous man who loves people. That's why he is so skilled at helping people in trouble.
Kelvyn Peters was Mayor of Kingaroy Shire Council from 1979 to 1984 and campaigned as the 'Young Man of Action".
Over 20 years later he still regards himself as a 'Young Man of Action'.
He is a director of Restaurant Catering Qld Inc the peak employer representative in Queensland, and has advised the hospitality industry for many years.
His specialty is moving in to rescue an ailing business.
Kelvyn Peters CPA has spent over 20 years experimenting and researching methods to help small business in ways that are affordable.
He's done that for local clients now he's going global.
http://www.profitstrategies4business.com
scheduled cleaning services Lake Forest ..Whether you are an Entrepreneur or Business Professional there are... Read More
No matter type of business you operate you've got to... Read More
You've probably heard the statistic that 95% of small businesses... Read More
Small Business, Big Business ? What's the Diff?Well a lot... Read More
Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More
There were only an estimated 1800 active franchisors in this... Read More
Everyday, customers and business owners are bombarded with billboards, logos,... Read More
"So what?" is a lovely question.It can lead to a... Read More
Your on-line success is based on your efforts and yours... Read More
A suggestion box is a really good idea for your... Read More
The way you manage your money is one of the... Read More
For many small businesses, the "S" corporation is the business... Read More
My colleague, Jane, recently lamented to me an all too... Read More
If you really want to earn more money with your... Read More
When a regulator finds a target to go after to... Read More
If you are a small business you know that you... Read More
I am simply amazed at the problems some of my... Read More
Remember the training programs, seminars, and workshops you had to... Read More
As small business managers, we juggle limited resources in a... Read More
I love work, I can watch it all day.I am... Read More
Remember those drawings from science class of how a lever... Read More
-- The One Pager Shortcut Series --An effective and compelling... Read More
1. TargetYou are not all things to all people. Decide... Read More
Concrete Roof Tile Business: During the 2004 summer season, storms... Read More
Why Alliances FailWhen do you know an alliance is falling... Read More
one time home cleaning Morton Grove ..Where would a business be without a business plan? A... Read More
Do you own a franchised business? Over 400,000 franchised businesses... Read More
There have been many great points raised on both sides... Read More
We all know that a building has to have a... Read More
Too often in business we get trapped into reviewing our... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Tammy, a skilled and gifted horticulturist, called me to discuss... Read More
No matter what kind of small business you have, you... Read More
Why does a good business relationship rely on having some... Read More
Many investors and business ethics professionals are calling for more... Read More
Imagine that you have operated a successful franchise business for... Read More
Think the best way to get more customers is to... Read More
As a business owner, you already know how important it... Read More
Why should you always maintain a good report with a... Read More
Remember those drawings from science class of how a lever... Read More
1. Know Where You're Going ? Coach Herb Brooks had... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
Do you have all the customers your business can use?The... Read More
This year, some 700,000 American businesses will be sold. Most... Read More
Q: I really want to start my own business, but... Read More
As small business owners we're in business to make money... Read More
Your business is only as good as the number of... Read More
Here are a few tips on how to hand out... Read More
What is the best time to expand a mobile car... Read More
If you plan to upgrade your workshop into an Authorized... Read More
Small Business |