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
family-safe home cleaners Lincolnshire ..Before you want to build your business, you need to... Read More
-- The One Pager Shortcut Series --An effective and compelling... Read More
Whether you operate a chain of restaurants, a mom-and-pop convenience... Read More
Anyone in business today realizes both the natural dependency on... Read More
As a business owner, you already know how important it... Read More
Is it right for you?If you decide to advertise your... Read More
What is a Virtual Assistant?A Virtual Assistant is a person... Read More
I started working with another new client last week. He... Read More
Sometimes the simple businesses are the ones, which make good... Read More
Want your small business to flip instead of flop?! Statistically... Read More
All franchises must meet the legal definition of a franchise... Read More
The challenges of the small business owner are well documented.... Read More
When do you need to get more involved with the... Read More
Would it help you as a real estate investor to... Read More
If you are looking for a way to own your... Read More
Commonly folks have asked me what the technical difference is... Read More
It's just like a marriageTo expect a bank manager or... Read More
Owning a small business in Wichita, KS might not be... Read More
I love work, I can watch it all day.I am... Read More
We very much like what we see in Lubbock, TX... Read More
Many small business startups fail within the first 2 years... Read More
Thinking of starting a business on line? If so there... Read More
Unfortunately for all buyers, each selling organization and their individual... Read More
When you go into business for yourself, there are many... Read More
Attorneys and Lawyers are ruining the franchise industry. It is... Read More
after renovation cleaning Bannockburn ..As an Investment Representative you've worked hard to build trust... Read More
Each day we hear of companies entering the franchising industry.... Read More
Has this ever happened to you... 'John, you have a... Read More
How often has someone thought of starting a business based... Read More
Running a business, whether large, small or in your home,... Read More
Last year, trillions of dollars transferred hands on the internet... Read More
A Small Business Opportunities Magazine is one of the new... Read More
How much is your time really worth? Is it worth... Read More
Business Process Automation or BPA for short. This was a... Read More
How many hours do you work a week? When was... Read More
A cherished business doctrine is that growth must be a... Read More
Writing a business plan for your Solo Entrepreneur business doesn't... Read More
If small business had no important outside audiences, it wouldn't... Read More
When the recent Games of the XXVIII Olympiad came to... Read More
As a practise gets larger & larger the associated problems... Read More
In my 18 years of consulting I have heard it... Read More
Thinking of starting a business on line? If so there... Read More
We hear a lot of talk about junk mail nowadays.... Read More
There are many factors to be considered when you are... Read More
Everyone wants to succeed in life. Most people want to... Read More
Seems as though there are a lot of business closings... Read More
Purchasing a franchise has become one of the most popular... Read More
Obtaining a business credit card enables the small business owner... Read More
Once you've decided to incorporate your small business the next... Read More
Under the Securities Act of 1933, any offer to sell... Read More
Small Business |