WORKING IN THE
SMALL BUSINESS
SECTOR
X420 Discussion Session #82
OR
THE WORLD OF
SMALL BUSINESS.
IS IT
RIGHT FOR YOU?
1
THINK
SMALL
What’s your definition
of a
small business?
There are many definitions
based upon different criteria.
Here are just a few:
• Type of Ownership
• Size of the Capital Investment
• Sales and/or Service Volume
• Number of Employees
• Number of Locations
My Preferred Definition:
"A small business is a business which is
independently owned and operated, with
close control over operations and
decisions held by the owners. Business
equity is not publicly traded and business
financing is personally guaranteed by the
owners. (The business will have less than
twenty employees).”
---Professors Scott Holmes and Brian Gibson of
The University of Newcastle, Australia
TO REVIEW:
•
Management and ownership are rarely separate.
•
Control over business operations and decisions reside with one or two
persons, who are usually family members.
•
The equity in the business is not publicly traded.
•
The level and number of formal contractual relations are kept at a
minimum level.
•
Personal objectives of owners will guide and directly influence business
decisions.
•
The personal guarantees and signatures of the owners are required to
secure business debt, and limited liability is rarely if ever present.
What does it take to work
for a small business?
Probably the very same qualities it
takes to work for a big business--but more so.
Good Communication Skills---both
Written and Verbal
Reliability and Responsibility
Creativity
Organization
The Question:
IS IT
RIGHT
FOR YOU?
The Answer:
YOU’VE GOT
TO FIGURE
THAT OUT FOR
YOURSELF.
(Know Thyself)
THINK
SMALL
THE BAD NEWS:
1. Nepotism
2. The owner retires and sells
3. The financial risk factor
4. The demands of work
5. You are VERY VISIBLE
6. In your face communications
7. Multi-tasking
THE GOOD NEWS:
1. Small firms are big employers
2. Decision-making and areas of responsibility are usually
shared more freely than in larger organizations
3. Less people carry a broader range of responsibilities
4. In a small organization you are in the best position to take
advantage of any new jobs that are being created
5. Constant challenge of MULTI-TASKING
6. You are VERY VISIBILE
DUE DILIGENCE:
• How long in business?
• Who owns it?
• If the business is family owned, are there relatives actively
involved and employed in the business?
• Will the leadership go to younger, and possibly
incompetent, members of the family?
• How far can I go with the company if I am not a member of
the ownership family?
• What kind of reputation does the business have in the local
community?
DUE DILIGENCE:
• Does it have non-family employees who have been with the
company extended periods of time and have achieved high
levels of responsibility and income?
• Check with the Better Business Bureau if the community
has one.
• You can check with other members of the community, such
as; Businessmen, Lawyers, Accountants, Bankers.
• Also, don’t forget that customers are an excellent source of
information too.
Rules of Work not Taught in The Kelley
School of Business
• You can go anywhere you want if you look serious and
carry a clipboard.
• Important letters that contain no errors will usually develop
errors in the mail.
• If it weren't for the last minute, nothing would get done.
• The last person that quit or was fired will be held
responsible for everything that goes wrong.
Rules of Work not Taught in The Kelley
School of Business
• When you don't know what to do, walk fast and look
worried.
• Don't be irreplaceable; if you can't be replaced, you can't be
promoted.
• Eat one live toad the first thing in the morning and nothing
worse will happen to you the rest of the day.
• When all else fails, go to lunch.
The Four Questions
• What are the seven things I absolutely love to do?
• What are the seven things I am good at, have a talent for, or
other people tell me I'm good at?
• What is absolutely essential for me to do in life?
• What do I feel I ought to do or would like to be doing?
Two After Thoughts
"I am a great believer in luck,
and I find the harder I work
the more I have of it."
---Thomas Jefferson
___________________________________________________________
"If you think
education is expensive,
try ignorance."
----Derek Bok
“The Art of Living”
A wise person once said, “The art of living is to
make use of what you’ve got and use it to the
fullest. Most people do not know what they are
living for. But once you have found out, you have
the jewel of life.”
“I HAVE ENOUGH FISH TO FEED
MY FAMILY”
Evaluation Questions
Use
Strongly Agree---Agree—Disagree---Strongly Disagree---Don’t Know
1.
2.
3.
4.
5.
I found the presentation of material easy to
understand.
This session increased my knowledge on the
subject presented.
I will be able to use some of the information
from this session in the future.
The presenter was well prepared.
This presentation should be repeated in the
future.