Key to success in small business

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Chris Call | 11 Jan, 2011
Every small business owner starts out with the dream of watching his small business grow until it is no longer small. Every small business leader is looking for ways to make his small business more successful. But very few small business owners know what it takes to be successful in their ventures. Most small business owners are knowledgeable about one specific area of their business, but overall, may not understand how to effectively manage their small business venture. There are two key times when dynamic leadership of a small business is especially crucial: During significant downturns, and during explosive growth.

It seems obvious that a small business needs a dynamic leader during times of stress and struggle. This is especially true in today's tough economic climate. When a small business is struggling, it needs a leader who can step in, identify the core problem, and implement a plan to correct it. Sometimes finding and implementing the solution to the small business challenge lies outside of the scope of its leader's abilities or skill set. One of the most important traits of any small business leader is recognizing when he/she is in over their head, and seeking help from a third party expert in the field. Many small businesses have failed because the leader/owner failed to recognize the need to bring in outside resources to correct the core problem. Or worse, the small business leader thought they had identified the core issue, when in fact they were focusing on a symptom of the problem, rather than getting to the root or core cause. A dynamic leader in a small business will recognize when it is prudent and necessary to bring in outside counsel or professional advice to correctly identify core weaknesses or "fatal flaws", and to create and implement a plan to correct the issue.

Less obvious is the need for dynamic leadership during times of explosive growth. It is ever small business owner's dream to watch the company's revenues triple year over year. However, most don't pause to consider the potentially devastating effects of explosive growth to a small business. As company revenues increase, so do expenses and capital needs. If a small business does not have adequate sources for working capital in place, the small business will likely fail, despite rapidly rising sales. Furthermore, a small business infrastructure may not be adequate for explosive growth. Its personnel may not be adequate for the challenge, both in capacity and ability. Any small business should look to its leader to develop and implement a structured growth strategy. Without a solid growth strategy in place, explosive growth can be equally as devastating for a small business as is rapidly decreasing sales. A small business must look to its dynamic leader to guide it through times of rapid growth, and this leader must recognize within himself/herself their own abilities and capacities, and may need to seek expert help in structuring a sound strategic growth strategy.

In conclusion, it is the dream of every small business owner to watch his or her company grow. But uncontrolled and unstructured growth are equally devasting to a small business as is rapidly shrinking sales. A small business relies upon a dynamic leader to guide it through both times of prosperity, and times of struggle.

(Source: Articlesbase)
* Chris Call is freelance writer.
* The views expressed by the author in this feature are entirely his/her own and do not necessarily reflect the views of SME Times.