Unlike big companies, which are often accountable to a pool of shareholders seeking maximum profit, small businesses are often closely held and managed by their owners. This can make small business management especially rewarding, although it also can be difficult to bear virtually all of the responsibility for company decisions. Small business policies and procedures should strike a balance between staying solvent and serving the company's larger mission and ideals.
Customer Service
Small businesses often hold an advantage over large companies when it comes to customer service because customers genuinely appreciate dealing with human beings rather than corporate entities. However, small businesses face a potential disadvantage when it comes to customer service because they are more likely than large companies to be stretched too thin to offer extra attention. Small business policies and procedures with regards to customer service should be geared toward making the most out of face-to-face interactions, getting to know customers as individuals and following up to make sure customers are truly satisfied.
Money Management
Although small businesses are less likely to be sufficiently funded than large companies, they tend to have a greater degree of flexibility in prioritizing expenses. For a large company, the decision to delay a plan for expansion involving capital investments could likely involve extensive board meetings and approval by a chain of managers. At a small company, this decision might simply involve rescheduling marketing and production processes. Financial policies and procedures for small business should be directed towards reaping the benefits of this flexibility by adapting quickly and taking full advantage of sudden opportunities.
Values
Small businesses are in the unique position to express the values of their owners and managers, even though they might make less money by doing so. A small business owner has the option of turning down business ventures simply because they do not feel right, while a decision maker operating on behalf of a larger company may need to provide solid evidence. Small-business policies and procedures with respect to expressing company values should not be implemented frivolously, but they always should express the fundamental ideals behind the company, such as helping people or caring for the environment.
'The Sanity Factor'
Most small businesses are run primarily by their principal owners, who tend to work long hours and assume personal accountability for decisions and product quality. Every small business owner inevitably runs into situations where he must choose between doing the most he can for his company, and taking care of his health and sanity. Small-business policies and procedures with regard to owner involvement should always take into account the fact that if you don't also take care of yourself, you ultimately will not be able to take care of your company.
