Advantages of Small Businesses

How do you classify a business as small? To qualify for the U.S. Small Business Administration, the organization needs to employ less than 500 people, whereas in the EU, the numbers of employees have to be 50 or less. This is one criteria on which it is possible to classify a business as small. It is also possible to classify it on the basis of sales, profits etc.

The advantage of a small business is that it doesn’t need too much of an initial investment. It can also be done by a group of people after their day jobs are over. It doesn’t require too much of its owners. Also, the owners of a small time business are not restricted or confined to any rules. They can do their work as and when they please. They are not answerable to anyone.

Managing a business

A business is not a sudden agglomeration of people working for a common cause. A business requires a lot of deliberate effort on the part of the ones in charge of managing. For best running of the business there must be one body who manages the various affairs of the business. This includes the accumulation of raw materials, man power, payment of their salary, processing the raw materials, advertising, marketing etc. If advertising is not done properly, the product is most likely to not get marketed at its optimum. Hence the managing team must work very efficiently and must be well updated about the latest market news which will make them adopt flexible policies.

Can advertising help a small business?

Advertising is one of the key factors that contribute in the success of any business. It is publicity that takes the business to the world and brings the world to the business. Every kind of business needs publicity irrespective of its size. There are many ways to promote a small business like news releases, online public forums and referral programs. Advertising through newspaper is one of the good ideas. Newspaper is read by everyone so making your business public through it will cover more audience in less investment. A well written advertising piece once printed in the newspaper is bound to bring in many potential clients and customers to the business.