Working Together in Small Businesses.
There are a lot of reasons why people choose to start their own business. However, when you talk to business owners, they usually have one thing in common. They value their independence. They appreciate the ability that owning a business provides them when it comes to setting their schedule, choosing who they work with, and being able to enjoy the rewards that come from doing their own hard work. While independence has its benefits, in the world of business, independence can also sometimes be a challenge.
- One area where independence can be challenging is in the realm of marketing and purchasing.
- A small business owner is usually not going to purchase in sufficient bulk to allow them to receive some of the discounts that distributors provide to their larger customers.
- This is where some companies that work with multiple small businesses come into picture.
- These companies work on that idea that if multiple small businesses work together, they can purchase products with the same buying power and in the same volume that large-scale multinational companies do.
- When small business owners work together in buying items, they are able to leverage their superior numbers and higher sales volume to negotiate with vendors.
- This in turn allows smaller businesses to provide their customers with the same cost-saving benefits that larger businesses do, while at the same time maintaining the down to earth feel that comes from working with a small business.
- Many business owners who value their independence see the benefit of working with small business owners.
- In addition to helping them increase their profit margin by allowing them to sell products at a more competitive price, working with other small businesses also allows them to minimise the cost of everyday business expenses associated with running a business.
- The money that the small business owners save by purchasing products at an induced price, having access to services that are usually reserved for large-scale businesses, and being able to offer their clients quality products at a competitive price, can then be invested back into the business, allowing their business to grow and become more profitable.
- In larger organisations, the performance of critical functions is typically divided among different employees.
- In small businesses with limited human resources, it’s not uncommon for a single employee to be solely responsible for completing multiple tasks in a critical process.
- However, failing to properly segregate duties can result in a greater risk of errors or fraud.
- Working together in small businesses reduces the risk associated with human error.
- Generally, when small businesses work together, assigning different people the responsibilities of authorizing transactions, recording transactions, maintaining custody of related assets, and reconciling accounts provides for more effective internal controls.
- Each employee of every small business has specific job responsibilities, preferably defined in writing.
- Employees holding same job responsibilities in different businesses get a chance to improve their skills when they work together.
- Effective policies and procedures can help you to align your business objectives with businesses that you are working with
- This helps establish best practice operating procedures, which, otherwise, are one of the most underused control tools.
- If you think your business processes are uncomplicated and well known by management and employees, working with other businesses brings even more learning for your business and employees.
- You may even increase value of your business by creating written policies and procedures learnt from working together with other small businesses.
- Refreshing knowledge and reassigning tasks and duties within the business to other appropriate individuals can significantly help to mitigate risk in many cases.
If you don’t have a website for your business yet, your next step must be to get a website now. This is your home base and all of your internet endeavours will run to and from it. As a starting point, you can contact an online media consultant to help set-up the website per your requirement. Selecting a domain and figuring out a quality hosting plan to get off the ground, the design and layout of your site, all of these can be taken care of by HyperEffects. At the end of the day, every business owner wants a business that is going to be successful. Let your business provide for you and your family.