Business Steps for Small Enterprises
To Start your Small or Medium Family Business / Enterprise
Manage Your Threats and Risks
When considering setting up a new business, a small business entrepreneur deals with business how to start questions and, of course, important steps to business (starting steps to business).
One of the important small business steps is the writing of a business plan, dealing with numerous aspects of setting up a business and business management. A small business plan should address at least the following very broad areas (use it as a small business checklist):
- Business concept and model
- Business principles and ethics
Among other things, a business owner also deals with issues like how to make his small business successful and develop a competitive business strategy.
Nevertheless, when dealing with critical steps to business, entrepreneurs normally are not aware of or dealing with two specific small business success factors namely:
- The benefits of starting a family enterprise
The notion today is that there is no place for family enterprises in the world and that centralized and managerial business models are far more effective and profitable business models in society.
In his book Dynasties – Fortune and Misfortune in the World’s Great Family Businesses David Landes clearly proves that this is not the case. Contrary to common belief, the majority of businesses across the world are family businesses (small to large corporates):
"In the European Union, family firms make up 60 – 90 percent of businesses, depending on the country, and they account for two thirds of GNP and jobs. In the Unites States in the mid-1990s, more than 90 percent of firms were family units, accounting for more than half the country’s goods and services; further one third of the Fortune 500… were said to be family controlled or to have founding families involved in management."
Landes quoted Business Week in further proving his case. Family enterprises "averaged 15.6 percent return, as against 11.2 percent for non-family firms, with annual revenue growth at 23.4 percent against 10.8 percent."
Clearly, you need to consider getting your family involved in your business plans and ideas as a family is a solid foundation for a business. Normally, family members do not have employee attitudes like “I am just working here.” Families are far more committed to put in more than the average employee (including salaried executives and directors).
Even more important is that you will have no other choice to utilize family resources to fund your new venture - as it is virtually impossible to obtain credit in this recession. The credit crunch will actually serve as a booster, strengthening family enterprises all the more...
- Small business risk management during normal and difficult economic times
Another extremely important point on your small business checklist should be to minimize business risks as far as possible so as to avoid business failure. Reduce business risks as far as possible. By doing exactly that, you will be in a better position to maximize profit and to make your small business profitable. As a result, you will also be able to survive difficult economic times.
For more information about the benefits of a profit protection methodolgy and the starting steps to business how, please visit: http://www.business-around-the-globe.com
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