3 Key Components Every Small Business Needs To Have

Small business owners usually become so busy that they tend to forget about the key structural components of their business during their early stages of life. This could be blamed for a variety of reasons such as lack of time, a certain aversion for structure, or you simply do not realize its importance, however, this could often mean the difference between long-term success and failure. The main point here is that these main components are what create clarity for everyone—seller and buyer—make it easier to engage, and empower employees. There are actually several building blocks of a small business, however, in this article, we will only be covering the first three components.

1. Mission, vision, and values

Are you also one of those people who think that having mission, vision, and value statements are only for the likes of big companies, and not for smaller ones? Well, throw away that notion because that is absolutely false. These three concepts serve as your guiding principles that will define the purpose and function of a business that will drive its employees to do their best. Some people are still confused about what these three statements truly mean.

A mission should be what your business does. It is a factual statement with a simple but direct to the point kind of structure. A vision tells what you want your business to be in the future. It has this inspiring and engaging tone that portrays the purpose and meaning of your employees. As for your values, these are the main beliefs of your company that everyone should live by every single working day.

2. Official behavior standards

Anyone could safely assume that common sense tells people what are the acceptable things in the workplace and what is not. However, the truth is, common sense is more on subjective perception. In other words, if you do not spell out what is considered good behavior, not everyone may know what is acceptable or not as each of us has our own set of ethical beliefs. The solution here is to create a company handbook that contains the standards of work behaviors. This document should contain all things associated with behaviors while working including interacting with clients and fellow employees, having a positive disposition, and using phone and customer etiquettes.

Once everyone has officially agreed on the standards, then you can have your own governing laws in your company to hold people accountable. This document will also help you keep your employees in their right behavior and promote a peaceful and good working environment that will attract customers to keep coming back to you.

3. Clear goals relayed to all employees

Often times, small business owners set goals that are “too achievable”, or worse, no goals at all. One of the main reasons for this is they have probably created “too imposing” goals before and when they failed to achieve those, they were criticized by the public. Thus, explains why some of them chose to play it safe. Having said that, notable researchers have revealed that the best companies are usually those that set bold goals. Of course, having audacious goals is not enough. You also have to break those big goals down and narrow it into smaller ones and make sure that all your workers understand what they have to do in order to achieve those goals. This method usually works best when goals are metrics-based, objective, and measure so that employees know which areas they need to direct their focus on. To do that, it is imperative to communicate clearly to your employees the goals you are intending to accomplish. In short, communication should be crystal clear, consistent, and often.

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