Performance Measurement Defined for Small Businesses Performance Measurement in Small Businesses The role of performance measurement in small businesses is primarily one of learning; providing the small business owner with the required information to navigate towards desired end results, as reflected in a small business’s strategy. Similar to the principle used by ants, who leave pheromone trails to assist each other in navigating towards the food source. Performance measurement results should travel through the small business, facilitating communication, providing a base for analysis, synthesis, and ultimately decision making across all levels of the small business. If you as a small business owner don’t measure …Read More →

Where Performance Measurement Fits into a Small Business Integrated Performance Measurement? Performance measurement starts before your small business is in business. As indicated in the diagram below, it’s an integral part of the strategic, tactical, and operational planning processes. Goals, objectives, and operational targets are all measures of performance within small businesses. Measuring business performance to evaluate and control the achievement of these goals, objectives, and targets are critical for small business success. The challenge facing small businesses is how to match and align performance measurement with business strategy and culture. Furthermore, the type and number of measures to use and the balance between theRead More →

The 6 Key Leadership Behaviors of Successful Small Business Owners What is Leadership Behavior? Leadership Behaviors are the way that you act or conduct yourself as a small business owner. Effective leadership behaviors are the actions you take to develop, motivate, empower, and assign meaningful work to your employees that causes them to work willingly towards achieving your business’ goals. Your leadership behaviors directly impact the social-emotional reactions of your employees and are the difference between the success and failure of your small business. By developing strong positive leadership behaviors, you will build proactive management and operative teams that are trusting, flexible, accountable, and passionateRead More →

Small Business Failure Checklist You need to use our Small Business Failure Checklist, since: • 20% of new small businesses fail within the first year of operation, • Half of all small businesses fail within the first 5 years, and • Only one-third survive longer than 10 years. Business failure is almost always attributable to the entrepreneur that started the small business. As a small business owner, you must be aware of challenges you are facing; why small businesses fail; and when to get help to prevent it. Business failure does not only mean going out of business. It can also mean your business failsRead More →

Definition of Business External Environment The Small Business External Environment can be defined as the events, forces, conditions, and entities surrounding a small business that influence its activities, choices, and decisions. The external factors affect a small business’s abilities to be successful and build relationships with customers. The external environment of a small business has two components, commonly known as theMacro-Environment and Micro-Environment. What is the Micro-Environment of a Small Business? The small business’s micro (external) environment is formed by the individuals and factors within the immediate area of operation that directly influence its business operations and ability to serve customers. There is direct contactRead More →

Annuities as an Investment Option for Small Business Owners  Is a Stock Market Correction Imminent? Are you as Small Business Owner concerned about your retirement savings because of stock market volatility? Are you considering Annuities as an Investment Option? Consider that in 2019, the current 10-year bull market is the longest on record. Institutional investors predict its end within the near future, with a 40% to 70% retracement (fall). Take note, that if the stock market drops 50% you need to make a 100% to get even. If you need to withdraw money while the market is low or recovering, which could take years, youRead More →

What is a PESTEL/PESTLE Analysis? PESTEL or PESTLE Analysis is a strategic business planning or market research tool for Small Businesses Owners to identify, analyze, and monitor the key macro external factors that impact their businesses now and in the future. The macro external environment can be defined as the global business conditions, entities, events, and factors within which a small business operates. The PESTEL framework considers the Political, Economic, Social, Technological, Environmental, and Legal external factors as a basis for analysis and how they affect the probability of  small businesses being successful and profitable. PESTLE analysis helps you identify business opportunities and threats withinRead More →

What is the Strategic Planning Process for Small Business Owners? Strategic planning is a systematic process of envisioning a desired future of you small business and translating this vision into broadly defined goals and actions plans to achieve them. It aligns your resources to carry out the action plans. In addition, strategic planning ensures that everyone in your small business is on the same page on the direction and future of the small business. Read more about strategic planning here: Basic Strategic Planning and Key Statements for Small Businesses. The outcome of the strategic planning process is normally documented in the business plan: Read OutlineRead More →

What is Small Business Market Research? Market research for small businesses is the systematic collection, analysis and interpretation of data and information about consumers, competitors and the effectiveness of marketing initiatives. Comprehensive market research provides small business owners with an accurate view of the prevailing and future marketing conditions to address in order to solve the marketing challenges facing them. Market research is the key to formulating market segmentation and market differentiation strategies. Why do Market Research Market research helps small business owners to: Make well-informed decisions about products and services, set achievable targets and develop effective marketing strategies for business growth. Understand your target market,Read More →

In this blog post you will learn about basic strategic planning for small businesses and the advantages. Also covered are the key small business statements with an example of each. This includes the small business vision, mission and value statements. What is Strategic Planning? Strategic planning for small business owners is a systematic process of envisioning a desired business future (end state) and how to get there. Within the strategic planning process, you decide on your small business direction, broadly define goals/objectives and set priorities. In addition, you identify and align available resources to accomplish the sequence of actions necessary to achieve this. Basic strategicRead More →