1 WORKING IN THE SMALL BUSINESS SECTOR X420 Discussion Session #82 THE WORLD OF SMALL BUSINESS. IS IT RIGHT FOR YOU? OR

THINK SMALL

What’s your definition of a small business?

There are many definitions based upon different criteria. Here are just a few: Type of Ownership Size of the Capital Investment Sales and/or Service Volume Number of Employees Number of Locations

My Preferred Definition: "A small business is a business which is independently owned and operated, with close control over operations and decisions held by the owners. Business equity is not publicly traded and business financing is personally guaranteed by the owners. (The business will have less than twenty employees).” ---Professors Scott Holmes and Brian Gibson of The University of Newcastle, Australia

TO REVIEW: Management and ownership are rarely separate. Control over business operations and decisions reside with one or two persons, who are usually family members. The equity in the business is not publicly traded. The level and number of formal contractual relations are kept at a minimum level. Personal objectives of owners will guide and directly influence business decisions. The personal guarantees and signatures of the owners are required to secure business debt, and limited liability is rarely if ever present.

What does it take to work for a small business? Probably the very same qualities it takes to work for a big business--- but more so. Good Communication Skills---both Written and Verbal Reliability and Responsibility Creativity Organization

The Question: IS IT RIGHT FOR YOU? The Answer: YOU’VE GOT TO FIGURE THAT OUT FOR YOURSELF. (Know Thyself)

THINK SMALL

THE BAD NEWS: 1.Nepotism 2.The owner retires and sells 3.The financial risk factor 4.The demands of work 5.You are VERY VISIBLE 6.In your face communications 7.Multi-tasking

THE GOOD NEWS: 1.Small firms are big employers 2.Decision-making and areas of responsibility are usually shared more freely than in larger organizations 3.Less people carry a broader range of responsibilities 4.In a small organization you are in the best position to take advantage of any new jobs that are being created 5.Constant challenge of MULTI-TASKING 6.You are VERY VISIBILE

DUE DILIGENCE: How long in business? Who owns it? If the business is family owned, are there relatives actively involved and employed in the business? Will the leadership go to younger, and possibly incompetent, members of the family? How far can I go with the company if I am not a member of the ownership family? What kind of reputation does the business have in the local community?

DUE DILIGENCE: Does it have non-family employees who have been with the company extended periods of time and have achieved high levels of responsibility and income? Check with the Better Business Bureau if the community has one. You can check with other members of the community, such as; Businessmen, Lawyers, Accountants, Bankers. Also, don’t forget that customers are an excellent source of information too.

Rules of Work not Taught in The Kelley School of Business You can go anywhere you want if you look serious and carry a clipboard. Important letters that contain no errors will usually develop errors in the mail. If it weren't for the last minute, nothing would get done. The last person that quit or was fired will be held responsible for everything that goes wrong.

Rules of Work not Taught in The Kelley School of Business When you don't know what to do, walk fast and look worried. Don't be irreplaceable; if you can't be replaced, you can't be promoted. Eat one live toad the first thing in the morning and nothing worse will happen to you the rest of the day. When all else fails, go to lunch.

The Four Questions What are the seven things I absolutely love to do? What are the seven things I am good at, have a talent for, or other people tell me I'm good at? What is absolutely essential for me to do in life? What do I feel I ought to do or would like to be doing?

Two After Thoughts "I am a great believer in luck, and I find the harder I work the more I have of it." ---Thomas Jefferson ___________________________________________________________ "If you think education is expensive, try ignorance." ----Derek Bok

“The Art of Living” A wise person once said, “The art of living is to make use of what you’ve got and use it to the fullest. Most people do not know what they are living for. But once you have found out, you have the jewel of life.”

“I HAVE ENOUGH FISH TO FEED MY FAMILY”

Evaluation Questions Use Strongly Agree---Agree—Disagree---Strongly Disagree---Don’t Know 1.I found the presentation of material easy to understand. 2.This session increased my knowledge on the subject presented. 3.I will be able to use some of the information from this session in the future. 4.The presenter was well prepared. 5.This presentation should be repeated in the future.