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Small Business Management Theory and Primer 

Small Business Management Theory (from my perspective): In a Nutshell 

Small-business management is "a beast of another color" if you have had experience with management in a larger organization. Small business management is about diversity of knowledge and responsibility rather then specific responsibility. When you are the manager of a small business enterprise you make all or most of the decisions, based upon "what you know", and accept responsibility for the outcome. 

Many people think that being in business for themselves would be ultimately "living the American dream". They frequently do not anticipate the long hours, the stress involved, and the necessity of understanding so many different aspects of what it takes to develop and grow a small business. Small business management involves every aspect of the business including knowing the product involved and how to bring it to the consumer, how to provide bookkeeping  and appropriate recordkeeping, advertising and marketing, human resource management and the related laws and regulations, and usually the individual usually has relatively good "people skills", and is usually very self-motivated. Small business management involves a very different "skills set" from what most people are used to.  It involves the "wearing of many hats" as well as the desire, motivation, and perseverance necessary to deal with many problems without giving up or losing your focus. Small business management in a nutshell, means having the right skills and temperament, knowing and believing in yourself and your product, and having the strength of mind and character to maintain your focus and to be able to “hang in there” when the going gets rough.

What is the most difficult aspect associated with small business management? 

Small business management requires a diversity of abilities and somewhat flexible temperament.  Many people have good technical skills related to specific product areas but that that is not make them a good manager and independent business person. Most people do not realize the diversity of abilities necessary to be successful in small business management.  Also, many people do not recognize the importance of strength of character in addition to flexibility.  Effective small business management incorporates a value system of honesty and integrity in providing "product value” for a reasonable price.  It does not mean taking advantage of people "because you can". Effective small business management involves taking a long-term approach, in doing things right for the right reasons rather then trying to get away with something in the short-term.  Without people looking over your shoulder, and monitoring the integrity and character associated with your decisions, many a small business manager will take the easy way of exploiting situations and people, and conducting business in an inappropriate or dishonest manner. My belief is that truth always comes to the surface eventually.  Effective small business management involves living out a belief system based upon appropriate values. 

In summary, profitable and effective small business management involves an enormous diversity of personal traits and areas of knowledge,that incorporate appropriate values into the conduct of business. Many small businesses management systems do not incorporate these ideals of knowledge and character which will propel them toward long-term success. Many seek and take advantage of short-term gains at the expense of their long-term goals and ultimately, eventually, see their demise.

By Paul Susic M.A. Licensed Psychologist Ph.D. Candidate President/CEO Susic Psychological Consulting P.C.

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