Organizing a small Company as a Large Company
This small business mistake is part of a collection excerpted from Gary Schine's book 101 Small Business Mistakes
Organizing a small Company as a Large Company
Some small business owners insist upon organizing their companies as if they were much larger than they really are. Organization, by definition, means to plan out ways to make things operate better and in harmony with other things. Organization that gets in the way of smooth operation, that impedes progress toward reaching a goal, or that prevents completing the day to day work at hand becomes over organization.
I have seen companies with four or five employees organized into divisions and lines of communication and authority. That is, one or two persons are in charge of one division and are not supposed to interact with people from another division. People report to a designated superior and are not supposed to talk directly to the owner. While this kind of organizing makes good sense in the case of larger companies, a firm with only a few employees, is almost always better off with a more casual organization.
Think in terms of getting the job done or in terms of reaching an objective. Organize personnel to the extent necessary to do that most efficiently. Do not organize solely to emulate a bigger company, to make yourself feel more important, or to create an atmosphere or image that is not in line with reality.
Other Business Mistakes and Misconcetions
- Failure to Prepare a Business Plan
- Myth-- A New Business Must be Based upon Uniqueness
- Overspending
- Momentum
- Starting a Business for Reasons other than Market Demand
- Entering into Partnerships without Clearly Defined Roles
- Not Putting Partnership Agreements into Writing
- Organizing A Small Company as a Large Company
- Misconception-- A Product Can Be So Good, It will Sell Itself
- Not Understanding Your Product's Benefits
- Believing That Experts Have Magic Answers
- Not Pricing Based on Benefits to Buyer
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