Small business is a broad term encompassing all privately owned and operated companies that have fewer employees or revenues than their larger counterparts. These firms can range from solo entrepreneurs and family-run shops to growing companies with hundreds of employees. Regardless of size, they play an important role in innovation, job creation, and economic resilience.
In the United States, the Small Business Administration sets size standards on an industry-by-industry basis, but generally a small business has fewer than 500 employees or less than $7.5 million in revenue. Meeting these size standards enables a small business to qualify for federal contracts and other resources.
Many small businesses are family-owned and operated, and the owners often work in the business full time. This close connection to daily operations makes it harder for them to take steps back and see the bigger picture. That’s one of the reasons it’s so important for small business owners to be well organized and to use tools like Trello, Microsoft Planner, Notion, or Airtable.
Another challenge for many small businesses is finding the time to continually market their business. They need to focus on running the day-to-day operation and interacting with customers, which leaves them less time to focus on marketing efforts. Low sales is a major reason that small businesses fail, and it’s usually the result of poor marketing.
Finally, small business owners must be ready for constant change and innovation. Successful companies are always looking for ways to improve their products, services, and processes. Companies that don’t innovate risk becoming obsolete or suffering from a lack of relevance. Blockbuster Video, Kodak, and Borders Bookstore are examples of once-thriving companies that failed because they became complacent and didn’t keep up with customer demands or technological advances.