Small Businesses, Get Bigger.

Companies that sell products to you get to IPO creating millionaires, and you remain small.

Consultancies that sell services to you become filthy rich, and you remain small.

Employees who use you as an experience-providing machine get to higher packages, and you remain small.

And there are costs associated with being small.

You would get capital at a higher interest rate, if you are from the lucky half that gets it.

You would have bargaining customers who would start negotiations at 60% of the offer price, and hardly pay on time.

You would have vendors who would force you into taking packages where a lot of features/functions/benefits are never used.

You would get leftover employees rejected by big brands, who would use your tenure as building credentials to be there.

It is in the interest of those sitting at the top of the pyramid that you remain in surviving mode throughout your business lifecycle to never challenge their monopolies.

This. Is. Unfair.

Small businesses are like close-knit professional families where every success is collectively celebrated, and every setback threatens the livelihood of all.

The only way out of the vicious cycle of limited-resources — >limited-return — >limited-resources is your unlimited ambition.

Necessary, but not sufficient.

First, let’s talk about the necessary part.

You might be small in terms of revenue, area serviced, or number of employees, but you should never be small in terms of ambition.

Starting small is fine, but ending small is not.

Small is the starting phase of your business journey, which should build the foundation for something much bigger. Hopefully much much bigger.

And now comes the sufficient part. Scaling.

Only a system with well-defined processes can scale, not an ad-hoc firefighting hustle.

And to define a system, you do not need the latest AI-wielding tool, or popular ERP/CRM/PM/HRMS software suggested in an online blog that promises to solve all your problems magically.

It can be as simple as a handwritten manual or an MS Word / Google Doc file.

And as a business owner, you can NOT delegate it. Your business is unique, and nobody knows it better than you.

Ideally do it on an off day when you can focus deeply without getting side-tracked by daily challenges.

Go as deep in your system as you can. From employee sick leave to client escalations, cover it all.

The more details and numbers you add to your processes, the easier it becomes to set expectations and measure deviations.

For example. “slight deviation in check-in time is acceptable”, is better written as “up to 30 minutes of delay is acceptable, else please notify your manager with estimated delay to plan work accordingly”.

Once you have a system in place, time to audit it for improvements. You don’t want to replicate inefficiencies.

Set benchmark using Pareto’s principle. Target 80 percent of business operations to have a definite input/output.

And you would have seen that simply documenting things had given you a lot of ideas for improvements.

But resist the urge to throw people or tools at the problems.

Take a few deep breaths. Calmness is a superpower.

Categorize problems in high and low-priority buckets. Clearly separate blockers from speed-breakers, and focus on blockers first.

See how can they be solved with better coordination, preparation, training, or automation.

Any change might get some pushback from the team, so it is important to get their buy-in by being transparent with them, and listening to their concerns.

If you find some employees against the new system, that means they are purposefully trying to avoid being accountable. They should change, or be changed.

Now you have a robust system with a committed team. Time to scale!

Efficiency will improve your bottom line. Reinvest gained resources in team, tools, marketing, and expansion. Ideally, in that order.

Once you get into this virtuous cycle, it will keep getting bigger till you remain committed to the system.

Every year (or every 6 months if you are in a fast-moving industry), do a full system audit to identify blind spots and outdated processes.

Sticking to the system and not cutting corners will require discipline. Lead by example.

While being Apple or Walmart is a rare event with many factors outside your control (called luck), there is nothing stopping you from reaching a level you rightfully deserve.