The reasons why small businesses succeed (or not)

American management system has been admired and emulated around the world. This system is characterized by two characters in the American soul: (1) enthusiasm for the future, and that is better, and (2) openness and willingness to change in order to achieve this objective.

No company in the world, it is better or more fruitful in the creation of new businesses than the U.S. capitalist system, but often we are so busy commercializing ideas and starting new businesses, which have no time to learn the basic principles of good management, which were developed by our companies.

Many entrepreneurs are technical experts in what they do, but starting a company without any formal training or experience in the field of management and principles. The "management" we mean business here successful management of non-technical side of the business, the "back room" activities. As a result of poor management, many SMEs are in the early years. They fail not because the weakness of the product or service to the concept, but because the industry is not well managed in the back office.

When there were business or become a certain level, management techniques must change or the problems. For many small businesses this level is $ 1.3 million in annual sales or 5-15 employees. Sometimes it is less critical, and sometimes it is better if it occurs, the owner or operator of small businesses must evolve, morph or otherwise change things from the manager of people and technical experts for strategic thinkers.

This is often a difficult task because habits ingrained over time, but not to grow as a manager is great, perhaps the main reason why companies will falter, stagnate or even collapse under their own weight.