Entrepreneurial Motivation
Everyone wants to snag some cash, but often, smaller reseller firms pop up because the business owner brings a unique set of expertise, market knowledge and an entrepreneurial spirit that makes them well-qualified to attack a segment. But, on a personal level, the study finds that many entrepreneurs strike out on their own because of a desire for “personal freedom” and “maintaining work-life balance.”
Growing Pains
As companies grow, researchers find that personal motivators like work-life balance fall to the way side, and business focus becomes more about growth and increasing productivity within cost restraints.
Growth Presents Challenge and Opportunity
"Growth unleashes immense opportunities and challenges for small business owners," explained Mark D. Wolf, director of The Guardian Life Small Business Research Institute. "As companies move beyond a small, tight-knit team and become larger, more complex organizations, they increasingly look beyond their own expertise for information, operational support and professional guidance."
Seedling Businesses Revolve Around the Owner
Small start-up businesses of two to nine employees tend to revolve around the owner and typically generate far higher revenues per employee than ones with 50 to 99 employees – between 100 percent and 400 percent higher on average. How does your business compare?
Larger Number of Employees Means a Greater Focus on Growth
Owners of larger firms tend to focus more on growth and expansion. Research finds that of owners of companies with 50 to 99 employees, 53 percent say they plan to expand their businesses. Juxtaposed, 58 percent of businesses with less than 10 employees say they “are just trying to maintain business as usual.”
Focus Shifts to Employees and Management
As small businesses grow, management and employees begin to take center stage in importance to the business, as opposed to the original Principal of the company. SMBs begin to take a close look at adopting effective practices for finding, motivating and retaining the best employees.
Adding Necessary CAPEX
During exponential growth, costs increase without a doubt. SMBs begin to spend and rely on necessary professional services like accountants, lawyers, finance and insurance as well as build budgets around focusing externally, instead of internally, with directed spend on marketing, online presence and membership in professional and industry associations.