Small Businesses: Important Information for Small Businesses

Small Businesses:

Important Information for Small Businesses about Exporting Products:

One of the most important aspects of any business both small and large is exporting products since it leads to business growth and increased profits. For many small businesses, it's crucial to export products because of the many available opportunities in foreign markets. However, it's critical for a small business owner to collect some necessary information before deciding to export the company's products. First, the small business owner needs to conduct a careful analysis of the merits and demerits of expanding into new markets. Information regarding the benefits and disadvantages of expanding into foreign markets is crucial because it determines the available business opportunities and help in developing a global marketing plan.

Secondly, understanding financing and pricing issues regarding global trade is an essential element for a small business to develop a successful exporting business. In order for a small business owner to effectively execute his/her exporting strategy, he/she needs to gather information on how to secure financing for exporting initiatives. Finally, this business owner needs to collect information about markets it seeks to venture into. This information is collected through conducting a market research and helps the business to make informed decisions about its production, marketing, distribution, and pricing strategies.

2. Riskier Markets for Small Businesses:

Countries that are considered as emerging markets such as India, Brazil, Russia, and China are the riskier markets for small businesses to enter. While these countries have fast-growing economies, they are riskier for small businesses because they are less-mature economies. The degree of political, economic and cultural risks is high in emerging markets as compared to large markets with more stable investment opportunities. Consequently, emerging markets are riskier for small businesses because of their increased risks that may significantly affect business opportunities and investments as well as lesser maturity. Information regarding the political stability, financial risks, and cultural differences can be obtained from government databases and conducting market research.

3. Small Businesses and Maslow's Hierarchy of Needs:

Through the application of Maslow's hierarchy of needs, a small business owner can create a better working environment for his/her workers and satisfy their needs. While working with employees through this hierarchy of needs, the small business owner will first meet the employees' physiological needs. This is achieved by distributing competitive financial compensations that act as a source of reliable income with which employees can meet needs like food, shelter, water, and clothing. For the owner of a small business, satisfying these physiological needs at higher levels is critical to successful competition with large businesses.

The second most important aspect of applying Maslow's hierarchy is satisfying employees' safety needs. This safety needs include job security, physical health, and private property protection and are crucial factors when working with employees. The business owner can satisfy these needs through two major ways including the use of words and actions that reinforce employees' safety. Additionally, the business owner satisfies employees' safety needs by providing comprehensive rewards packages.

Thirdly, a small business owner can use Maslow's hierarchy of needs to meet the employees' belonging needs through creating a warm company culture centered on respect. The welcoming culture can be created by giving employee time to socialize and permitting them to develop relationships. The esteem needs of employees can be satisfied in a small business by providing them with personally benefiting challenges and publicly rewarding high performers. Finally, the self-actualization needs of employees can be satisfied by the business owner by establishing wide-ranging employee development programs and offering career development opportunities.

4. Examples of Stress, Eustress and Distress:

Stress is the basic stimulation that an individual experiences whenever he/she perceives anything that is threatening to him or her. Examples of stress can include an individual's difficulty in securing a new job and the pressure to complete a certain task within an urgent and strict deadline. However, stress is divided into two major categories i.e. eustress (positive form of stress) and distress (negative from of stress). Eustress is a positive kind of stress that improves a person's performance and stimulates feelings of excitement due to the person's ability to adapt to the stressful element. Examples of such kind of stress include receiving a job promotion or receiving a salary increment. On the contrary, distress is negative stress characterized by unpleasant feelings and anxiety or concern with examples like losing a job or money problems.