Business success demands business knowledge. Six years and $60,000 worth of business education is not required but it is wise to have such a trained expert on your speed dial. MBA ASAP is a series of blog posts by such an expert to share the fundamentals of building your own brand of success. Small business stakeholders is one of the most misidentified terms among entrepreneurs. Failure to name your stakeholders will likely mean failure of your business.
The proper definition of a stakeholder is an individual or group who are affected by or affect your company’s performance. There is a common phrase among entrepreneurs. “Those that have the gold make the rules.” Small business stakeholders is a different group when compared with a corporation’s stakeholders. We often define interested parties of small businesses as the “big three”. Consider these three stakeholders, and their unique interests, in your small business:
Some experts argue that there is no profit in a small business. The owner of the company pays all the bills out of the company profits. What is left over is what the owner gets to keep in compensation for his time, hard work, etc. The sum of those calculations is always zero. An owner is obviously a stakeholder. His interest is in making a profit, improving his lifestyle, serving the community, leaving a legacy.
An employee of the small business is certainly a small business stakeholder but has a different set of motivations. The employee needs compensation to maintain his lifestyle etc. Research shows that money is often the primary motivator. The employee is interested in status, learning experiences, security.
Never forget that the most important small business stakeholder may be your customer. The customer needs more than just a place to buy goods. Loyal customers have countless choices. They rarely purchase an item at the place is cheapest. Customers want affinity with the brand, they want relationships with the service provider, and they expect excellent value for their hard-earned money.
Understanding small business stakeholders is a fundamental step in your strategic planning model. Properly identify the people interested in your business and significantly raise your chances of sustainable success.
Who are your small business stakeholders? How do you identify who is most affected by your entrepreneurial dream?