Characteristics of a Small Scale Business By Matthew Schieltz, eHow Contributor A few examples of small-scale businesses include a flea market

or shopping mall booth, a consultancy business, or even a computer repair shop that moves into retail space. Small-scale businesses typically consist of one owner and his shop. The business owner sells products and/or services supplied by a franchise company or created by the owner himself. This type of business is flexible, which means that the owner can generally set hours at any time to accommodate customers. Startup The initial start-up costs for a small-scale business are usually pretty low, depending on the specific business model and what products/services are being sold. A small-scale business selling retail goods at flea markets will only need require funds to purchase initial inventory and pay for a spot at the flea market. Likewise, the owner of a small business selling homemade goods only needs to worry about purchasing materials to make the goods. Small-scale businesses that offer consultation services, such as tax preparation or nutritional services, also have very low overhead costs. Portability A small-scale business is generally portable, making it easy to set up and tear down. Holiday gift shops that sell candles and novelty items are a perfect example of portability; all that's typically required is empty space at a shopping mall with a small table or booth to display products. Small-scale businesses also need a way to accept payments. Small credit card terminals and portable cash registers are perfect for these needs. Employees Usually very few employees, if any, work for a small-scale business. This type of business may have one or two employees for busy times. Typically, however, such businesses cannot afford to pay wages since a majority of the profits goes back into the business or pays for the owner's personal expenses. As such, owners often staff small-scale businesses themselves, allowing them to keep whatever profits they make.

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What are the essential characteristics of Small Scale Industries? By Arkupal Acharya Business Following are the characteristics of some industries which identify them as small-scale industries: 1. Labour intensive: Small-scale industries are fairly labour-intensive. They provide an economic solution by creating employment opportunities in urban and rural areas at a relatively low cost of capital investment. 2. Flexibility: Small-scale industries are flexible in their operation. They adopt quickly to various factors that play a large part in daily management. Their flexibility makes them best suited to constantly changing environment. 3. One-man show: A small-scale unit is generally a one-man show. It is mostly set up by individuals. Even some small units are run by partnership firm or company, the activities are mainly carried out by one of the partners or directors. Therefore,' they provide an outlet for expression of the entrepreneurial spirit. As they are their own boss, the decision making process is fast and at times more innovative. 4. Use of indigenous raw materials: Small-scale industries use indigenous raw materials and promote intermediate and capital goods. They contribute to faster balanced economic growth in a transitional economy through decentralisation and dispersal of industries in the local areas. 5. Localised operation: Small-scale industries generally restrict their operation to local areas in order to meet the local and regional demands of the people. They cannot enlarge their business activities due to limited resources. 6. Lesser gestation period: Gestation period is the period after which the return or investment starts. It is the time period between setting the units and commencement ol production. Small-scale industries usually have a lesser gestation period than large industries. This helps the entrepreneur to earn after a short period of time. Capital will not be blocked for a longer period. 7. Educational level: The educational level of the employees of small industries is normally low or moderate. Hardly there is any need of specialised knowledge and skill to operate and manage the SSI. 8. Profit motive: The owners of small industries are too much profit conscious. They always try to keep high margins in their pricing. This is one of the reason for which the unit may lead to closure.

Customer Loyalty = Brand Loyalty By Bob Grant, President, Grant Marketing In todays weak and volatile economy, it may be prudent to consider customer loyalty. It is often said that it is easier and less costly to keep a customer than to acquire a new customer. Customer loyalty is not loyalty to a discount or a deal. It is the loyalty to the brand and to the company. Brand loyalty is the customers trust that the brand will continue to deliver on its promise to the customer. How do you maintain that customers loyalty to the brand? 1. Communicate - Communicate through research - Understand the key to the needs and benefits required by customers by conducting surveys on why they will continue to do business with you. A recent article in Marketing Sherpa illustrates how a company, Veritude, was able to increase customer loyalty by surveying why customers would recommend Veritude to others, and also determine where Veritude might make improvements with its relationships with its customers. Stay in touch - Through newsletters and e-newsletters, phone calls and visits. 2. Customer Service - Be sure those who interface with customers present a positive experience in dealing with your company. For those who have an unpleasant experience, an astounding 60% of customers will terminate his or her loyalty to your brand in order to get better or more reliable service elsewhere. Customer service is relationship marketing. 3. Trust - According to an Accenture consumer study on loyalty, consumers surveyed place a high degree of importance in a companys credibility and in knowing that a companys offerings will perform as promised. When asked why they continue to purchase products or services from a particular company, 45 % of respondents said its because they have grown to trust the companys products or services. But trust can be broken easilysuch as when a company solicits feedback from consumers on how to improve its products or services, but seemingly fails to act on the input consumers give. 4. Loyalty programs - Is there a place for loyalty programs in your companys marketplace? Of those who belong to a frequency program, 43% say that they believe the program causes them to purchase more from that brand. There are other ways of adding value to customer experiences, and every company needs to determine what kind of a loyalty program works best for its kind of customer. When sales are soaring customer loyalty does not seem to be important, but solidifying your customer base in good times as well as bad is fundamentally sound business strategy.