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Small Business Scope.
Why Does It Matter?

And What Role Does Small Business Administration Play in Scope or Reach?

Defining small business scope is an important strategic business activity. How to identify and understand your small business administration goals and the impact on your business reach and range through free industry analysis?

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Why is it important to define your small business scope?

Because it is important to identify and understand your business reach and the extent of the market that your business needs to focus on; especially from a strategic management perspective and a small business administration perspective.

As a small business owner, with a clear understanding of your business scope, you will be better able to develop, and achieve, your strategic business plans.

First, what's the definition of small business (and the definition business model)? There are many. For the sake of simplicity: at least one employee (yourself) and less than 100. For those who are starting a small business or who already operate a small business, scope is important.

Small Business Scope Definition: Business Model

Some might argue that defining a small business as up to 100 staff is too big. Okay.

We could agree on that.

However there are companies with 99 staff who don't have staff departments (for example, to consider the role of human resources) or marketing departments, or quality departments, or customer services departments, or planning departments. And so on.

Understanding your business scope will help you build your definition business model. And your business model is necessary to understand your small business administration needs. These are all connected, and inter-related, activities. Like so much in small business management, you need to have an understanding, and ability, to manage many pieces of the 'puzzle'.

Or if they have departments for those functions, they might be large enough to handle the day to day activities (e.g. the Human Resources department is responsible for recruiting employees and providing management with support when firing employees is necessary) but doesn't have time to build the wage structure and compare to the outside world or they might not have time to write the job descriptions, etc. - the department might not be large enough to take on what might be called foundation or structural work.

Small Business Scope Definition

So, we'll define the scope of this website as one that meets the needs of businesses without large staff departments.

And since we can make our own rules, we will allow scope 'creep' (usually a negative connotation but in this case think of it as a positive). Allowing small business scope creep into how we've defined this audience for this site, allows us to define small in a very liberal way.

So, to conclude this example, we will use our definition of scope to define who this website is trying to reach:

As Voice Marketing Inc.,we specialize in providing business and marketing effectiveness services and strategies to small business owners. Helping you build your brand, and your voice, in your markets.

If you are considering how to start a business, strategic planning will help you better consider your business scope by focusing on marketing segmentation and target marketing.

From identifying who your market is, you can move to how you serve your market. Contact your trade and industry associations and ask for their most recent free industry analysis (most industries have this research available). Use that free industry analysis, along with other market research, to build your strategic plan, including your definition business model (for your business), and including your small business administration activities.

Scope or business range and reach will help you to better define how to manage, and grow, your business.

How do you define your small business scope?

What audience or market do you serve?

You must make sure you clearly understand your definition as you manage your small business growth. Defining your small business market will ensure that you are managing it.

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Feedback from Site Visitors:

Hello. I am a professor teaching Human Resources Management. You have an excellent page on writing business value statements entitled your "Value Statement: Develop a Definition of Values in Your Business". I would like to use this page (giving full credit) to teach my students how to write good business value statements for the HR Strategic Plan they are required to prepare. Thank you. Richard C. Brocato, Ph.D. Professor of Management, Maryland, USA

(Note from Kris: I was happy to give permission to use as the source was fully credited.)

Hi Kris, I really appreciate your collection of business resources on your site; it provides a fantastic outline for writing a business plan as well as the detailed information needed to prepare the content for a great plan. Thanks, Pierce, USA

Hello. I would like your permission to quote your website within my paper for a marketing class I am taking to earn my Bachelors in Business Management. I am currently in a marketing class and I find the simplicity of your definitions and the ease with which you convey the ideas and terms of marketing to be very helpful. Thanks! Amanda, USA

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