The Organizational Structure of Small Businesses

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The Organizational Structure of Small Businesses
Managers or trusted employees often perform basic accounting and bill paying functions in small businesses. (balancing checkbook image by palms from Fotolia.com)

Small business organizational structure is typically flatter and has less depth than the organizational structure of larger corporations. Operating a small business is usually more owner-manager intensive, and responsibilities centre on key individuals who perform leadership functions in the business.

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Sales and Service

Sales and service are necessary to small business, just as they are to larger operations. Small businesses rely more on successful delivery of marketing and sales messages by staff to customers because they usually lack the buying power of larger companies to compete on costs and pricing.

Trade Operations

Small businesses must manage inventory carefully by finding good suppliers, negotiating deals and ordering products, and merchandising. Owners or managers often perform crucial buying and ordering functions, but regular employees who perform receiving and merchandising at small businesses are often the same employees that deliver sales and service.

Administrative

Active owners or managers sometimes perform basic accounting, bookkeeping, bill paying and money management in very small businesses. Regular staff may do bank deposits and inventory checks, along with common cashiering. Larger small businesses may use external providers for accounting and recordkeeping.

The Organizational Structure of Small Businesses
Managers or trusted employees often perform basic accounting and bill paying functions in small businesses. (balancing checkbook image by palms from Fotolia.com)

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