If your aim is to improve your small business’ efficiency, lower costs, increase product quality and customer satisfaction then, ensure you are applying a technique called “Best Practice for Small Business”. In this article, we introduce you to the term “Best Practice for Small Business” and its meaning whilst presenting some useful examples.

So what is Best Practice for Small Business?

The term refers to:

· The process of acquiring the best strategies, ideas and methods being used within a certain industry (usually by your competitors)……..
· ……and applying them as part of your business process to improve your business by solving a specific problem or enhancing part or your whole business process.
For the purpose of this article, we will focus on the small business scenario.


Searching out, studying, and implementing best practices can be carried out by adopting continuous improvement programs such as Total Quality Management (TQM). Although TQM focuses mainly on the production of quality goods and the delivery of first-rate customer service, it also extends to other areas within the business. Implementing “Best Practice” entails considering and applying problem solving ideas that have been previously tested and successfully applied by other small businesses.


Examples of Best Practice for Small Business where quality improvement programs can be adopted include:

· In production areas: fabrication and assembly in small manufacturing enterprises.
· Point of Sales transaction processing and billing.
· Order picking and shipping/delivery at catalog (mail order) business including small home-based enterprises.
· If your business is a service provider, Best Practice can also be applied to customer contact interfaces,
· Human Resource Development: improving the recruitment of new staff process, applying better employee education and training, adopting appropriate links between employee performance and recognition. Promoting employee well-being and increased morale.
· Research and Development.
· Accounting (payroll, accounts payable/receivable) and records (filing, backing up data, etc).
· Finance: adopting better cashflow and budget projections, together with better taxation planning and compliance strategies.

It important to note that in order for Best Practices to be effective by continuously seeking and applying better performance of every task and value-chain activity, it must also instill a total quality culture within the enterprise, irrespective of whether it is a “less than 500-2” firm or a one employee business.

Other related articles:
· Discover the 4 Key Benefits of “Best Practice for Small Business”
· 7 Easy Steps for “Best Practice for Small Business”

Claudia E. Alcalde Strachwitz - MBA