A few years ago, a large franchise association conducted a survey of its franchisees to find out what separated the best from the rest.


Was it advertising, marketing, location? No, no, and no. The missing piece is you.Steve Strauss Headshot SBC.png


It goes without saying that there are many factors that contribute to a business’s overall success. Having loyal customers, standing out among the crowd, budgeting wisely and great customer service all come into play. However, there is one factor in particular that is as important as it is overlooked and undervalued, and it is the one that the franchise survey revealed:


The most important factor in creating a great small business? Being a good boss.


Yep, that’s right. The common denominator between the franchises where profit was solid and consistent, where employees were happy and devoted, and where customers were plentiful and consistent was the quality of the boss. Great bosses create great businesses and bad bosses create, if not bad, at least mediocre ones.




What this means will probably vary somewhat from business to business and from boss to boss – after all, everyone has different values, visions, and personalities. Just know that the type of boss you are makes a material and lasting difference in the overall success of your business.


Think about it. Bosses that manage in a way that is inclusive, friendly, open, and fun (but not too fun!) will most certainly have a happier staff. And, typically, happier employees make for happier customers and happy customers mean a happy boss. It all comes full circle:



Happy boss = happy employees = happy customers = happy boss.




So how can you become the best boss possible and build that happy workforce? In short, it comes down to creating a great work environment, fostering a positive culture, and doing the little things.


For starters, it is important to realize that studies have shown that a more relaxed work environment is very closely associated with a positive culture. Micromanaging is out. Trust is in. Respect matters. Similarly, a more relaxed work environment lessens an employee’s fear of making mistakes, and that in turn can allow people to take risks, innovate and test out new ideas.


And yet, while creating an environment where employees feel relaxed is one of the most important things you can do as their boss, it is not the only thing; indeed sometimes, it really is the little things that count even more.


Employees, just like anyone, want to feel valued and appreciated.  Simple things like giving someone recognition when they have done outstanding work can be just the incentive someone needs. Offering bonuses when warranted doesn’t hurt either. People like to feel noticed and appreciated; honoring that need is vital in creating a positive, extraordinary work environment.


A famous example of a big company that gets it is Google. Google’s philosophy is “to create the happiest, most productive workplace in the world.” The Google offices typically include a lot of little perks that add up to one big, positive culture:


  • Outdoor work areas

  • Complementary food and beverage

  • Private study rooms

  • Team activities, personally designed desks, and more.


Of course, small businesses do not have the budget that Google does, but the guiding principle can still be emulated in any office. Creating a workplace where employees feel valued and nurtured, where they are respected and listened to, a place where it is fun and creative to work, and where little things are done to show them they count is what makes a difference.


Quick Tips to Start Building a Great Culture for a Small Business:


1. Hire the right attitude for your business. It all starts in the beginning. A bad hire can dampen the mood and rub off on other employees. Make sure the person is the right fit for your company. For example, you wouldn’t want an unfriendly person working at a family-oriented restaurant.

2. Meet with your employees. This is a great way to build relationships and to give feedback on their performance, but remember to focus on their strengths rather than their weaknesses.

3. Have fun outside the office. As a small business owner, you might not have the budget to spend a day golfing, but you can host a summer picnic or other budget-friendly activities. This gives employees the opportunity to foster relationships with you and each other. People like working with people they like.


Employee retention matters. And you don’t have to Google that to know it’s a fact.


About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.


Web: www.theselfemployed.com or Twitter: @SteveStrauss

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