When you choose to operate your own small business, you are probably thinking primarily about your own interests. You want to do work that you enjoy and you want to be your own boss. However, every business is part of a bigger picture. That’s something that a smart business person is going to realize and work with.
Some of the ways that a single business is part of a bigger business include:
- There is a chain of events that occurs before a product reaches a customer. When you provide a product or service to a customer, you are not participating only in the simple transaction that you appear to be participating in. You are also participating in a small section of the chain of events involved in the bigger picture. This chain includes all of the businesses that came before you in the transaction and any that the customer will then continue on with. For example, Maverick Hammers sells hydraulic hammers to businesses that do mining. All of the people involved in the invention and construction of those hammers come before them in the chain. All of their customers (such as mines) and the customers’ customers (such as jewelry designers) follow them in the chain. If any of these people don’t do their jobs, the chain breaks.
- Every business contributes to competition within the industry. The chain of events requires that businesses work together. However the nature of business is competition between similar businesses. The amount and type of business that one company does directly affects the other companies with which it is competing.
- Each business is a part of a global industry. The choices that the business makes affect the rest of the Earth. For example, if the business decides to outsource its labor to a developing nation then it may improve job prospects in that nation but will contribute to unemployment problems at home. Likewise, a company that pollutes during manufacturing is contributing to global environmental problems. The company doesn’t exist alone but affects the entire world around it.
Even small businesses have to realize that they play a role in a bigger picture. The independent jewelry maker may not think about who manufactured the hydraulic hammers that allowed for the mining of the stones used in the jewelry but that doesn’t mean that the chain of events is irrelevant to the business. Recognizing this encourages every business owner to do their part as well as possible in order to maintain high standards across the industry.