We have all heard it said that small business is the backbone of the economy, and we all seem to know that is true. The exact definition for small business is not so clear, but what is clear is that most businesses are small by that allusive definition.

It is a bit of an irony that some business owners try to project the idea that they are bigger than they really are. As much as we might say bigger is not better, our attitudes and actions will determine whether we really believe that or not.

There is strength in being small once you discover how to harness your energy.

The idea of comparing the size of a business, to the size and power of a boat, provides an excellent analogy. A cruise ship may withstand storms and high waves much better than a small yacht, but it is not very maneuverable. A speedboat can go places a ship could never attempt. It is faster, agile, and can turn quickly to avoid danger.

These comparisons are no surprise. Most people seem to realize these differences, but contemplating them well enough to seize their potential is what separates the weak from the strong. The small athlete, who could easily be crushed by bigger competitors, can still win by dodging them and outrunning them.

For small business owners to adapt the same thinking as big business can easily bring disaster. You have the advantage if you think differently. Business models are changing fast, and a small agile company can adapt more quickly. There are big companies teetering on the edge of bankruptcy. Some of them are so steeped in outdated business practices, that they cannot adapt quickly enough to avoid hitting the iceberg.

While big corporations may have an advantage in marketing budget and buying power, small businesses are usually better at having substance. They can respond to their customers and provide more personalized service. They can specialize and prosper in a smaller niche market that would be impractical for a bigger company.

It is difficult, perhaps even impossible, for a big company to operate as efficiently as a small business. With small business, efficiency is not optional. Wasted resources can easily ruin a small business. Because efficiency is so necessary, small businesses tend to be much more productive.

Small businesses can also easily implement methods to increase their efficiency. Advances in areas such as lean manufacturing, modular tooling and work cells, automation, communication, and information technology help level the playing field for small business. With video conferencing and the Internet, collaboration can be accomplished without expensive travel.

In spite of the challenges, the opportunities for small business have never been better.

If you find yourself wishing your business was bigger, that’s great, keep reaching higher. Keep growing and improving. Reach for your fullest potential. Make sure to enjoy the journey though. Your business might always be small according to the unclear definition of whatever small is, but being small can also be your greatest strength.

Here are some reasons you should consider why you should consider outsourcing your payroll service

Using a small business payroll service can minimize the amount of work you have to do as a small business owner. Your time is very valuable and limited. Focus your energy on activities which provide direct value to your organization. Processes such as payroll are extremely time-consuming however they do not add a direct benefit your company when performed as an in-house function. Consider outsourcing the services to a third-party or integrate your payroll through software such as QuickBooks.

Payroll companies can handle employee related issues along with federal and state regulatory issues as well. It is important to make sure you’re filings are done correctly to minimize penalties and amendments to previous tax forms.

Outsourcing your payroll will also eliminate the necessity for you to become an expert on topics such as withholding amounts, FICA, unemployment insurance and other labor laws. Rules are constantly changing, and it can be challenging to stay on top of all these new regulations while running your core business as well. If you have employees in multiple states, you should consider outsourcing payroll. In addition to federal regulations, each state has their own peculiarities when it comes to filing requirements.

Outsourcing your payroll can also help prevent financial penalties from late filings, underpayments, and incorrect paperwork submissions. Small business payroll services will usually guarantee their services, and pay for any errors which result from their mistakes. Payroll companies work by employing economies of scale. A third-party can do this much more efficiently and at a lower cost. One of the things you should do, is add up your time spent on routine administrative tasks. If you are spending more than 20% of your time doing routine tasks you should deftly consider outsourcing. Time spent on non-value added processes can usually be better off spending on projects which will provide direct value to your company.

When you’re choosing a payroll service you can search online or ask your accountant or banker. Some of the companies which provide online payroll include Intuit, ADP and others. Be sure to choose a service which allows online payroll management. This can save you time by allowing your employees to directly download their pay stubs and statements such as W-2′s at the end of the year. You can also tie this valuable information to an online portal for your employees.