At one point, all business were small business. As time passed, the increasing complexity of the technology available, the greater sophistication of the markets to be served and the realization that larger enterprises are, in some cases, more efficient, led to the development of enterprises beyond what a single family was capable of managing, and eventually, they grew into the gigantic transnationals that dominate the news today.This does not mean, however, that small businesses are a dying breed, or that this sector of the economy is less relevant today than it was fifty years ago. Small businesses may not be able to manufacture passenger airliners or lay railroad tracks across continents, but those activities will also not be possible without many small and medium-sized enterprises that supply industrial giants with everything, from specialized software and consultancy services to the rivets and bolts that hold everything together. In daily life, many of the needs of ordinary people are served not by companies that employ hundreds of people in their headquarters alone, but by small businesses that may be run and managed by the person who owns them. In the past two decades or so, the explosion of e-commerce in its various guises has lowered the barriers to entry in numerous instances, meaning that small and medium-sized companies are now often able to compete with their larger counterparts, at the same level. While managing small to medium-sized businesses presents unique challenges, this aspect of management science has been extensively studied and formalized. Many of the techniques developed for use in the context of government and large corporations have been adapted to the needs of the typical SME. Steering a smaller enterprise generally involves a much greater degree of "seat of the pants" decision-making, but knowing something about the theoretical framework that has been painstakingly developed over the decades can allow a small business manager to be much more effective in his daily activities, introducing systems and procedures to deal with or prevent common problems, and - perhaps most importantly - learning how to plan strategically for the future.The theme of individualist ethos runs through in the world of small business. Numerous industry-changing companies have upset traditional markets with a person at the helm who functioned poorly in a more structured setting, such as academia or corporate life. Innovation and small business go hand in glove, whether this refers to technical inventions or simply finding ways to address customers' needs more effectively. While major industry players are more concerned with developing and promoting a single product that will be acceptable to the majority of consumers, small and medium-sized enterprises use their iconoclastic outlook and more direct connection to the market in which they sell to produce products tailored to what their buyers really desire, leading to both profitable companies and happy consumers.It is often thought that, since smaller sums and less complicated operations are involved in the company, managing a small business can be every man's game. In practice, though, small and medium enterprise management is far from easy. A manager in a larger company typically has a narrowly defined role and several people boasting different competencies to whom specific tasks can be delegated. If an unusual problem arises, he can escalate the issue to a higher level or ask for guidance from a different department.The situation in a small business is completely different. Instead of being presented with carefully circumscribed tasks, the small business manager has to take the total effect of every decision he makes into account, as it applies to the entire company and the environment within which it operates. Workloads and crises do not depend on any schedule, but have to be addressed as they arise. A corporate middle manager might spend his entire career in a field such as supply chain management, but anyone in a responsible position in a smaller business will likely have to know something not only about that, but also every other discipline that affects the company, and apply this knowledge on the fly. He may be expected to play the role of a marketer, a strategic analyst, an accountant, a human resources professional, a salesman and a credit controller, all before lunchtime on any given day.The demands of these varied roles, the direct responsibility and authority that rests on the shoulders of a manager in the SME context, and the joy of getting it right can hardly be overstated. Few managers in the corporate world have the opportunity to test both their operational and strategic skills in this way. A manager in a large firm who fails can expect a reprimand; one who does well might receive a bonus. In the case of a smaller enterprise, management failure can mean bankruptcy and unemployment for the entire workforce, while exceptional performance can mean financial independence or even personal wealth.A small business manager or owner does not need a Ph. D. in credit management, risk control or theoretical accounting. He does, however, need to understand enough about these issues in order to function effectively. The total quantity of knowledge and experience required, including any technical skills pertaining to the business's main cash-generating operations, is often equivalent to an advanced degree, yet all the necessary expertise is rarely combined into one academic course. This book aims to correct this state of affairs to some extent, being focused not on any particular aspect of what a manager in a small business will be expected to know, but giving a broad overview of all the facets that contribute to financial control, profitability and the many other things that go into making a business a success.