Stay Flexible to Grow Strong

Gold speaks from his experience with Gold Mobile: "We were growing the business when there was recognition that we needed a more senior executive to take over as a chief operating officer." He then brought in Jane Miller as COO to manage the internal aspect of the company, allowing Gold to spend more time meeting customers and other telecom industry players.

Gold recommends small-business owners hire people based on outcomes (their effectiveness) as opposed to function (their job title). Just because someone has been successful at their previous job in a large company does not mean it will translate well into the same position in your small company.

Careful hires are also crucial because your employees represent you. "You can't rely on the brand of the company as your personal brand [in a small company]. People are buying into the executive team in a smaller company, as opposed to buying a product from a larger established company like IBM (IBM Quote), where you are buying a product based on the brand," Gold points out.

Peter Clarkson, CEO of contact-lens provider ACLens.com, says, "The approach we have found works well is when we hire people who are smart, energetic, motivated and we think are capable of learning the skills and Internet marketing."

Working in a small business is all about being adaptable, especially as the company evolves. Clarkson says he considers applicants from larger companies to be at a disadvantage because they don't always have the flexibility and cross-disciplinary approach necessary for a successful small business.