Growing Gains: Departments That SMBs Need as it Grows

Small and medium businesses by their nature have low employee counts. An owner usually wears a few hats, if not all of them, and hire out to fulfill commitments. A few SMBs stick to this format even when they reach a point where they can afford to hire more people, to their detriment.

Growing a business means taking hits that can be recuperated at a later time. SMB owners who remember this know to invest in key departments that will help them run their business as they expand it. Some of these departments include:

Human Resources

When a company has 20 employees or less, it seems unnecessary to hire people or purchase software to carry out HR functions. However, growing businesses need people dedicated to human resource-related tasks. Having a dedicated HR department means freeing up your employees from tasks that they have no training in. HR departments can also improve the morale of employees. Business owners who handle HR become free to focus on expanding the business.

Savvy business owners end up using a mix of competent employees and HR case management software. Case management is critical for a modern workspace as it can cut down on the time needed to browse through a company’s files for various needs. Companies such as ServiceNow, for instance, provide software that can help your HR personnel manage your employees’ needs.

Accounting and Finance

A small business owner may keep track of all their company’s financial transactions at first. They may not need outside help at all if their business is just a hobby, based solely on their income as a freelancer, and if their tax situation is straightforward.

If their business employs multiple people and grows beyond a side gig, however, bookkeeping and tax payment will become an issue. Hiring an accountant helps SMBs avoid tax problems, payroll troubles, licensing woes, and shady bookkeeping. Accountability and safety are two things an accounting and finance department can bring to an evolving business.

Production and Inventory

Small business owner managing her inventory

Businesses cannot function without a production arm, nor a department that manages its inventory. Growing businesses will need people dedicated to either function — after all, it’s hard for a person hired to make a product to do what they do best when they’re also saddled with marketing duties.

Production is solely focused on ensuring that your business churns out what it makes its money on. Their counterpart in service-oriented businesses are the people who render or maintain the service.

Inventory not only keeps track of the production department, but it also provides data to administration and finance. Data from this department can be the deciding factor for business plans, in addition to records from finance and sales.

Marketing and Advertising

SMB owners need to advertise their great product in a way that makes it look desirable to consumers, even if they think it’s marketable enough on its own. A marketing and advertising department can help promote a product or service in addition to providing consumer-led data on how to improve said goods.


SMBs need to be cautious about their expansion. Hiring too much and for functions that a company does not need yet can put a business in the red instead of helping it gain profit. Business owners who keep a close eye on their company’s needs know when to grow their talent pool and how to go about it.

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