Last December, $30,000 in bonuses were distributed to the employees of Electronic Source Co., a printed circuit board manufacturer in Van Nuys. The payout was how company owner Scott Alyn handles workplace motivation, just one of the many challenges in managing smaller firms these days. At the Van Nuys company, all employees are rewarded for hitting goals in customer satisfaction, delivery responsiveness and communication. Monthly customer surveys determine the amount of the bonus. The result is an enlivened workforce that sees a tie between their work and the satisfaction of those receiving their products. “They are aware of certain customers and whether they are happy,” Alyn said Launching and operating a small business is not easy. The competition is tough; the failure rate high. Added in are the myriad of issues of management of that business the best way to finance, the best way to market, how new technology fits in the picture, etc. Some challenges are more on the minds of small business owners and advocates than others. Take for instance the workplace motivation. Or as Al Portnoy calls it, having the workforce buy into the company vision. “They want to be a part of something, and why they do it is more important than ever,” said Portnoy, co-chair of the Los Angeles chapter of the U.S. Small Business Administration’s SCORE program that gives assistance and counseling to those helming their own companies. At SADA Systems, an information technology company in North Hollywood, owner Tony Safoian said that an entrepreneurial environment helps with motivation. Like Alyn at Electronic Source, Safoian measures customer satisfaction and builds bonuses and profit sharing for his employees around achieving certain performance goals. “Whatever you want people to do, you have to motivate that behavior,” Safoian said. Having owners understand their international competition as well as local competition and how to measure return on investment are other challenges that Portnoy and other SCORE counselors work on. But the one thing Portnoy did not list as a small business management challenge was that of money, as banks are more willing to make loans. “I don’t see that as hurdle for a decently run business,” Portnoy said. How can a business owner meet these challenges head on? By taking their time, assessing their skills and changing their attitudes if need be. “It is not a quick fix,” said Jonathan Goldhill, a management consultant specializing in small business. “It is something that takes time to master.” Not having a plan or strategy in place, confusing activity with accomplishment and not seeing themselves as entrepreneurs and managers are among the challenges he sees small business owners facing, Goldhill said. Ineffective leadership and failure to delegate authority can also cause problems. A big reason why small businesses stay that way is because the owners think small and limit growth by having all management decisions go through a single person, Goldhill said. This happens primarily out of fear fear of losing control over the business, fear of losing accounts because other people will be managing them. “They don’t believe anyone can do as well as they can,” Goldhill said. Delegating responsibilities is a big leap for any business owner, said Safoian. If a business owner is a control freak there is nothing worse but in his case he finds it exciting to see an employee succeed in taking on added responsibilities. “The real power is getting someone to do something better than you can,” Safoian said. “That is what motivates me to delegate.”