I have seen most small businesses manage themselves in a strange way. They think a business has to be managed with minimum cost. So that their profits are better. What does managing business with low cost mean?
It could mean employing staff who need less salary (less experienced or caliber), Spending less or nothing on training them, buying machinery that is cheap (may be even second hand), employing cheap freelancers to design your logo, ads , promotional materials.... The list goes on.
That is, they make their business in a disadvantage by not giving it what it deserves. This is not cost effective management, this is cheap management. Cheap management will have cheap employees, cheap products and cheap reputation.
Serious entrepreneurs should give the best to their business. Employ best staff at best salaries, use best equipment, best raw materials, best branding and marketing, best service providers. And in return get the best customers, and best profits.
One more thing, there is no thing as " Cheap & Best", it's just a myth.
This is applicable not only to business, but also to social organisations.
Is your business or organisation "Cheap"? Think about it and act, before your competition does.