You can be successful when you’re a small company. You don’t have to be a huge corporation. In some ways being small gives you advantages. Here are five.
1 – Small companies tend to have better internal communications
A small company with few employees has fewer layers of bureaucracy. Employees in a small company tend to be more aligned along goals and work efforts as a result. Communication is more direct. There is less internal politics. Better communications can lead to more rapid deployments of products and services.
2 – Small companies tend to be more agile
Large corporations have a lot of inertia. They are driven by long-term marketing efforts, deadlines, and their own history and legacy. Upsetting any of these is painful and costly. Additionally, the corporate policies and workflows are in place to protect the company from legal and stockholder issues. A small company can ofter pivot within a week and can offer solutions that a large corporation in the same industry will not or can not. Fewer people and less red tape can allow a smaller company to outmaneuver a large corporation.
3 -Small companies tend to be less costly to deal with
Small companies have fewer costly investments. Small companies may have no quarterly numbers their workers or stockholders need to meet. Small companies can focus on delivering services and products with less overhead. This allows them to set prices more aggressively.
4 – Small companies can provide more customized options
Large corporations tend to sell pre-packaged products, and allow for little or no ability to customize what you can buy from them. If customized solutions are offered they are priced higher. Being more agile, small companies may not charge for customization, as it may already be part of their core work-flow. Small companies can provide better tailored solutions at lower cost.
5 – Small companies have better focus.
Large corporations tend to have highly diversified product sets, with thousands of employees all working in distinct groups. Resources and funding for any given group is diluted and dependent on whether the group makes its quarterly numbers, not necessarily how good the product or service is inherently. A small company has few products or one or two services. This allows them to focus all of their efforts into their core business. A small company doesn’t have to compete with itself. This can lead to faster improvement and better overall quality.
So, if you’re a small business and you’re successful, be careful, as you try to grow.