Most entrepreneurs dream of owning a large business and making billions. They think that if their business isn’t growing then it is failing, but this concept isn’t always true. While it would be nice to be the owner of a large company like Google, it isn’t realistic. Forbes says that, 80% of entrepreneurs who start any sort of business will fail during their first year. So as a small business owner, see why being small can be a good thing.
Big Can Be Bad
Growing a business involves taking the right steps in the right direction. Ideally, you want your business to become something everyone knows and enjoys, but there are pitfalls in being a “big boxed company” such as being:
- Less flexible.
- Less customer centric.
- Less responsive.
- Less frugal.
Now, the desire to be bigger is a great motivator for any entrepreneur but the problems that arise can hurt your business more than staying small. So consider the qualities above as what makes your small business ‘work’ and keeps you different from the larger companies. Remember that being small is your differentiator and your strength, not your weakness.
According to a Washington Post survey, more than 90% of Americans prefer small businesses to large companies. This shows that while you can always grow your business down the road, think about why you would want to lose the “family” feel when so many Americans support entrepreneurship.
Keep It Flat and Smart
Being a small business owner means you have fewer employees to manage and fewer employees create less mistakes and get more work done. In fact, 42% of employees say they are more engaged at work with companies that have less than 10 people. And individuals do not try as hard in a group compared to working alone, otherwise known as social loafing. This statistic shows that being a small business proves to have benefits of a higher performance level by workers. This goes without saying, but you must hire smart people to work for your small business or work performance levels won’t matter as much. By giving smart people simple guidelines to follow, you are allowing them to excel. Needless to say, a flattened organization is easier and necessary for small business success.
Smaller Not Poorer
Many individuals think that small “mom and pop” shops or “brick and mortar” stores aren’t in the business to make money and are outdated but that’s not entirely true. Small businesses do earn less on the pay scale compared to large companies but the qualities they bring are valued much higher. For example, small businesses can react quicker to problems, resulting in a more satisfied customer. They have more time for planning and meetings which benefit the overall businesses strategy. Lastly, small business owners have the ability to work on a variety of projects that interest them without having to report to a supervisor.
This all equates to the worth of a business being measured more on the aspects it brings to customers and the community, rather than the dollar sign each pay week. As a matter of fact, the last 2 years have started to show a meaningful growth rate for small businesses, the first time in 25 years. This proves just how big your small business is. So be proud of your small but mighty business!