Small is beautiful they say but is it right for your business ?
The media like to sell us an image of businesses that grow,join the global business community, expand into new export markets.We all know the local hero who employs hundreds of people ,has a finger in every pie and cannot miss an opportunity.
When you run your own business there is no shortage of advise available about how to build a small empire but is it really worth it financially and are the lifestyle sacrifices worth the rewards ?
Whilst growing a business can give us motivation and larger potential earnings keeping a business small can also have its advantages,
Lower overheads , less running costs ,and maintaining equipment are obviously advantages.The bigger the business the more work space needed or IT equipment to keep your network running.
The more staff you have the more time you spend on HR issues, hiring and firing all takes you away from your core focus.Training,Pensions,Health and Safety the list is never ending.Also when you start to delegate keeping the same levels of service or products is a major issue, how can you be sure that all parts of the job are completed correctly and to the expected standard.Are interactions with clients monitored? Have you built the business on “brand you” and will that alienate some customers if you lose that personal touch ?
A small business can plan and change strategy more easily, be quicker and more flexible when responding to market trends.Department stores on the High street are a fair example.
The bottom line for many large organisations is not always one of huge profits, they have often had to borrow to fund expansion and sometimes it is the case that smaller businesses have higher profit margins.You are able to keep in touch with all areas of the business.
Staying small can suit your lifestyle better, work and meetings can be arranged to suit your diary and decisions can be made without consulting numerous managers or shareholders.You can also take pride and celebrate your own triumphs.
Keeping a business small but profitable might not make you a famous entrepreneur or local hero but it may just be the best option.