In business, most times, the goal is to grow into a big multi-billion company which seems alluring and better. In most cases, small businesses desire to expand as fast as possible and become a big name in an industry.
Business owners don’t realize that running a large enterprise involves a lot of risks, and bigger problems are dealt with. Growing a business too quickly can often bring about unexpected obstacles you may not be well equipped to handle.
There’s absolutely nothing wrong in scaling but take your time and don’t force growth. Besides, keeping your business small comes with several advantages.
1. Less risk
Risks are inevitable in business, but staying small helps you mitigate or manage the risks in a more controlled manner. In smaller businesses you only have to answer to yourself and if your investments don’t yield the desired outcome, you can personally make decisions that will be of utmost benefit to you without hurting anybody else. You’re able to bounce back quicker as a result of lower initial investment and risk compared to a bigger business.
2. Quality Control
One of the major problems that larger businesses face is maintaining the high quality of output. The size of an entreprise could affect the standard of the goods produced. This is because these companies are mostly concerned about meeting demand. In trying to meet the number of orders, quality might suffer. This is not the same for small businesses as entrepreneurs can keep a closer eye on quality levels and ensure that they’re consistently meeting costomer expectations.
3. Faster profits
In small businesses, you can get away with less capital, low overhead, and fewer employees. This means you can turn a profit quicker than in a larger corporation.
Although you may not be making a lot of money, but the money you make is only divided among fewer expenses, meaning you get a greater portion of the cut.
4. Adaptability
In small businesses, flexibility, and not bureaucracy, is the primary principle. With change occurring at such a rapid rate, in terms of technology, consumer preferences, and marketing strategies, it’s arguably never been more important to tweak your business swiftly and accordingly.
If you’ve got a large company with numerous departments and stakeholders, it can be difficult to get everyone to react to shifting conditions in time. But by keeping your business small, it’s relatively easy to implement necessary changes.
5. No HR issues
The more employees you have, the more rules you have to contend with. Also you would not have to pay salaries and even if you must, isn’t it financially wiser to have at most five full-time employees than 10 or more? Small businesses should adopt the lean framework; invest in the things you need and that are pivotal in the running of your business at the moment. As your business grows, you can hire more employees and invest in other areas when that times. For now, try as much as you can to reduce unnecessary expenses. This is one benefit that small business owners can enjoy before their ventures grow bigger.
