It seems that terms like ‘growth’ and ‘expansion’ are almost synonymous with business. While the idea of transforming your small business into the next Unicorn might seem attractive, bigger is not always better.
In fact, growing your business too quickly can lead to a lot of unanticipated obstacles and challenges. And, although ‘move fast and break things’ is a common Silicon Valley mantra, it certainly is not a one-size-fits-all advice.
In this blog, Tommy Shek discusses the key benefits of keeping your business small.
The Benefits of Staying Small in Business:
Benefit 1 – Lower Overhead Costs:
Small businesses generally require lesser equipment, lower utilities, smaller facilities, and less maintenance than their larger counterparts.
According to Tommy Shek, this means that you can keep the large majority of the profits for yourself, or reinvest them into the business (instead of paying a huge monthly rent or purchasing the most sophisticated machinery).
Benefit 2 – Greater Flexibility:
Adaptability and agility are the names of the games for any 21st century business. With things changing in the blink of an eye, Tommy Shek says that it is more important than ever before for entrepreneurs to be able to adapt to changing market and economic conditions.
In a large corporation comprising numerous stakeholders, it can be painstakingly hard and time-consuming to bring everyone on the same page and get the ball rolling. This severely limits the business’ ability to react in a swift and timely manner.
By keeping your business small, you make it easy for yourself to switch gears or press on the pedal as and when needed.
Benefit 3 – Lower Risk:
Of course, there is no business without risk, but a small business makes it easier for you to take controlled, manageable risks. Not only are you only accountable to yourself, but you also require less money, time, effort, and energy to try out something new. If a new venture does not work out the way they wanted, the lower initial investment (and risk) makes it comparatively easier for small business owners to land on their feet.
Benefit 4 – Personal Customer Service:
Smaller businesses are better able to tailor their offerings as per the requirements of each individual client, leading to more trust, loyalty, and repeat purchases.
Every customer wants to feel special, and, by keeping your business small, you can entertain your clients’ requests and recommendations and make changes accordingly.
Besides, working in a tight-knit group, your employees are likely to feel more connected and engaged to the people that they work with, as well as to the business as a whole. Smaller teams mean greater responsibilities, which also makes employees feel recognized and significant.
While growth is a primary business objective, not every business needs to become a billion-dollar affair. Certainly, keeping your business small has its own set of benefits, some of which were outlined by Tommy Shek in this blog.