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  • Writer's pictureTony Richards

Small Can Be A Big Advantage

Owners of small businesses often face a variety of problems and challenges related to their size. These can range from being undercapitalized to tremendous economic currents to navigate.

Many times, leaders and owners of smaller companies feel that the business environment controls them rather than having control over their own destiny. That being a smaller company of less than fifty employees makes them inferior. On the other hand it is worth pointing out a few strategic advantages a smaller company might have in the ever-changing competitive landscape.

1. They should communicate better-Companies that are smaller should have fewer layers and less red tape, in addition to having fewer people to complicate the process. They should be able to function in a communicative fashion much like a department or a task force at a much larger company with everyone having a clear understanding of the mission, values and priorities.

2. They should move faster- Smaller companies should have the agility to change directions quickly. This can be both a positive and a negative. It can be a positive from the standpoint of making strategic adjustments when necessary, but a negative, when a leader or owner wants to change things quickly when it’s not warranted or valid. The organization can be put into chaos much easier than larger companies can or can make adjustments if needed based on competition or marketplace events.

3. Leaders are easily identifiable- Unlike in a larger company, there is less hiding. Everyone’s performance and impact is clearly seen. This should require more attention to the process of identifying and developing the leadership, since the results are so obvious. You can change the trajectory of a non-performing company in many cases by hiring one person everyone knows is needed and letting go one person everyone knows needs to be let go. In a company which has between eight and twenty-five people, every person must be a contributor to the organization’s success and at times, its survival.

4. They should waste less- In smaller companies, the communication is clearer and the leadership is more cognizant of how every decision has immediate & strong impact, people notice more. The organization seemingly has fewer resources, so leaders are more cognizant to conserve and spent time on the truly important.

These and many others can be large strategic advantages to the smaller business owner or leader. Being small allows you to be creative in your brand, your presentation along with these other factors which culminate in a strong competitive advantage for your enterprise venture.

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