![]() Lower start-up and overhead costs combined with quick turnaround times could enable you to generate a profit faster than a larger corporation. The result: faster decision-making, streamlined processes, and quick results. Eliminating the levels of bureaucracy found in large corporations allows owners of smaller businesses and their leadership teams to stay close to the action. Quick Resultsįewer chefs in the kitchen can get a meal on the table faster. If things don’t pan out, you can course correct quickly and bounce back faster than a large company that has made a more substantial investment. In smaller businesses, it often takes less time, energy, and money to invest in a new product, service, or initiative. Risk is inherent in running a business of any size, but staying small may make it easier for you to manage the risk. Staying small affords you opportunities for flexibility with everything from your hours and marketing approach to keeping up with changes in your industry. Without the layers of management often found at a larger company, small business owners can shift gears, change direction, fix problems and, if necessary, eliminate processes or programs altogether without engaging in a long, drawn out process. More FlexibilityĪgility is one of the biggest advantages small businesses have over larger competitors. Your business may generate higher profits more rapidly thanks to lower overhead and expenses. ![]() Staying small in terms of both size and scope of work keeps the cost of doing business low, allowing you to spend less on inventory, staff, rent for a large workspace, and/or expensive equipment or software. The smaller you are, the less infrastructure and resources you will need. If your business plan is centered on staying small, the benefits may outweigh being the biggest business on the block. If turning your small business into a billion-dollar enterprise is alluring, keep in mind that setting up your company for success will require more staff, resources, and systems, as well as a solid plan for managing your growth strategically. One of the reasons these satisfied entrepreneurs site most often is quality over quantity, or specifically choosing quality of life over “quantity” of profit. ![]() According to a study by University of Chicago professors Erik Hurst and Benjamin Pugsley, many business owners start out small, stay small, and are very happy that way. There is evidence to support the fact that staying small is a legitimate business trend. Becoming too large or expanding too fast can create unexpected challenges, while keeping your business small often has unexpected advantages. While it’s true that most people start businesses with the intent of growing them, the size or speed of this growth may not be the ultimate measure of success. There are many areas of life where the mantra “bigger is better” rings true, but this is not always the case when it comes to your small business.
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