Laura

livelihoods of thousands


Small businesses have six ways to compete with large corporations


Because of the dominance of large companies in the marketplace, many people fear starting their own company. They believe that the only way for a newbie to be successful is through big companies. The truth is that it's not quite true. There are plenty of chances for the small-scale business owner to succeed.
Here are six tips to get an edge over the big corporations when starting a small business.
Innovation can be achieved quicker if you are willing to implement changes.
 
Problems for big corporations There are so many layers involved in their decision-making processes that they aren't able to react fast enough to changes happening around them. The changes are constantly occurring. Before they get the required approvals, they are often too late to the party, and the benefits they reap from these innovations aren't quite as significant as they could be.
You can respond to market changes as they happen because you are a small company. Often, you might even be the sole person in charge, meaning that you could make any modifications you wish to make to your strategy the moment you conceive them. You don't have to take quick decisions. But, agility could help you when speed is important.
Your customers will feel more at ease with you when you establish deeper connections.
 
Some humans prefer to interact with others, not companies that are not human. However, this won't be possible with big businesses that have thousands of people who work for them. They wouldn't be able to dedicate the time and resources to develop a relationship with each customer.
You can actually meet each clients more intimately when you're a small business. You might find that your clients are not as many as you would like. They will likely prefer to communicate with you through the team members they work with or directly.
Teams are able to work closely
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Similar to the previous example however, this time, I'm talking about communication within the organization. With smaller teams and less departments, your employees will be able to develop better relationships as they collaborate closely, knowing each other on a more personal level.
Instead of sending lengthy emails to coworkers regarding the project you are working on, and waiting for them to respond instead, go back and ask them directly. The flow of information will be significantly improved.


You're strapped for cash
 
You might be thinking about what makes having less money so good. It is easy to answer. You can get creative, and you have to be more creative than those who have more money. However, you have to ensure that every dollar you spend will benefit your company. It's impossible to think of 10 possible solutions to an issue. You can only have one chance.
It doesn't mean big corporations don't have the ability to come up with innovative solutions when they are able to spend a lot of cash. However, this does make them more likely to accept a solution that is acceptable as they can easily fix it anytime they want. However, you must get it done quickly. There won't be second chances. The most effective solutions usually originate from those who are limited.
You can accept greater risk
 
This is a difficult one, because, as I stated in my previous post larger companies have more money and must be more inclined to be willing to take risks. The losses they incur will not be as large, right? Well, not quite. They might not be able make risky business decisions that could harm shareholders, even if they have more cash.
But, since you are the owner of the company, you're often the one who is directly impacted by every decision, including the most important. It may sound grim however it's more secure to be the sole person accountable for your own destiny than to know that your actions can impact the lives and livelihoods of thousands.
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It is more beneficial to concentrate on your mission instead of making money at every expense.
 
A lot of large corporations aren't focusing as much on their target audience now than they did in the beginning. Instead, they're focused on making money for shareholders. Although this is not a bad thing, it is how large companies work (especially those that are publicly traded). This is a benefit for small-scale business owners who have a an agenda.
Now you can concentrate on making your customers satisfied, even if that results in less revenue in the short term. This approach won't pay off long-term, and big companies don't want to endorse this approach. They need to continue bringing profits, while you consider the long term. However, it is not possible to risk putting your current success at risk to reap the benefits in the future.