Laura

publicly traded, operate


Small Businesses can Win with Big Corporations


A lot of people are scared to start their own businesses due to the large companies that control the market. These people think that a newbie can't possibly compete with the big corporations and win. But that isn't quite the truth and there are plenty of areas where it pays off to be the small guy.
Here are six advantages you have as a small-business owner over big corporations.
Changes can be made and be more innovative
 
Problems for large corporations Their decision-making process is so complex that they are unable to react quickly enough for the changes around. These changes happen constantly. They don't always get the approvals needed and the benefits they get from these innovations aren’t as important as they could have been.
Smaller businesses are able to be responsive to market changes as they occur. You may be the sole decision-maker in a small business. This means you can make any changes to your strategy as soon as they happen. It doesn't mean you shouldn't make decisions quickly. But, you will be better off in situations where you need to make changes swiftly.
Your clients will be more at ease with you when you establish deeper connections.
 
Humans prefer to interact with others instead of faceless corporations. It will not be feasible for large companies with thousands of employees. It is impossible for them to have a close relationship with every customer. Even if they could, it would not be prudent financially.
Small businesses can get to know each client better, by their employees and directly as owners. Some clients may not interact with you as frequently as they should. In these instances, it might prove costly to not meet them in person. Certain clients prefer dealing with a person who is pleasant and not a competitor.
You can collaborate with your teams
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Similar to the previous example, except that I am talking about company communication. Since employees are in close proximity and interact with each other, they are able to build stronger relationships and get to know one another better.
Instead of writing long emails to notify your colleagues about a new project and then waiting for a long time, turn around, and directly ask them. This will significantly improve the flow of information.


You're on a tight budget
 
It may seem odd that having very little money is a good thing. The simple answer is that you are able to be more inventive than your rivals who have the funds. However, you need to make sure that each dollar you invest in your business will be beneficial to you. It means that you can't try 10 different approaches to solve a given problem, but rather work harder on the one you choose and ensure that it's effective since you only have one shot at this.
Although that doesn't mean big corporations aren't creative when they have tons of money to burn through, it is a sign that they are more likely to settle on an option that's acceptable because they can change it at any time they wish. But, you have to get it done quickly. There won't be second chances. Sometimes it is the limitations that provide the most effective solutions.
You are able to accept more risk
 
This one is tricky, because large corporations, as I already mentioned are financially more safe and less inclined to gamble. After all, their losses won't be as large, aren't they? Well, not quite. They may have more cash, but they also have more people to please so they don't have to make risky decisions that could hurt shareholders.
But because you own the company and are the only person directly influenced by any decisions taken or even the most important ones. While it might seem like a harsh reality, the truth is that you are more responsible for your own destiny than if you have to influence the fate of thousands.
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You can focus on your mission more than making a profit regardless of the price
 
Most big corporations aren't focused on satisfying their customers like they did at first, instead, they are focused on making money for their shareholders. This is how big companies, particularly those that are publicly traded, operate. There's nothing wrong with this. You, as a small-business owner with a mission, have a tremendous advantage.
You can now concentrate on your customers, even if this means less revenue for the short-term. Large corporations can't adopt this strategy, even though it may be beneficial in the long run. They have to continue to earn profits in a continuous manner, while you look at the long-term perspective and put your present success in the background so that you can increase it later on.