extremely limited budget
Small businesses have six ways to be competitive with large corporations
Many people are scared to start their own business because of the large corporations already in charge. Many believe that it is impossible for an aspiring business owner to compete with these industry giants. The truth is that it's not quite true. There are many opportunities for the small guy to be successful.
There are six benefits you will enjoy over large corporations as a small business owner.
1. You can make changes and be more innovative
Big corporations face a problem. They're overwhelmed by the multiple layers of their decision-making process and aren't able to adapt swiftly enough to the changes happening surrounding them. The changes are constantly occurring. Before they get the required approvals, they're usually tardy to be in the game, and the benefits they end up getting from those innovations aren't as significant as they could have been.
You can respond to market changes in the moment they occur since you're an individual company. You may even be the sole person in control, which means you can make any changes you wish to your plan from the moment you start thinking about them. This doesn't mean that you shouldn't make decisions quickly. But, you will be better off when you have to implement swiftly.
2. It's possible to build closer relationships with clients
Humans are more comfortable interacting with other people rather than companies that are not human. This isn't possible for big businesses that employ thousands of people. They won't be able to dedicate the time and resources to develop a relationship with each client.
Smaller businesses can know each client better, by their employees, and directly as owners. In some instances the client base you have may be so small that you don't have time to get in touch with them. Others will choose your competitors and treat them as customers, not as friends.
3. Teams can work closely together
Similar to the example above however, this time I'm referring to communication within the company. Because employees are more closely connected and work closely, it's more easy to establish better relationships.
Instead of sending long emails to coworkers regarding the project you're working on and then waiting for them to respond instead, turn around and ask them directly. The flow of information will be greatly improved.
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4. You have an extremely limited budget
You might be wondering how is it possible to have little money? The answer is simple. You are able to be required to get more creative with your money than your competitors. Since you want to make sure each dollar is used in a manner that will benefit your company. It's not possible to think of 10 possible solutions to an issue. You can only have one chance.
Although that doesn't mean large corporations don't think of new ideas when they have tons of money to burn through, it does mean that they're more likely to settle on an option that's acceptable because they can change it at any time they wish. On the other hand you need to do it quickly. If you don't, there won't be any second chances. Often, it is those limitations that lead to the best solutions.
5. It is possible to take on higher risk
This is a tricky one, because large corporations, as I already mentioned, are more financially secure and more inclined to gamble. Their losses aren't as big do they think? Well, not quite. They have more money however, they also have many more customers to please. This means they won't have the ability to invest in risky ventures that might harm shareholders.
Since you are the owner of the business You are usually the only person directly affected by any decision taken. This may sound bleak, but it is far better to be solely responsible for your fate than to be aware that what you do could affect the livelihoods and lives of a lot of people.
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6. It is more beneficial to concentrate on your mission instead of making money at every cost.
Large corporations are no longer focused on serving their market as they did at the beginning. Instead, they focus on making a profit for shareholders. While this isn't an issue, it is how large corporations operate (especially those which are publically traded). This is a huge advantage for you as a small business owner with a mission.
It is now possible to focus on making your customers happy even if you generate lower revenue in the long run. Even though it will be beneficial in the long run however, large corporations cannot take this approach. They need to keep bringing profits continuously, while you consider the long term and put your present success on hold to make it more profitable in the future.