Small companies can have the advantage
November 06, 2012
Most individuals think that between corporations and startups, the more well-established business tends to have the competitive advantage. There are definite benefits that the larger companies have - a long history of providing their services or merchandise, more revenue and a bigger payroll. However, there are certain elements of the business process that are available at startups that corporations cannot claim.
Small firm owners often struggle during the first few years of operation. These companies tend not to make a profit after spending so much money on one-time expenses, like equipment or advertising for hiring, which compounds with other charges, like manufacturing and packaging. Leaders also have to make many decisions, like what accounting software to use, which individuals they want to take on, where to rent the storefront and other issues. However, if they persevere, they can definitely experience advantages managers at bigger businesses aren't privy to.
A clean slate
While some may view starting from scratch as a disadvantage, it can be positive that a small company has no history in their industry. Rather than looking at it like something that means that consumers may not buy their products because they don't have a reputation, leaders can take it as starting off with a clean slate.
They have the freedom to make whatever business decisions they want - they don't have to stick with a tone that's already been established at the company, something business blog FlyWheel cited as a major advantage for running a startup.
Offer more extensive services
At enterprises, workers are usually able to take liberties when offering goods or services. Where larger entities are often driven by the overall bottom line, smaller ones can focus more on customer satisfaction. For example, they might be able to help offer updates, replace or install some merchandise, or any other process that would make it easier on patrons. Not only do employees at corporations usually not have the time to put a personal touch on the experience of individuals, but they are often not allocated the resources to do so.
Inc. explained that if small businesses are able to offer additional benefits, whether that means actual goods and services or just a more personal experience within their stores, especially when at a lower price, they're often able to take the market share of customers.