If you’re a small-scale company owner, it’s normal to think that the company you started will eventually grow into a world-renowned business. But, it’s crucial to understand that there are a variety of benefits small-sized businesses provide their employees and customers that larger corporations aren’t able to offer.
Culture
There’s something distinctive about a business that is owned by people who have been in the business from the beginning. They are bound by a shared tale of the company’s birth and most likely have a common attitude to work that creates a unique working environment. This culture is not just what sets the business apart as a place to work and a place to work, but it could likely be an element of the brand that customers are drawn to.
The larger a company gets, the more difficult it becomes to sustain the unique tradition that defines many small-scale firms. For example, roofing companies could start with a handful of experienced roofing contractors operating from an unleased space. As it expands, however, it will be moving to its own office space, adding white collar personnel (human resources, bookkeepers, etc.) and establishing specific rules and guidelines which weren’t needed when just a few people were working together.
Flexibility
As a company expands, it will become more complicated and complicated. Even the most efficient corporations have bureaucracies of immense size that are in charge of various aspects of business. This means that large enterprises aren’t nearly as agile as small enterprises or able to swiftly make changes. When you, as a business owner or founder, are looking to change the direction of your company, the decision must be scrutinized by multiple levels of management across various departments.
Smaller companies, on the other hand they can implement major adjustments much faster. If you’re only averaging the equivalent of 10 workers, it shouldn’t need much to arrange an all-staff meeting workforce, even if it’s mobile employees. Smaller companies can also be more swiftly able to identify and respond to issues. A lack of a complicated chain of command permits employees to be in direct contact with the company’s owner, who can swiftly address any issue an employee encounters, such as a product failure, a disgruntled workforce, or accounting mistakes.
Additionally, due to their flexibility, small companies are able to swiftly adapt to market trends or focus on certain kinds of clients. For instance, if you’re a general contractor and realize that you’d better focus on specific types of work, it could be a huge challenge to make the change because you may already have an abundance of workers and resources bound to other kinds of projects. These kinds of adjustments are easier for smaller companies to implement.
Specialization
The big companies are focusing on opportunities with high volume that bring in significant revenues. Therefore, a number of opportunities remain for specialization targeted at a particular market segment that isn’t covered by the biggest businesses. Small businesses have a lot to gain. It isn’t just that they can fill the gap and also build a reputation as experts who offer the best service than any other.
A specialist contractor that concentrates on residential luxury projects could provide a clearer marketing message to differentiate itself from the rest of the construction industry. Its reputable claim to the specific kind of service allows it to justify the higher price in order to allow to grow faster.
Communication
The familial nature of a small-scale business allows for greater communication between employees as well as the people who run the business. Workers can talk directly to their boss, with whom they probably have a relationship on a first-name basis. If there’s any issue with a particular project or customer, or construction worker, an electrician could give the leader of the business a phone call (or perhaps send them an email using an app for team communication) and ask them what they should do right away.
Communication can be a huge issue for large companies with a complicated hierarchy of commands. The highest-level executives do not have time to tackle the day-to-day issues. This means they must trust lower-level managers to reach out to employees in the field.
This means that problems that would otherwise be solved in a hurry may need to wait while the information travels from the work site to management and back down. There is also the possibility that certain information won’t be delivered to the boss, which leaves the manager in the dark regarding important issues.
Employee Development
A worker in a big company is not likely to gain exposure to all aspects of business. They are usually assigned a specific job or isolated within an area, and will only have a limited interaction with other departments of the company.
A small-sized company, however, allows employees to gain a better understanding of all the elements that go into managing an enterprise. A plumber who is part of a plumbing firm consisting of three men is likely to have tasks delegated to an employee of the larger business, like bookkeeping, marketing, accounts management, or scheduling employees, as well as the management of the workforce and project management.
Smaller businesses also give employees an opportunity to acquire strong business management abilities. Along with their solid experiences on the ground, these abilities help employees from small businesses develop into better-rounded and competent professionals since they are aware of all aspects of the business they’ve participated.
Customer Relationships
From the perspective of a consumer, the best part about purchasing from a small company is that you’re rarely dealing with someone who is just a salesperson or customer service representative based on an agenda. Instead, you’re purchasing directly from the owner of the business, who likely has in-depth knowledge and a passion for the product they’re selling to you. Since there is no one to answer to except the business owner, small-sized businesses are likely to be more flexible with the way they deal with you, such as offering special discounts or deals.
As businesses grow, eventually, there will be too many customers that the founders cannot handle alone. These tasks must be transferred to other employees who may not have experience and familiarity with the products or services and the requirements of their customers.
It is possible and recommended to teach your customer service philosophy to your employees, but there’s always an element of personalization that gets lost when the people who started the company aren’t communicating directly with their customers.
