For most business owners, the dream of being the next billion-dollar company is real. There’s a lot to be said for business growth, that’s for sure. Unfortunately, with growth comes more responsibility and headaches.
With that said, there are some impressive benefits to keeping your business small. Read on to discover what they are.
- Lower Overheads
You can’t run a business without some overheads, but keeping these costs as low as possible will ensure bigger profits, regardless of your business size.
When you run a small business, you need less space, fewer employees, and fewer resources to keep going. It might even be possible to forgo a physical location altogether. Instead, you can get a virtual office address to present a professional front for your clients and employees. Much of the time, these virtual offices come with a host of amenities like secretarial support and mail forwarding to further lower your overhead costs.
- Fewer HR Issues
HR issues can be a nightmare. The more employees you have, the more concerned you must be with whether you’re following all the legal rules and regulations. Are you adhering to OSHA standards? Are you meeting your tax obligations? It’s much easier to manage the HR side of your business when you have a lean staff, which means keeping your business size nice and cozy. This will also reduce or eliminate the need to hire business lawyers who, though valuable, can be expensive.
- More Flexibility
Today’s business world is changing rapidly from day to day. Technology is always advancing, and what’s acceptable and what’s not is anyone’s guess. If you run a large company with numerous shareholders, it can be difficult getting everyone on the same page. With a smaller company, there are fewer people to answer to, and it’s much easier to adapt to changes quickly, keeping you viable and competitive.
- Better Quality Control
Quality control is a top priority in any business setting. If customers notice a dip in quality, you will lose their trust rapidly unless you find a way to bring your quality standards back up.
It’s tough maintaining standards when your focus is on growing. If you keep your business small, however, you can continue to focus on providing quality and meeting your customers’ expectations, thus remaining competitive and reducing stress. You can also invest extra profits into improving quality rather than expanding the business.
- Greater Profit Margins
As a small business owner, you may not make a billion dollars a year, but your profit margin could be greater than that of a large company because of our first point above – lower overheads. When you keep your business small, you are more likely to keep it sustainable and profitable.
- Less Risk
As a small business owner, you probably only have yourself to answer to. This makes it easier when it comes to investing in new ventures because you’ll need less time, energy, and money to do so. Should any of your new ventures not pan out, you’ll be able to regroup faster due to the smaller investment and modest risk profile.
- Better Customer Service
The smaller your business, the better able you are to cater to your customers’ needs and provide a more personal experience. This fact alone makes staying small a serious consideration as it ensures returning customers and positive word-of-mouth advertising.
While running a small business isn’t as glamorous as managing a Fortune 500 company with locations all over the world, keeping your business small comes with some pretty impressive advantages that are hard to ignore.