Small businesses have always been crucial to the Irish economy. A lot of the focus in the media and in some sectors of Government, however, is on big business, including attracting major multinational corporations to these shores. However, smaller businesses have several distinct and important advantages over larger corporations. These small business advantages include flexibility, better connections with customers, and greater operational efficiency.
Here are three ways your small business has the upper hand over larger ones.
1. Flexible and Open to Change
Smaller businesses have more control over their interaction with clients and general output than larger corporations. Overall, clients of smaller businesses who regularly have one-on-one time with its owner/operator are more satisfied than comparable clients working with larger businesses. This is because clients working with larger businesses rarely or never get such a level of interaction with those calling the shots.
Smaller businesses are also very flexible and open to change because the decision-making process rests on fewer shoulders. It is also much easier to make major changes to a smaller company’s operations. This is a clear bonus when it comes to time-sensitive decisions, the need to react quickly to opportunities or risks, or to respond to regulatory or industry changes.
2. Better Connections with the Consumer
Clients and business partners don’t just resonate better with smaller businesses, consumers do too. In fact, many consumers go out of their way to support small businesses, even if it means spending a little more on a product or service.
Consumers like to feel valued, understood, and special. This is something which is a lot easier to achieve when you are a small business as you can handle customer complaints quicker and on a more personal level. You can also deliver a more customised experience and are better placed to respond to demands from small groups of customers.
Large businesses tend to spend lots of money trying to replicate how you, as a small business, connects and establishes relationships with your customers. Their simulated approach will never be as good as the real thing, however.
3. Operational Efficiency
Smaller businesses tend to have fewer employees and a more streamlined management structure. This can be a considerable small business advantage.
By having fewer people and layers of management within a business, you can better respond to challenges in your industry. Large corporations have fewer options in such situations, often having to lay off whole departments in order to remain competitive.
Smaller businesses operate more efficiently than larger ones, too. Fewer managerial layers enable faster and more effective decision-making. This allows smaller businesses to react and adapt quicker than large corporations. In addition, individual workers tend to operate more efficiently too as they are much closer to the business and have a better understanding of what does and does not work.
Although many people dream of running a huge company, there are plenty of benefits to be had by operating a smaller business. Not only that, in many areas, small business advantages give you a competitive edge.
For more help and advice with your business, please contact a member of the Gilroy Gannon team today.