Published in  
July 20, 2021

6 Advantages Of Keeping Your Business Small

Is it true that the bigger your business, the better in every aspect? Having worked for companies in different sizes for 16 years, I can tell you that smaller companies have their advantages. These advantages not only make businesses more profitable, they also help them weather the storm.

Changes can be made quickly

Is steering a big truck easier or a bicycle? I am sure you would say the latter. This is the same for a business. If you want to change the direction of your business, it is easier for a small team than a team of 1,000 people. All you will need is just a team meeting instead of a series of meetings, memos, emails to ensure everyone is on the same page. Being able to change quickly is a big advantage, especially during a crisis.

A close-knit team is good for growth

When a company has only 10 people, it’s so easy to gather around and brainstorm ideas. Since the team is small, everyone has the chance to share their thoughts. However, it is not so easy to have a meeting like this in a big company. Think about having over 500 people in the same room for a brainstorming session, most people would just keep silent – either they don’t have the chance to talk or are too shy to share their ideas in front of a large audience. If more employees actively participates in the meeting such as brainstorming session, it drives employee engagement and innovation.

Your customers will receive better service

Big companies usually have lots of procedures and policies, if you want to waive a fee for a loyal client, you might need to go through hoops to get the approval. On the contrary, this would be easier in a small company as the policies are more flexible and the management structure is less complex. Frontline staff in a small company usually has the authority to go the extra mile for the customers. As a result, customers are more satisfied and loyal.

You will have a more motivated team

One of the good things about working for a small company is that you have a better chance to get your feedback heard. Even the most junior employees can have an impact on the company’s direction. That is something that rarely happens in a huge organisation. When your employees feel valued and heard, they will be more motivated and work harder for the company.

A small team will provide better flexibility

As the business expands, you might want to hire more people. However, more employees means more expenses: office space, insurances, benefits, equipment, safety compliance and the list goes on. If one day you need to downsize the operation, you cannot cut these expenses just like cancelling a mobile phone contract. You might need to pay penalties and in addition to that, it is never a nice thing to do to let go of lots of people, especially those who helped make your dream a reality.

You will have a better chance to succeed

When your business becomes too big, it is hard to be the best in all areas. Instead of being average in all lines of your business, why not pick one and dominate that market? Focusing all your resources in one area gives you a better chance to succeed. Spread yourself too thin will lead to brand dilution and drag the whole business down as a result.

To expand or not to expand, that’s the question

When starting a business, everyone wants to turn it from enough for covering the necessary expenses to making it a full-time job. If you are very ambitious, your ultimate goal could be turning your small business to a multi-billion dollars corporation with offices globally. However, some businesses are better to stay small, the bigger a business gets, the riskier it becomes. Different businesses have their unique situation, as a business owner, you need to do your analysis and decide how your company should pivot. Remember, company growth doesn’t necessarily mean growing the headcount.

Image by Ella Jardim