Startup advice makes the assumption that every entrepreneur aims to grow their small business. This growth mantra scares away some entrepreneurs and blows up the rate of startup failure. If you don’t want in on a growth plan, it’s all cool.
Here are 6 reasons to keep you business small.
1. Lower costs
A big business makes lots of revenue but a lot of it is spread around to cover expenses. Business expense normally correlates with size. In your small business you will incur lesser expenses. The gain from this is that you will be able to reinvest more of your revenue into the business rather than meet overhead costs.
Perhaps I should have started with this. A small business is less tied down by bureaucracy. It’s much easier (and quicker) to make decisions and change as the market dictates. A big business will depend on its resources to adapt while your small business will require from you that entrepreneurial brilliance you already have.
3. Less Risk
Entrepreneurs love risk blah blah blah. Entrepreneurs also love peace of mind. A small business, simply, has more manageable risks. Your initial investments are lower. This gives you greater bounce rate (pun intended) every time you fail. It doesn’t mean you are a coward; it’s just the facts on the ground.
4. Personalized Service
The Supermarket cashier will never scratch that Bamba 50 for you. Small businesses have fewer clients thus they take greater interest in meeting their expectations. This leads to greater ties between customer and business.
5. Staying involved
When you run a business you ultimately develop a passion for it. You just love getting on with it. Watch out though; the bigger you become the more you have to detach. When you scale your business you find yourself having to let go to allow professionals handle stuff. Staying small allows you to keep doing what you love how you love.
6. Keep it all
The funny thing about growth is that your aim is to accumulate as much as possible but you lose out (a bit) in the end. All those investors who have propped up your business gradually eat away your share of ownership and control of your business can slip away. In a small business you actually get to be your own boss.
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