In the world of business, speed is often the key to success. Be the first to spot a gap in the market and you stand a great chance of making some money. Be the first to launch a particular type of product and you’re likely to win a larger market share.
The challenge of adapting quickly is something that all businesses face, however it could be argued that it is much easier for smaller businesses than their larger competitors. Smaller businesses are able to move much quicker than larger companies, giving them a significant advantage.
Larger businesses usually have to consult board members and shareholders, making decision making a lengthy process.
Small businesses’ ability to manoeuvre quicker than their bigger competitors largely comes down to their sense of independence. Whereas large businesses are likely to have to consult board members and shareholders before a decision is made, entrepreneurs only really have to consult themselves, allowing them to implement change much more quickly.
Fewer people to manage
Another key advantage of small businesses is that there are fewer people to manage. Say you needed to make a last minute change before a product was launched to market – it would be much easier to inform and instruct a small team of staff, rather than multiple teams and departments, to implement the change. When there are only a few people involved in the creation of a product, it becomes much easier to manage.
Developing customer relationships
An important part of launching a product or in fact growing a business is developing strong customer relationships. And whilst larger companies may have their credentials and strong branding on their side, smaller businesses have personalisation.
It’s much easier for smaller businesses to develop strong customer relationships than it is for larger companies. The stronger the relationships are, the quicker you will be able to grow your business and achieve success.
Large companies often spend hundreds and thousands of pounds trying to replicate the personalised experience offered by smaller competitors, so use this to move your business forward quickly and achieve a competitive edge.
Smaller teams can work together to implement ideas quickly.
Quick implementation of ideas
If someone has an idea for a new product at a large business, it will usually have to go through multiple channels before any action is taken. The difference between this and a small business is that there are fewer people to consult, therefore allowing action to be taken much quicker.
Thanks to a lack of channels and departments, small businesses are able to implement ideas much more quickly, turning them into profit. They are often able to beat larger competitors when launching new products, as they have fewer hoops to jump through during the design and manufacturing process.
Capitalising on niche markets
Larger businesses tend to be focused on large volume products and services, leaving niche markets open for smaller businesses to capitalise on.
Whereas big businesses are usually slow in following trends, as they want to make sure something will sell first, smaller businesses have the opportunity to take greater risks and move quickly on new trends, giving them a significant advantage. By anticipating the needs of your target audience, you will be able to establish yourself as an industry leader.
We are constantly hearing about how difficult it is for small businesses to compete with larger businesses online but in actual fact, it pays to be a smaller company! With the opportunity to make decisions quickly, launch products to market faster and offer a more personalised experience to customers, small businesses boast a number of benefits that provide them with plenty of opportunities to give larger competitors a run for their money.