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With Business, is Bigger really Better?

By Alan Gillies

Republish: EasyPublish™ Published: 12Mar2009 Word count: 400 Viewed: 308 time(s) Get Free Content For Your Site

Everyone wants to be on top - whether it's a small company or a small employee! Most people seem to have the perception that "Bigger is Better", but recently this perception has changed, and the revolutionary concept of "Small is Big" has arrived on the scene.

It is usually true that the bigger you become the more profit you'll earn through a higher overall sales threshold, and the more efficient you get in your operations, the greater status you will eventually achieve. But there is another side to this example - something truly unfortunate, which is that the bigger you become the more overall risk you'll take on, developing increasingly rigid and unmanageable individual client relations.

Small firms are much more focused in their approach because there is a much greater possibility of innovation and experimentation in their in-house operations. These small firms might not be able to utilise the benefits of "global economics", but they are definitely open to "local economics". In the present scenario small businesses are more profitable and growth oriented, as they have the potential to earn significant levels of profit and growth - at unprecedented levels, which percentage wise, big businesses cannot possibly match.

Small businesses are far more flexible than big businesses, and they can easily adapt to almost any changes if the need arises, as they are able to rapidly implement informed decisions in a short span of time. Small businesses are successful because they know what they are good at - and they do it, effectively and efficiently. They can serve the needs of their customers in an ideal fashion - regularly sharing personal interaction, with the usual result of a growing number of long term relationships. Small businesses have actual direct communication with their employees and stakeholders, giving them much more control over their operations so they are better able to integrate and coordinate all sorts of activities.

Also, with respect to the stock market, there are numerous occasions where we find that stocks of small companies consistently outperform the stocks of their big business counterparts. Their stocks can often earn high returns for their shareholders and occasionally may even be less risk-prone. During really adverse conditions of the market, there is also far less impact on their share prices compared with the stocks of large corporations. So what do you think, what matters most - thinking big or becoming big?

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