Should every small business owner have big ambitions?
Certainly, most people who buy or start their own enterprise, whether based at home, the high street or the web, has dreams of being a success and growing their business. After all, every large high street store, every national or international chain and every top name on the web started out as a small, obscure business.
However, how can any small businesses succeed in a world that seems dominated by big brands, big names and colossal empires?
It can certainly frighten off many people who see the world of business like the ocean, with sharks round every coral reef, and danger lurking in the dark depths. Add to this the current economic climate in which seemingly secure names have crumbled, and even entire nations have found themselves crippled (for example, Iceland), and many would-be business owners might think this is a bad time to get into business.
Quite simply, small business owners have an advantage which large corporates don’t
Taking advantage
However, this is a defeatist attitude that arises from several false assumptions and myths, and those who believe them may never make it into business, whatever the market conditions. Let's look at the truth, why these assertions are untrue and how you can turn the uncertain economic climate to your advantage.
To stretch the marine metaphor just a little longer, many aspirant entrepreneurs believe any enterprise is doomed to failure, because of the great sharks dominating the waters of business. If this were true in the literal sea, then there would be no fish and chips, no marine life, nothing except sharks.
But the ocean is vast, and while sharks may be at the top of the chain, there is room for a plethora of other marine life, so clearly there are ways to survive. Fish survive by staying alert, being mobile and developing defensive responses to threats.
How does this translate to the world of business then? Quite simply, small business owners have an advantage which large corporates don’t.
Greater size is a benefit in some contexts, but it can also be a handicap, reducing flexibility, manoeuvrability and adaptability. Small businesses can adapt, innovate and change strategy more quickly, taking advantage of trends, developments and niche markets.
Burdened unavoidably by greater bureaucracy, for large businesses to change course is sometimes akin to an ocean liner turning round.
Adroitness
An entrepreneur might see a niche market emerging and immediately flood the market with relevant content, links, pay per click adverts and search engine-optimised content to capitalise. By contrast, larger stores don't always have their online ear to the ground, especially when reacting to changing markets involves several boardroom meetings and management discussions before anything can happen.
Small businesses which exploit their inherent adroitness can appear higher in search engine results than international corporations.
However, what about the dire state of the economy? Surely bigger businesses are more resilient and can even benefit from a downturn, as they have greater reserves of capital when profits dip, while smaller players go under, allowing them to increase their market share?
But, and this has perhaps been one of the biggest surprises, numerous famous brands have crumbled in the last 18 months. Many have gone into administration or left the playing field altogether, while others have sought rescue packages from the government.
What of the pressures facing the small business then? Surely this isn't any less significant?
The better run small businesses have been nimble in responding to tough market conditions, by reducing prices or introducing recession-proof products.
Starting up or developing a small business in a recession demands that you be perceptive enough to understand which markets will be resilient and which promotion strategies will be effective. Putting themselves in the position of the consumer can help entrepreneurs make these decisions, and keep the business adapting to changing markets, while some behemoths plough on stubbornly in the same direction.
