Large businesses are the ocean liners of commerce. They are typically steady, lumbering and once they set a course, it takes a Herculean effort to turn them in a new direction. Engines whirl, propellers spin, the rudder resets and gradually the behemoth begins to change its path.
Small businesses are speed boats. They are fast, agile and can typically change course on a dime. There are no committees to determine if a change in direction is required. One or two individuals review the facts, look at possible alternatives and then take action.
Large enterprises wish they could be so nimble. Their leadership bemoans the fact that changes can take months or quarters, usually at great effort and expense. The decision is built on consensus and programmatically addressed by teams that can literally number in the hundreds. Change management is one of the greatest challenges facing large enterprises today.
Conversely, speed, nimbleness and agility are some of the greatest pluses of small businesses. They can make decisions, rapidly implement them, closely monitor their progress and either amplify their efforts, if successful, or change direction if not. Many small businesses, however, do not understand that this agility is a feature that puts them in an advantageous position that can be used to achieve greater success.
Consider these advantages that small companies inherently possess which enhance their agility:
• Streamlined structure: The lack of complexity in small businesses permit streamlined decisions. While they may use data points that are similar to those used by large companies, reaction to them is usually immediate and without the burden of a bloated vertical chain-of-command that can delay or distort their interpretation.
• Competitive edge: customer intimacy, personalization and delightful experiences are all hallmarks of small business that choose to have closer relationships with their customers and prospects. This closeness permits them to change how they interact in real time to maximize results that benefit everyone in the buy-sell process. Large companies perform studies, hire consultants or take similar actions to achieve in months what the SME can do through close daily observation.
• Rapid change: every dollar spent by a small business is critical. They must get the greatest return on their investment to maximize their finite resources. If funding is committed to a small business project, their advantage is in the close examination of the results. Actions corresponding to these results can be immediate based on the situation. Positive results are optimized; negative events are minimized and cash is maximized.
Knowing the competitive advantages is a great plus for small business leaders. At times, they may lose sight of this advantage because of the different items jockeying for attention and the resulting mental clutter. As a small businesses leader, it is incumbent to cut through the noise and realize that your agility is one of your greatest assets. The steps you take can make a difference in your performance and give your company the upper hand over your competitors.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
