The Advantages of Building a Small Company in Favor of a Large One


Almost every entrepreneur dreams that once he or she builds a company they are going to go big. Yet, having a small business where all the activities run smoothly has its advantages.

There are dozens and dozens of articles on the web on how to massively expand your company and become a rock star entrepreneur that everybody likes or envies. Yes, there are a lot of challenges and obstacles that stop you from building a behemoth company and becoming the next Bill Gates or Mark Zuckerberg.

Still, there are a lot companies with less than 30 employees that are sustainable, bring in a nice profit and create lots of innovative concepts. To remind entrepreneurs that bigger isn’t always your best option, I decided to offer you three solid reasons you may wish to keep your business smaller.

1. As a small company, you have the upper-hand when it comes to agility. Large companies are pretty much like a big ship and when they need to make a turn, they do it slowly. A small company with great resources can easily shift to meet the ever-changing market environment, whereas large companies pretty much compartmentalize the tasks to ensure that most of their employees have a limited capability scope.

In small companies, the truly great employees are offered a large array of opportunities. They are able to learn things quickly or take on other responsibilities along with their daily work schedule. The moment the business environment changes, you have to do the same thing. Otherwise it could spell disaster for your company.

2. The company culture. My mentor once told me that the effort behind moving people forward becomes that much harder by the number of people involved. Thus, by maintaining your company small, you are able to stay in contact way easier with the people within your company. You can know everybody’s name and can easily share your vision. And if you are able to implement it correctly, you will get every single employee working and fighting to achieve the goals and objectives of the company.

3. Last but not least, control is more manageable within a small company. There are a lot of solid reasons regarding the merits of controlling your own company. When you want to create a large company, you will have to sacrifice control and even ownership so that you are able to raise the necessary funds.

If you feel like you are up to the task of handling the decision process on your own and providing all the necessary resources, then a small but profitable business is your best bet.

Hope you found this article useful. Good luck!

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