Today every business is competing at a global level whether they realize it or not! The ease of communication and distribution has opened the doors for smaller companies to compete with the giants. Which then raises the questions of how do I compete with larger companies? What advantages and disadvantages am I facing?
Understanding the Differences: Corporations vs Independent Business Owners
Many business owners ask about the differences between a corporate business and a private business. The quick answer is simple; business fundamentals are the same, leadership, planning, financial accountability, execute efficient processes that drive sales, profits, and cash flow, repeat. In reality, operating in these two worlds is vastly different.
The Problems of Scale
Business owners that have the basic business fundamentals down are still faced with scale issues. Are you large enough to have easy access to capital? Do vendors provide you with the best terms? What is your negotiating leverage? Are you viewed by customers to have capacity to consistently keep supply flowing? Do you have access to quality talent, employee benefit programs, training, manufacturing, marketing, and other resources to keep you competitive?
As important, independent business owners must guard against the risks of operating in a vacuum. There is no one to learn from, strategize, share ideas, or provide alternative opinions. Owners may become fixated on what has worked and resistant to change. Command and control styles can take over, making it more difficult to evolve, or attract the necessary talent for long term growth and even survival.
Fighting the Problems of Scale
Independent Owners can gain access to new resources and support by participating in local business incubator groups, economic development councils, business alliance groups, business masterminds, learning opportunities, local university programs, etc. Collaborating and building partnerships with the local business community can provide insights into emerging market trends, new business solutions, access to talent, and other issues of scale. Being active in the community offers an opportunity to listen and learn; avoid operating in a silo and maybe even develop a new way of thinking.
The Advantages of Scale
They say speed to market is valuable. There is also the alternative view that being second will save money by avoiding the mistakes of #1. Corporations rely on a process of detailed planning, cross-functional agreement, capital allocations, etc.; Innovation is slow to develop and if not maneuvered adeptly through the process, can be derailed entirely.
Independent businesses have the advantage of making mistakes that are less costly. In fact, most entrepreneurs work on a trial and error basis. Speed is their friend, the decision making process for independent business owners is simple and quick. There are not a lot of people to involve or approvals needed. Implementation can be achieved in a matter of days.
A Recipe for Success for Independent Business Owners
Try… Fail… Adapt…Innovate
Learn from your failure
Determine how to fix it
Build on Learning’s
This process will ultimately lead you to success!
Independent Business Owners are “idea people” with an “I will make it happen” attitude.
They are the foundation of our economy and accomplish what large corporations do with limited staff, resources and knowledge. Independent business owners use hustle, an unquenchable thirst for knowledge, and a never give up attitude to succeed. They can adapt on a dime and are extremely loyal to their employees. They are recognized as the innovators of business.
Would you like to learn more or review your plan for success?
Contact me to review your plans.