There are so many advantages of starting a business. From being your own boss, earning more money and having more time for your family and personal undertakings. However, there exists a very clear line between starting a successful business and just a business. The most common mistake that most people make when starting a business is by assuming that the income they get from their businesses will be directly proportional to the size of the business. However, the truth is, your income will be determined by the efforts and planning strategies that you put up for your business. Starting a small business has numerous advantages and we give you some below:
A Close Relationship with Your Clients
A small business gives you a chance of directly interacting with your clients, hence creating a solid relationship with a strong bond. Research has shown that a good relationship with your clients goes a long way in ensuring that you maintain the customers and that you serve them even better. When running a large scale business, on the other hand, you leave most of the things to your junior employees and hence there is never that close touch between you and your customers. This means that you can never know what your customers really need and it will be impossible to satisfy their needs.
Easy to Start
Raising capital for a small business is relatively easy as compared to raising enough money to start a massive business. Most of the people out there have failed to start their businesses just because they could not raise the huge amounts of money needed to start a large business. We advise you to start a business with the little you have, and with dedication, perseverance and good planning, your business will gradually grow and become that large business that you have been dreaming of.
A small business is able to respond to the changes in the market easily as compared to a large business. For any changes to be effected in a large business, various consultations have to be conducted between different players. These consultations will always take a lot of time and hence not effective during emergencies. On the other hand, you are solely the decision maker when running a small scale business. This means that you can make a quick decision and save the business. It is also easy to shift or to change the place of operation when dealing with a small business.
Lower Overhead Costs
When running a small scale business, you only require few resources to start and operate your business. This means that you can easily afford to sell a commodity at a cheaper price, hence attracting more customers. If you plan well, you can even undercut your biggest competitor by consuming the highest percentage of clients within a given niche. A large business, on the other hand, requires massive resources and finances to operate and hence must sell their commodities at a higher price in order to make profits. This scares clients away.