Keeping It Simple: 4 Advantages of a Small Company
It might be very tempting to turn your small startup business into the next billion worth company. However, this might not always work for everyone. Having a big company can be stressful in the longs run. The bottom line may be alluring, but the periodic planning and supervising you’ll face will be much harder. Sometimes, it is better to keep things simple.
This article outlines the benefits you will reap if you keep your business small. Here are the top 4 advantages of a small company.
Growing your company can mean different things. One example of business expansion is by increasing your product lines. This means that you’ll have more varied services or products to offer. For instance, you can expand your lipstick business by adding lip and cheek tints to your array of products.
However, this adds more work for your business. You may have to look for new ingredients and hire more people to produce the formula. This is another work to oversee. And if you already are having issues in producing your original products, adding another may not be favorable.
Quality control is one of the advantages of a small company. A small company may mean fewer products, but it would also mean more time to ensure your products are top quality. Quality products will then ensure that customers patronize your products.
Flexibility is important in being a successful business owner. When circumstances change, you want to be able to adapt immediately to prevent greater losses. The business has many risks, so you would want to be prepared and flexible when a disaster affects your business.
Keeping your business small makes your company more flexible. For example, let’s compare a partnership with 3 partners and a corporation with 15 stakeholders. When management deems it crucial and urgent to change your business location to a metropolitan area to make your services more accessible to the public, this big change will need the approval of the owners.
In a corporation set up, the corporate secretary will still have to go through corporate protocols and call for a meeting at least 10 days before a scheduled meeting. Then this change should be approved by a majority vote of directors and ⅔ vote of stockholders.
Meanwhile, in a partnership, the manager can simply call for all the partners to gather for an important meeting. It can be done as soon as all the partners are available. Further, since there are only three partners, it’s easy to convince them on why this change is important, as opposed to convincing 15 people.
Therefore, it is sometimes more advantageous to keep your company structure simple and small.
A bigger company means more expenses. For instance, if you employ 1,000 individuals in your business, that will incur more salary expenses. Their space to work will also cost you to create or rent more space. Utilities will also be higher with a bigger staff.
More cost savings, in the long run, is one of the advantages of a small business. Even if being a small business means earning only an average income, as long as you’re cost-efficient, you can ensure higher profits.
Fewer HR Issues
Keeping your staff small is an advantage that business owners sometimes forego. Because the more employees you have, the more difficult it is to manage. You will have to ensure they are all competent and to ensure this you will have to train them. Disputes among staff are not uncommon, therefore you will have more of these issues if you employ more staff.
Keeping a small staff, whom you trust to be honest and dedicated to their work is always better than a large mass of people you can hardly manage.
Company Growth Without Complications
There are many different ways to keep your business simple, while still making sure you’re growing and profitable. Do you need professional advice on how to expand your business without complications?
3E Accounting has expert teams to help you with your business needs. We offer Philippine incorporation services. Let us help you reach your goals. Contact 3E Accounting today to know more about our services.