Neither small nor mid-sized companies were the focus when modern business was created. Instead, large corporations have large budgets for marketing and operations, hire the most talented professionals in their respective fields and have access to the best resources available. As a result, large corporations can easily experiment, make costly mistakes, learn from them and move on quickly. By contrast, many small businesses do not have this capability.
However, small businesses do not struggle because they do not have enough talent or ambition. Instead, they struggle because of their limited access to resources. In many cases, small business owners have limited, if not no, access to information, systems and consultants that larger companies take advantage of. As a result, over time, this disparity between small and large firms will close, and therefore, small firms will be able to compete with the larger ones more effectively.
The Real Gap Is Access, Not Skill
Many small business owners possess as much capability as do the leaders of large companies. However, the main difference between the two is that most small business owners lack an ecosystem of support that allows them to make good business decisions. An ecosystem that supports small business owners includes:
– Trustworthy consultants,
– Proven systems and processes,
– Networks with peers in which real-life experiences are shared.
As a result, small business owners end up spending their time managing their day-to-day operations while simultaneously planning for their future success. The reality is that this leads to stress, slow growth and a lack of ability to take advantage of business opportunities. What small business owners truly need is access to the systems and knowledge that are already in place and have been proven to be successful.
Utilising Technology In Small Incremental Steps
Small businesses can take advantage of technology without having to spend large amounts of money. The best thing that a small business can do in order to use technology is to begin with small steps and progressively add on to their use of technology. Many common technologies are able to provide automation for small daily operations such as sending invoices, responding to customer enquiries, preparing simple reports, etc.
AI-based technologies are available to help save time and improve service. The most important thing to consider in selecting the right software for use in any business is the fit of the technology into the existing systems because small incremental improvements can create a noticeable cumulative benefit over time.
Establishing Systems To Support Company Growth
Many successful businesses are unable to continue growing beyond their current level of operation because all decisions must be made by the owner. The establishment of clear systems will resolve this issue. Using written processes and simple project management systems and establishing a set of standards for operation creates an impact on business operation.
When you have clear systems, it is easy to delegate responsibilities and tasks; therefore, a business can continue to grow and develop without the additional stress placed on the owner. Strong systems allow a business to turn chaos into order.
Small businesses tend to only think in terms of current issues and challenges, while the most successful businesses allocate time to think ahead. A small company would benefit from spending just one hour per month developing a strategy to help identify current and future trends, create a plan for better decision-making, and minimise costly mistakes.
By being proactive rather than reactive, planning ahead allows small companies to build their resilience and confidence in the midst of uncertain markets.
The Benefits of Peer Learning
No business leader can achieve success alone; all large corporations have boards of directors and use consultants in some way, whereas most small business owners are forced to work in relative isolation from one another.
By connecting with other small business owners, they can share information about how to best address issues and provide each other with honest, unbiased feedback and accountability. Peer groups allow small business owners to be more efficient and effective in growing their business faster than if they operated alone.
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