Company of One

Latest posts by Lori Williams (see all)

At one time landing a large corporate client was the golden goose. Today, that may not be the case. Working with smaller companies is often more profitable, not to mention enjoyable. More importantly, given the trends it may offer the best opportunity for growth.

According to the latest data released by the SBA, “In 2011, there were 28.2 million small businesses, and 17,700 firms with 500 employees or more. Over three-quarters of small businesses were nonemploy­ers; this number has trended up over the past decade, while employers have been relatively flat.”

(Nonemployers refer to businesses with no employees. To see report click here).

So what does this mean?

The report is good news for companies that target small businesses. Trends suggest this market will continue to expand providing a myriad of future opportunities.

Contrarily, if your company targets larger corporations the report may yield some concerns. Given the lack of substantial growth in this sector, there will be less capital available to invest in new products and services. As with most competitive environments, this could lead to pricing pressures.

With that said there are inherent advantageous and disadvantages when working with small businesses.

On the positive side, given the lack of internal politics or lengthy purchasing processes, the sales process is less cumbersome. It is easier to get direct access to the decision maker and owners of small businesses tend to make faster decisions.

If your company offers an innovative or unique product you may have a better audience. Entrepreneurs of smaller companies tend to be early adopters, open to try new products. The type and terms of the relationship can be negotiated. Small business owners are open to partnerships that benefit the growth of both companies.

There are also some negative aspects to consider. If your product is a higher priced item, smaller businesses have less access to financing options. Owners juggling a myriad of task can get easily distracted causing delays in making a final decision.

Smaller businesses, especially start-ups have a harder time balancing cash flow demands and may stretch payments beyond the desired terms. Since smaller companies buy at a reduced volume and frequency, you will need to target a larger number of customers to meet sales goals. Moreover, since these companies are often home-based they are more difficult to reach via traditional sales and marketing methods.

The company of one is a growing and highly lucrative market. It is beneficial for companies of all size to develop a strategy to work with these smaller entities. In fact, if trends continue it may become more than beneficial—it may become necessary for survival.

Lori educates and inspires entrepreneurs. Her company Business Simply Put provides information, advice and tools to succeed in business. Whether you are starting a company or growing an existing business, these tools will define your pathway to success.

For more information visit www.BusinessSimplyPut.com or send an email to [email protected] She loves to hear from inspired entrepreneurs!

Total
0
Shares
Previous Article
Mom Entrepreneur

Mom Entrepreneurs – Listen up!

Next Article
business on main street

Branding your Business

Related Posts
monitors
Read More

How Monitors Deepen Your Employee Experience And Boost Results

In this ever-changing world, and through the rise of remote working, a good employee experience (EX) can come from many places. But Forrester’s research shows that the hallmark of a good employee experience is always the same — it empowers, enables, and inspires employees. Organizational awareness on the importance of EX in driving business results...
press release
Read More

How to Write a Press Release Editors Won’t Toss

You think your company news is a big deal but will an editor feel the same way?  Getting your press release published for free online in a newspaper or other media isn’t a sure thing. The decision to print or delete business news often pivots on the value placed on it by an editor or...
homepage
Read More

How to Ensure Your Homepage Helps Your Business Reach Its Goals

If you want your online business to flourish, you need to ensure you get your website’s homepage right. This is because it will provide the first impression people get of your brand, and you’ll need it to be a good one.  An excellent homepage will help your small business grow by facilitating the buyer’s journey,...
content
Read More

As You Scale Your Business, What Role Will Content Play?

There’s a startup renaissance going on right now, and it doesn’t seem to be slowing down any time soon. 2021 was a record year for U.S. venture capital, with investment nearly doubling year over year and first-time, early stage financings on the rise. But that doesn’t mean it’s getting any easier to start your own...