Most people have had lots of daydreams at different ages. Remember the one in which you became the idealistic prototype of a person that could never exist in the entire world. In business, we call this desire Entrepreneurial Spirit. In this blog post, you will get familiar with several key points that are combined with the entrepreneurial spirit and help small businesses achieve their owners’ goals in short period.
Thus, which are the small businesses? The small businesses are the ones that are not dominant in their field. These businesses are owned independently. They should have less than 50 employees. In addition, the sales’ revenue should not exceed 10 million EUR. And the asset revenue should not exceed the 10 million EUR (EU standards).
What is the Point of Running a Small Business?
Nowadays, small businesses are keystones of economic restoration due to their opportunities to encourage innovation (2.5 times more than big firms). They increase creativity and reduce unemployment (small firms employ 43% of all high-tech workers). That is why over 99.8 percent of all legal enterprises are small businesses. Among the innovations made by small businesses are air-conditioning, airplane, automatic transmission, FM radio, heart valve, and helicopter. Also, some innovations such as instant camera, insulin, jet engine, penicillin, personal computer, and power steering are also made by small businesses. So, it is up to you to decide whether to start a small business.
Some businessmen will give priority to the amount of money they would earn from a certain project. In a broader sense, small firms bring not only financial profit but also other valuable advantages to their owners. Among them, they create an opportunity for larger firms to become more efficient and responsive to their consumers’ needs.
Although large businesses can meet the “mainstream” needs of big consumer groups, there can remain lots of unsatisfied consumers. Such customers appear to be the target market of small firms because the latter meet the needs of certain small groups of individual customers. Moreover, due to their specific approach, small firms can act as the specialized suppliers of items and services for large businesses.
7 advantages of running a small business
1. Personal relationships with customers and employees
This point makes small businesses much more organized, transparent and efficient. Imagine a city where everyone knows each other. People are very friendly and all their actions become money. It is all about being more specific about everything. Being specific while working with customers, creating unimaginable solutions for each customer that can meet their needs in the most coherent way! Personal relationships among employees turn them into a big family. This fact increases the growing process of a business. In addition, employees start thinking that they are not working on someone and the business is their own so they do their best to make the firm better and more profitable.
2. Ability to adapt to change
Our century is already well-known with its radical changes in every sphere. These include cultural changes, governmental changes, as well as technological changes that affect the unemployment balance. There are also changes among currencies that deal with the big crisis. Large businesses oftentimes face difficulties with overcoming these changes while smaller ones are pretty adaptive to any kind of change. Thus, this point is one of the reasons why it is more preferable to run a small business.
3. Simplified record keeping
Large firms require lots of employees only for being responsible for their huge record keeping process. Small businesses do not need such kind of luxuries because of their transparent strategies and the easy- running process. Thus, this means saving lots of money on record keeping and increasing the final profit.
One of the main advantages of running a small business is the fact that it is your own firm and you are not responsible to other larger firms while doing your work. This means that there will not be any additional taxes or expenses because of other factors.
5. Profit retention
So, there will not be any huge expenses during running a small firm, while larger businesses always require more and more inputs which constantly decreases their profit sum.
6. Ease of a start-up
When people start a large business project they need lots of contributions, money, a complete business, because it has to be perfect in order not to fail the startup. Starting a small business gives an opportunity to your team to grow along with the main project and to refine it day by day. Thus, all you need is a clear mission to meet market needs. In addition, today’s marketing opportunities give all the needed opportunities to the owners of small businesses to make a great PR to their projects due to the social media and their own webpages. Another useful way of raising the awareness among consumers is the use of popups. Nowadays, this tool is most commonly used among all website owners because it represents the new level of marketing of the 21th century.
7. Ability to keep secrets
All the ideas that are founded in big firms usually become plagiarized by their competitors in the future and there is no way to escape it. The point is that employees do not know each other and even the consumers. They do not even know the main message of their work which makes it hardly possible to do their best during the worktime. Great and unique ideas just fly from tongue to tongue, from ear to ear and eventually reach the boards of the business. Whereas smaller business projects are organized in the opposite way. All their secrets are spoken loudly but are kept unrevealed from their competitors or other people.