Size isn’t everything. Even if you’re growing your business, keeping overheads low and your payroll lean can be the key to maintaining a work-life balance and increasing profits. In fact, to many, small is the new big.
Owners of high-growth businesses often have to relinquish hard-earned control and direction. Grappling with the discourse of implementing their organic, long-term vision and delivering quick returns to would-be investors, they quickly learn to compromise – but at what cost?
Truth is, you can increase profits and maintain the lifestyle that running a small business affords without increasing your payroll, overheads or stress levels. In fact, some companies are actually better off embracing their ‘smallness’, staying managed by a single owner, and trusting just a handful of loyal employees.
“Staying small often brings lower operating costs, which in turn improves margins and profitability,” says Kyle Clarke, Director at Start Grow Run. “To ensure profits remain sustainable, grow at a logical pace that is in line with long-term goals. Growth for growth’s sake will eventually stagnate a business, so be sure about where you want to go and how you’re going to get there.”
With the right business model, small business owners can maintain quality control, embrace product and service development opportunities and improve client relationships faster than their heftier opponents. “The leanness afforded to most small businesses can position owners to take a niche foothold in the market,” says Clarke.
Common to many small business owners is the belief that if your business is not continually expanding, it’s at risk to competitors who are. “If your offering is valued and your customer service is outstanding, this won’t be the case,” says Clarke. “The great thing about smallness is that it allows you to pay attention to the details… something bigger organisations tend to lose in the fray.”
While competitors focus on growing in size, invest time and energy into giving clients what they want and are willing to pay for – create new products, develop innovative programs, and provides services that meet market need. By consciously choosing to stay small, you can grow your business organically, which will provide better work-life balance and time to pursue other interests and passions along the way.
So, to those of you who want more from life — more money, freedom, security, and time, consider this: There’s a limit to how much you can save, but there’s no limit to how much you can earn. Just be sure you earn it in a way that’s congruent with what you’re willing to put in – or give away.
For more ideas, insights or information on how to grow and manage your small business, get in touch with Start Grow Run today.
