David Meet Goliath06/25/2021
I recently read an article that discussed the advantages and disadvantages of large and small businesses. The bulk of the article discussed how large companies have more money to spend and create large ad campaigns. The article mentioned a few things that a small business can do to compete, but for the most part, it gave the large companies an advantage. Having worked with fortune 500 companies and mom-and-pop startups, I can assure you that the Davids of the business world have the upper hand more often than they may realize.
Have you ever been to a board meeting of a large corporation? There is no need for sleeping pills if you have. Small companies can make sound decisions much quicker than large ones, often weeks, months, or even years faster. Notice I said sound decisions; anyone can make a poor decision quickly. The amount of time it takes a large company to arrive at a reasonable conclusion is often much longer than that necessary for the smaller company to arrive at the same conclusion. In other words, smaller companies have the advantage of being more agile and quick to strike.
In most cases, small business decision-makers are much more in tune with their customers than their large business counterparts. Small businesses have an opportunity to be more on target and less wasteful when it comes to promotions and advertising. You can see why a large company may need a bigger ad budget.
Small companies tend to be more regional, which allows them the luxury of relatively easy travel and accessibility to clients and customers. Large companies tend to be more national or international in scope, increasing travel and reducing regional awareness of consumer needs.
There are many other areas in which small companies have advantages over large ones, but the most obvious is in the arena of client relationships. A small business knows or should know what concerns members in their community are facing. A small business can help with local and area fundraisers, join area committees, and help where help is needed. A large company doesn't have much of a chance when competing in this area. Sure corporate donations to area charities have an impact, but who do you buy from, the company that donated to the Red Cross after a local disaster, or the neighbor who helped you clean up and brought you supper?
Just remember, while Goliath was asking David what he thought he would accomplish since he was so small, David picked up a stone and showed him.