I recently had a conversation with someone explaining why I plan to keep my business, a PR agency that represents tech startups, small. Now mind you, even though this person didn’t start a company, they kept insisting I should strive to be one of the largest agencies in the world.
My response? Absolutely not.
The entrepreneurial dream is the bigger, the better, and growing fast and global expansion are the end goals. This idea has never even crossed my mind. I respect companies that have scaled to incredible heights, and many of my clients have done just that.
5 Reasons to Keep a Small Business Small
- You can build a niche in a crowded market.
- You forget a deeper connection to clients.
- You can offer better customer service.
- You have lower overhead.
- You have more control over when you work and with whom.
But growth brings its own set of problems. Founders lose touch with their clients, their missions and sometimes even themselves. Plus, big doesn’t always equal success. Too-rapid growth and overambition have killed many companies.
On the flip side, small doesn’t mean small impact. A solopreneur-led digital marketing agency, app or web development company can stay small and still make a big impact for its clients. Here are five reasons to seriously consider keeping your small business small.
You Can Build a Niche
Being the founder of a small business allows me to choose the companies I want to work with and the people I want to represent. For example, I only take on clients that are making a positive impact in the world, and I’m deeply moved by companies started by BIPOC or women. If I’m not motivated or inspired by the people building and innovating, I don’t work with them.
This approach has benefited my business in two ways. First, I’ve created a niche and specialty. My business, Brennan Nevada Inc., is the only New York-based Black, female-owned PR and media agency for tech companies and startups.This niche and my client base of large BIPOC-owned businesses, helps my brand stand out in a sea of PR companies. Basically, it gives me an edge on the competition, and there’s plenty of that in New York City.
Second, if I’m excited about a company, its leaders and its mission, I will do the best possible work for them. My clients benefit from this top-notch work and so do I. I’m much more satisfied at work and in my day-to-day life.
You Stay in Control
As a small business owner, you get to do things how you want, where you want and when you want. You get to set the goals, plan the strategies and execute the way you know is best for you and your clients. You can take valuable recharging time when you want to, schedule meetings when it’s best for your brain, and even take prospects to lunch without getting permission (and an expense account) from your manager.
Again, this benefits you because it gives you peace of mind. And it benefits your clients because they always get you at your best. You don’t have the headaches and stress of dealing with hierarchies and ridiculous rules, most done “because we’ve always done it this way.” You can make decisions faster, a huge benefit for your clients. And they can trust you because you answer to yourself, not a board or investors or a leadership team.
Your Clients Stay Comfortable
When a company grows, it changes, whether the founder likes it or not. Change means more employees to manage, more forms to fill out, more people to keep happy. That directly affects the role of the founder and not always in the way they want it to. With growth, founders can even lose sight of why they started the business in the first place.
With a small business that has one leader and one person making decisions, clients are comfortable. They get to know you and your strengths and you, in a way, become part of their team.
Your Overhead Stays Low
Sure, large companies’ bottom lines tend to be much higher than a small business. No secret there. But consider all the expenses associated with running a business. Salaries. Benefits. Business insurance. Office space if you’re not fully distributed. Travel and expenses. Continuing education. Fun stuff, like holiday parties and swag.
Small businesses have lower overhead and less infrastructure and need fewer resources needed to get the job done. I can work with a laptop on a plane; with more staff, I’d need a computer network and probably an IT person. Again, more hassle, more expenses.
Staying small means that you have the only stake in your company. For example, I don’t need to pay for a full-time lawyer or accountant. I own all of the shares of my business and payroll costs aren’t draining my bank accounts. At the end of the day, financially my company performs as if it’s three times the size it really is.
You Can Provide Better Service
Small businesses rule when it comes to customer service. It’s more direct and responsive. Customers get the CEO on the line, not a chatbot or call center. I don’t even have to say what a huge benefit this is for clients and how this differentiates my company from larger companies in the same industry.
When I worked for bigger agencies earlier in my career, the founders were never involved in the actual work on an account. This discouraged clients, who wanted to have that senior executive involved. Small businesses have the opportunity to understand their customers’ needs on deeper and nuanced level that larger companies can’t match.
Small business founders provide the attention to detail and unrivaled personalized care necessary to keep clients happy and renewing that contract year after year. Customers want to feel that they’re your priority and that you are personally nurturing them. That forms longer relationships and in turn, a loyal client base.
Your small business might be the kind that grows with you maintaining your vision, your well-being and your sense of self. If it does, congratulations.
If it doesn’t, you’ll join me in the hall of happy and successful small business founders. Take it from me: Stay committed to yourself and your ideals and the clients — and dollars — will follow.
