Within a crowded marketplace filled with organisations of varying size, how do you choose who to engage on the next important project? A plethora of companies jostle for position in every sector, each trying to differentiate from their competitors.
The advantages a large organisation can bring are obvious- resources, reach, reputation-, but in many instances it can be beneficial to use a smaller company. So what are the advantages of using a small company over a larger one? For starters, a smaller company is more likely to go the extra mile to ensure they deliver for you- ‘small businesses know that their livelihood is based on their customers.’[1] For a small company, such as Firstperson Executive Search & Selection, each piece of work really matters. There is no such thing as a standard assignment or a standard process. A small company is adaptable enough to treat every case as different, tailor its service to fit the particular needs of the client and of that particular assignment, and offer a personalised, consultative service. Of course, ‘big businesses and corporations are important- we need them and their economies of scale, and of course they can do things that small businesses cannot’ [2], but there are also many things that small businesses can do better. A potential customer has to take this into account when selecting who to engage- what kind of service do you need?
As with many small organisations, Firstperson is a small fish in a big pond stuffed with bigger fish. As in nature, small fish are vital- ‘small businesses create two of every three jobs’[3]. And being a small fish has its distinct advantages. Big fish take a long time to maneuver- ‘because of their [inflexible] policies and procedures, because they have to go through such a lengthy chain of command, large businesses often take an extended period of time to react’ [4]; a smaller fish is more agile- and is adaptable enough to reach niches that its larger cousins cannot. Smaller, more flexible organisations have the determined and innovative approaches that allow them to reach a particular niche. Smaller companies have to be determined- they thrive on innovation, and they have to have the bravery to adapt to survive. By way of illustration, Firstperson doesn’t just rely on databases and stock approaches as many of its larger competitors may. The structure of the company encourages the generation of new ideas and new methods of completing assignments. Innovative solutions and decisions can be acted on very quickly, and because successful delivery is so crucial, a smaller company will take the time to really partner with their client, and listen, and can take a consultative stance based on their particular specialism.
A small company depends on its employees- ‘everyone needs to be at the top of their game’[5] because each member plays a vital role. One of the potential problems with larger organisations is that ‘it’s a lot easier to hide bad performers at a big company.’ [6] ‘Apathy doesn’t breed nearly as well in small businesses… small business owners and their workers are focused and immensely proud of what they do.’[7] In addition, ‘large corporations are usually the ones with the weakest customer service.’[8] They have so many customers that it is impossible for them to give them their full and undivided attention, and it can be difficult to get in touch when you need to.
‘It is not easy for small companies to win contracts against larger competition’[9]- but it is possible through offering a unique and compelling proposition and through demonstrating a reliable and incontestable track record. Small companies have to ‘be the same as… [their] competitors and yet at the same time different’[10] , with as many unique features and functions over competitors as possible- at the same time as matching what a larger competitor offers. Smaller companies offer more specialised, personalised services where quality of service and innovative approaches are paramount. Although many solutions can be offered by ‘off the shelf’ products and services, clients often have specific and unique requirements that require a more customised and flexible approach. With attention to detail and more focus on the individual nature of the project, a small company can satisfy this requirement. Their employees are dedicated, innovative, and have to constantly be on their toes. This is not to say that this cannot be true in larger organisations as well, but it is common that ‘innovative small businesses are prize targets of larger corporations that often find it more cost effective to acquire than to innovate on their own.’[11] In addition- ‘small business is not a synonym for small earnings.’[12] Many small businesses are very profitable. ‘Their advantage of leanness, maneuverability, innovation and customer focus mold them into steady enterprises.’[13]
A potential client may have concerns that a small company might not deliver. Firstperson do: we have worked on difficult assignments for blue chip clients and delivered tangible results and influenced our clients’ thinking in the process. These successes are detailed on our website.
Successful companies start off small- if successful, they grow. Recent global success stories such as eBay and Mozilla (with only c. 60 employees) illustrate this. The challenge for the successful small company is in preserving those small company values and systems that made you so special in the first place, whilst at the same time taking on board the new methods, capabilities and advantages brought on by growth. Is it possible to be the best of both worlds?
Gi Lewis
References
Wilson, Dr Ralph F, ‘Small Business Benefits’, http://www.enetsc.com/doctorebiz.htm, accessed 1/9/08.
2 Ibid.
3 Ibid.
4 Thackston, Karon, ‘Small Business: Being Small Gives You Advantages’. http://www.insiderreports.com/department.asp, accessed 1/9/08.
5 Bhan, Niti, ‘Point & Counterpoint on Big VS Small Size’, Does Size Matter, http://sizematter.blogspot.com/2005/09/, accessed 1/9/08.
6 Ibid.
7 Wilson, ‘Small Business Benefits’.
8 Thackston, Karon, ‘Small Business: Being Small Gives You Advantages’.
9 Unknown author, ‘Small Agencies Take On The Big Boys’, www.highposition.net/news/small-agencies.html, accessed 2/9/08.
10 Ibid.
11 Wilson, ‘Small Business Benefits’.
12 Ibid.
13 Ibid.
Gi Lewis
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