When Apple was first founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, the business partnership counted only 3 employees. Rapidly, Wayne left, reducing the number of employees to two. Yet, the once small company still managed to become the beloved multinational corporation we all know. While the history of Apple is long and includes many twists, the key lesson is that neither Jobs nor Wozniak thought of Apple as a small business. They treated the company as a big player from day one, even securing supply agreements to launch their first computer.
While it makes sense that a small business doesn’t compete against the brand awareness, market position, and capital of a large company, it doesn’t mean you can’t make big plans for your new venture. Apple is only one of the many famous names that have started small and built their ways to the top. Google, Microsoft, Starbucks, Dr Martens, and many more share a similar path. The right business plan, the right skills, the right product at the right time, all these will play a decisive role in the growth of a business. But the key element to turn your small business into a big brand is to start thinking of it as a big player already. Here’s why it matters:
There is no small risk
The belief that big companies and small companies face different threats is absurd. More often than not, businesses of all sizes share similar challenges. Yet, cyber-security, physical security, brand perception, and even insurance liability are real everyday challenges that could affect any company. Consequently, even a small business should receive the same level of protection as a big company. Indeed, cyber-security breaches can affect any company. Yet, big companies are more likely to survive because they already have a recovery plan.
Banks prefer big businesses
No business can survive without funding. Unfortunately, acquiring the necessary financial support is no easy task. Money-lending institutions prefer large and long-established businesses that already have a solid trading history. As a small business, you will need to convince banks that you are a reliable borrower. Your business plan will do most of the talk on your behalf. A successful business plan needs to include a realistic forecast of sales and profits. Startups and new businesses can’t provide past data of their success. Yet, they can demonstrate that they are planning for the future.
Yet, depending on eligibility, even a well-designed business plan may not be sufficient for a successful loan application. That’s precisely why it’s essential to give your small business the chance to access a big budget. You can also find a form of guarantee for a commercial loan, called a bank guarantee. While the cost of leasing a bank guarantee can seem high at first, it’s important to understand that the guarantee can enable you to access more affordable and varied loans in the same way a big company would.
You miss growth opportunities if you think small
Small businesses represent approximately 90% of businesses. However, while many small business owners develop excellent industry knowledge and practical skills, they fail to grow their presence. They miss growth opportunities because they don’t always take the time to apply management, marketing, finance, and organisational behaviour psychology to their ventures. They plan for everyday business processes and rather than looking for new profitable strategies.
In conclusion, it’s time to turn up the dial on small businesses. You are only as small as you let yourself be!