Small is the new big in business

I read a heartening article in Harvard Review that makes me think that life is tidal.  When large companies are winning all the business and riding high, the smaller ones are left fighting for the scraps they leave in their wake.

Peter Bregman is starting to see a new trend in the US.  Since Lehmans, AIG and the long list of big companies have gone to the wall he has found that we simply don't trust companies anymore. We trust people. And in big companies, it's hard to even find a person to trust as we scream "operator" into our telephones only to get transferred to another menu whose options have changed.

That gives small companies a huge advantage.

He uses the example of John Drummond, who started Unicycle.com after getting laid off from IBM during the last downturn. Once he got the hang of it, he started Banjo.com, his other childhood passion. Both are doing well and he's about to launch more sites.

There are hundreds of thousands of businesses like John's. Small companies that aren't making millions but provide a good living for the people who work in them. Niche companies whose owners are trying to build sustainable businesses they love rather than fast-growing companies they can flip. They have no intention of retiring. They like working in them. And their clients know that. Which is why they have a loyal customer base willing to invest in the relationship.

Big investment banks are burning – but lots of small boutique firms, each with ten to twelve people, are opening up. And they're doing well. They've gone back to the fundamentals. Finding a niche in which they have value to add and deals in which they are experts, building the relationship, making reasonable commitments, and most importantly following through.

Small companies with low overheads, reliable owners, a small number of committed employees, personal client relationships, and sustainable business models that drive a reasonable profit are the great opportunity of our time.

As a careers advisor to the many individuals being made redundant from companies both big and small, we explore their passions and transferable skills which often results in that Eureka moment – "I'll start my own business".  Why not?  There is so much support out there in terms of grants and business advice for budding entrepreneurs.

The new slogans to take away with you are: "Small is the new big", "Sustainable is the new growth", "Trust is the new competitive advantage".

If you are thinking about a change in your career, why not give us a call on 01780 484910 or visit our website.  As facilitators for government funding we might be able to help you realise your dreams.