Nowadays, almost every individual with the spirit of entrepreneurship wishes to open a small business. But most of these individuals often get demoralized when conducting due diligence like- assessing startup costs, and market research. Though there are few drawbacks to opening a small business, it also offers some of the impressive and distinct benefits.
Here are the top 6 benefits of owning a small business-
- Low overhead costs
If your business is small, then it only requires a few resources in maintenance and operating it. The low overhead costs enable you to offer a much lower price and even undercut a potential competitor if any. Within a constrict niche, you can outsell prominent organizations by getting a higher percentage of the business.
- Faster response time to customer needs
It is highly unlikely in a small business that difficult customer problems will fester and the owner will take appropriate action accordingly. The large organizations often take a long time to address the customer’s complaints. With no complex bureaucracies filled with various procedures or lengthy chain of commands which is common to large organizations, being a small enterprise, you can respond quickly to the customers’ problems.
- Quick reaction to changing market conditions
Flexibility often relates to the ability to react swiftly to the changing market conditions. Due to the modest size, most of the small scale organizations are compelled to be innovative if they want to compete. As the small organizations lack resources, so the only way to compete is by coming up with something creative and new. As mass marketers can’t react quickly to the rapidly changing market conditions, but you can. To make significant changes in your billing, inventory, or new product readily respond to the changing customer needs.
- Liability and Taxes
As a small scale enterprise begins to expand, it can take benefit from legal protections by either incorporating an LLP OR LLC. In this way, you will be able to shield your assets and finances from the small enterprise debts, and liabilities. In addition to that, you can also take benefit of various tax deductions by writing off qualified expenses such as- the business loses, and equipment purchases.
- Able to work closely with the customers to rectify the organization’s shortcomings
In MNC’s, there is often a vast gulf between policymakers and the customers whereas in small enterprise owners are on the front line and policies can be changed as per need. You can monitor customer feedback to take the lead in the game, especially for those who have switched from big to your small organization and respond to them accordingly.
The above-given benefits are way more than listed above and are also the key to excel against the big lads is to do things that they don’t do.
Varun Datta is one of the leading entrepreneurs and the visionary behind a renowned firm 4New Ltd. His wide area of expertise enables him to help traders make successful investments.