Shrinking Business More Resilient Than Expected

A lot of owners of small businesses nowadays – and their employees as well – are always presenting the argument de jour that the economic crisis or recession of today is showing them something which they have known all along – that businesses can indeed be too big, and sometimes too much of a good thing can be bad for you.

Why Staying Small Can Actually Be Advantageous to Business Owners

As a software developer, Jarkko Laine has enough experience to bank on when he says that there are indeed several advantages to businesses that make the conscious decision to stay small. The first point, he notes, is that there would be a smaller probability of bureaucracy in small businesses. Having a bigger company, according to Jarkko Laine, will naturally translate into several layers of managers in order to keep people reigned in and ensure that productivity is going as planned.

Furthermore, smaller businesses could surprisingly turn out results that are of greater engagement. In having a small company of no more than around seven employees, it can be assured that each member is thoroughly involved in everything about the business. Therefore, it is much easier for people to understand and be aware of the magnitude of their roles, and how such roles posit a reaction to the name and the kind of profits churned out by their company. As such, everyone will know and be aware of the goings on at work.

Intimate Setting Means a  Sense of Ownership in the Company

Furthermore, Jarkko Laine believes that when employees are aware of the bigger picture and are involved in decision making, the changes that result from such are even better than companies who have more employees but have no inkling as to how a particular decision may affect other agencies within the organization. Because of such a mindset, people will feel that they are an important aspect of the firm.

And of course, Kaine’s challenge to these small businesses is that they should try to maintain this small but effective characteristic of their companies. He adds that outsourcing can be a big help as well, as you get the job done but only have to extend full attention and care to a select number of individuals. Being careful when it comes to recruiting people into the company, says Laine, means that you should be selective in including people to be part of such a particular corporate structure. Such a thing would invariably create happier and more productive employees and therefore come up with better profit margins.
When this happens, you can be glad that you have decided to keep small but resilient than grow big and be at risk for deterioration – which is the case that is happening for most companies nowadays.