The Business Formula – Part 8

Less Mass = More Flexibility

In business, often a smaller upstart competitor can take on a giant due to the advantages of being flexible.  Being small is not always an asset, but using your size to be flexible is a HUGE advantage in the modern business world.

Lets start with a few advantages smaller companies have over larger ones

1. no excess staff, and no excess costs

2. no thick processes

3. a collapsed heirarchy, so decisions can be made with few interactions and discussions

4. no lockins for hardware, software, and technology

5. no office politics!

Also, being a new company can have some specific advantages, like fewer pre-made permanent decisions, lack of long term road maps strangling new ideas.

The important thing to remember is that being small and new is NOT a pure disadvantage.  Being small and new can give you some great strategic advantages, IF you pay attention to them and use them for your benefit.