One of the greatest challenges that any small home service business faces is survival. Maybe this is a constant, day-to-day worry or just an occasional concern about where the next order for your services is going to come from, but the risk is still there. In a typical small business, cash may be tight, operating budgets and investment opportunities limited, orders may be hard to find, and suppliers can be demanding payment. If things aren’t going to plan then the business’s survival, and your own livelihood are both threatened.
Regardless of whether it is a constant or occasional stress, the fear and risk of failure never completely leave us. So what is the answer? Build a bigger business perhaps? There is no doubt that a competently run “big” business solves many of these challenges by giving access to more funds; more power; greater personal wealth; and increased leverage over suppliers and the market. A position of power is desirable but long-term survival is still not guaranteed.
With size, come bigger challenges and more pressure to succeed. But success is not granted forever. Take Microsoft as an example of a “BIG” company who once dominated the software market, leading the way with their Windows operating systems and Office packages, the Microsoft technology stack, and a wealth of other innovative software solutions. Microsoft brought personal computing to the masses both at home and at work. In recent times however Microsoft has been under multiple attacks from the likes of Apple, RIM, Google, general anti- Microsoft sentiment, and the law courts.
Today, despite their size and past successes, Microsoft faces the very same challenge that many small home service businesses face; survival.
There is an increasing sentiment and expectation that Microsoft will collapse. Maybe not imminently but the warning signs are present. This subject was covered just this week by Business Insider and while their accompanying vision of the future may be somewhat entertaining and implausible, it paints a picture that bigger is not necessarily better.
There’s something unique and beautiful about being a small business; you have the flexibility to make decisions that are in your best interests; you are more agile and can respond quickly to changes and customer needs; there is no constant scrutiny from the media and the wider public. And, when the working day is done, your business is just that: it is yours!
As a small home service business, what are your thoughts?