Well-established companies have many advantages before starting businesses: from being able to operate with larger capital through maintaining strong relationships with long-term loyal clientele to having bigger market share and producing variety of products in different areas. To compete with large companies can be very intimidating for entrepreneurs with limited resources who devote all of their efforts and time to the development of the product. But, as there are two sides of every coin, startups also have competitive precedence over large companies and five of the most important advantages are as follows:
Startups attract the best talent
Many talented, skilled and experienced people choose to work for startups over the opportunity to join the corporate world by accepting the high-paying 9 to 5 job. Startups offer to the employees more flexibility, the chance to express their creativity and the freedom to share even their bravest (or craziest) ideas. All of this, along with the thrill of being part of an innovative company that is making a difference in the market, can be extremely compelling to talented people, who are not afraid to take risk and are brave enough to jump into the entrepreneurial world.
Startups create the best teams
Hiring top talent doesn’t guarantee success. It is important for startups to have a strong team of employees, who share the same mission and ambition and work cohesively together. In large corporations, everyone is trying to get upfront the rest of the team in order to guarantee his/hers place up on the corporate ladder. Startups have smaller teams, which makes the communication much easier, while in large corporation often the teams are so big so one part of the team doesn’t know what the other one is doing.
The ability to start over when necessary
Building a startup is very risky venture, which has many challenges. But business in general is risky – there is always a chance for something to happen that could disrupt the whole industry or to crush the whole market. While for big corporations that have build reputation over the years and have well-established business models, it is almost impossible to start all over again, for startups it is much easier to pivot and to take a new, better, full of more opportunity direction with their businesses.
Startups build better relationships
Startups need to establish good relationships with their clients, with potential investors and with partners and business advisors. One of the biggest advantages that small companies have over big corporations comes from the fact that entrepreneurs are personally involved in every aspect of the business, making them the face of the company and the representatives of the brand. It is a common practice for the entrepreneurs to personally communicate with the clients and the business partners, giving the opportunity to create solid business relationships and to build a powerful loyal network.
Faster decision-making processes
The big corporations have a complicated hierarchy. It takes a lot of effort to get the approval for every major decision that needs to be made, which can be time-consuming and can make the business cumbersome. Having creative, innovative ideas and the ability to act on these ideas fast are some of the great advantages, which small businesses have over big corporations. The decision-making processes are much faster in startups, which is not only saving time, but also giving the chance for the leadership to create better action plans without to waste extra hours for it.
