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Growth is always a major goal for businesses. Whether you work by yourself or have a small team by your side, it makes sense that you would want to increase the size and scope of your operation. Of course, though, there are plenty of perks that come with being a David amongst Goliaths, and there are issues that large companies have to deal with that are completely foreign to the little guys. To give you an idea of why you might want to keep your business nice and small, this article will be exploring some of the challenges big companies face each day.
Large companies tend to have a lot of employees working for them, and this means that they also have a lot more people leaving them than smaller businesses do. Whether someone gets fired or chooses to leave their job, they can file for unemployment if they are unable to find something new. Your state may take this money from your business, forcing you to invest in software to help you through this process and ultimately costing you on a long-term basis. Small companies can also suffer from this, though the more employees you have the greater the chances it will happen to you.
As companies start to get larger, they often need to look for funding from investors and other groups. To do this properly, though, you won’t be able to remain as the sole owner of the company, and it’s common for businesses to set up boards so that they can assign important roles to different professionals. This gives you less power over the company you’ve worked hard to create, while also creating the risk that you could eventually be ousted from your position if you don’t perform as expected. This can take the freedom you have as a business owner and turn it into something far more similar to a normal job.
Governments around the world work hard to make sure that companies can work on a level playing field, prompting new laws and regulations that can make it hard for a company to operate properly. The largest companies out there often get targeted with rules specific to their work, with examples like Amazon and Google under the constant threat of new laws. Of course, this can still impact you as a little company, but making a large amount each year will certainly paint a larger target on your back. In some cases, these sorts of rules are put into place because large businesses are genuinely abusing the system, though this is a separate issue.
With all of this in mind, you may want to think twice before rushing to expand your business. It would be wrong to ignore all of the benefits that come with large companies, but you need to weigh this up when you’re planning your work to make sure that you don’t make costly mistakes that will make it hard for you to keep operating into the future.
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