Small Business Firms

This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...

Small Business Firms


For small business firms, this is a great opportunity. See, the big firms are big because their investments are big, their stakeholders are big, their manpower is big, their commitments are big, their dues are big, their profit expectations are big and the risks they take are big. Their whole business model is a big cycle. That is why they are called big business firms. So a dip in their profits will definitely cause a big impact on them. This affects their dues, their commitments, their manpower, their stakeholders and the result is too costly for them to depend on their investment which is why they have so much to lose in this period of uncertainty. Hence they have some major changes to make in their strategies.

Small Firms- Big Hopes

Small business firms have got small investment. The risk is lower here. Yes, the problems you face are similar in nature to those of the big firms. But the cost of recovery and costs to be incurred in making changes are considerably very much lower as compared to your big brothers. You can start by minimising your profit forecast, cut down the price of your product and provide discounts, devise different effective ‘Need of the Hour’ marketing strategies; reduce your distribution channels, apply resource management techniques and simplify the transportation routes to yield minimum costs, strictly adhere at minimising administration costs, and there is in fact so much more you can do if you just sit, calculate your ledger books and analyse the whole thing from a new and different perspective.