Tue, April 21, 2009 - 8:00:45

Don’t Knock the Little Guy

Over the past century, in business and in life, BIG has confidently held its place as the be-all, end all of most people’s dreams.  As individuals we strive to be the big man on campus, for the big and shiny SUV, the big house on the block, and even the big diamond ring.  In business we’ve also made BIG our goal. We go for the big accounts, we expand, and we tackle the globe. After all, no matter what the context, “bigger is better”, right? But recent times have shown us that maybe all this talk about BIG has been, well, a little overblown.  From prominent economists, to business journalists, and budding entrepreneurs, one counter-intuitive idea is making waves: SMALL is the new big.

In this struggling economy, where the corporate giants that once dominated are struggling to survive,  a number of boutique business operations focusing on everything from marketing to finance are actually thriving.  How are they doing it?  They might not know it, but it all has to do with a little something we call the power of small.  As a recent article on Slate.com so aptly put it, these tiny firms hold a key advantage over their bloated counterparts because they are “lighter, cheaper, [and] faster.” Staying small allows them to cut through the clutter of corporate bureaucracy, operate on a slim budget, and deliver quick turnarounds.  In order to get in the game, these small organizations recognized early on the importance of creating an effective organizational strategy: like our own agency, the Kaplan Thaler Group, they’re lateral, not hierarchical, meaning ideas flow freely and solutions are discovered early.  In addition, where the hierarchical structures of larger corporations create environments of distrust when people are fearing for their jobs, as Peter Bregman points out in his post, “Why Small Businesses Will Win in This Economy,” small business employees who can speak directly with their company leaders convey a greater sense of security. Invariably, and importantly, potential clients pick up on this small cue.

Boutique firms aren’t just strategically smart because they want to be… they have to be. They work shrewdly, project by project, to attain their quarterly fiscal goals.  Instead of looking to land one big deal, they concentrate on smaller, less expensive ones.  They deliver fast results again and again, and in doing so, create loyal followings of repeat customers.  By “thinking small” they’ve been able to capitalize on the continuing needs of today’s changing marketplace, delivering the goods for less.

So big companies, keep an eye on the little guy.  He might be a featherweight, but he packs a mean punch.

Posted by Linda and Robin