MBA1636 5 Reasons To Keep Your Business Small

Today, too many patients aren't getting the care they need. That's why UnitedHealth Group is innovating how healthcare is delivered, offering creative solutions that focus on patient outcomes, preventing disease before it starts, making care easier to get and less expensive. Reshaping care to help more people live healthier lives learn what UnitedHealth Group is doing to help people get the care they need@uhg.com mission.

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But for many entrepreneurs, keeping your business small is actually something you should consider. A smaller business might suit your lifestyle, might suit your liking over the competitive nature of of a rapidly growing business. Make a lot of money to scale your business may not be the formula for you. So in today's lesson we discuss what are five reasons why you'd want to keep your business small? The Benefits of a Small Business There are many six and seven figure businesses that I know personally, people that I know as friends that are run with a team less than five. So it's possible. So in today's lesson I want to highlight why would you want to have a small business? What are the advantages? What are the reasons to keep it small? If you choose to let's get into it. Let's get down to business. What are the five reasons to keep your business small? What are the five things that might match your personality, your way of doing business that will compel you to say I want to keep my business small, I don't want to scale. I want to keep my small team and work with what I have. The first one is small businesses with small teams tend to have more control. You have more control over the business. One of the things I realized and learned as I scaled any business, as my team grew, as my customers grew, all that kind of stuff, right where the actual business is getting bigger and bigger is that you start to lose control. The business actually becomes its own thing. It actually turns into its own identity. And I actually learned this early on in my entrepreneurial career by reading a book called Anyone Can do it by Bobby Ansari Hashmi, who started the first coffee chain in the UK called Coffee Republic, before Starbucks jumped in there. And one of the things they talk about is like, a business is sort of like a baby at the start. You know, you have to take care of baby, spend a lot of tension, and you basically can mold a baby, and the baby's really dependent on you. So therefore, you have a lot of control. But as your baby grows, they become more and more independent. And before you know it, you really have no choice but to let go of the baby, let go of your child. It develops its own personalities, and eventually, as it grows, what's good for the baby or what's good for the child is no longer good for you, necessarily. And I love this analogy because it's exactly the same in business. When keeping your business small, you basically remain in control. You remain in total control of the direction, how fast you grow, when you decide to have a sale, not have a sale, when to bring in new customers, when not, you control the valve. But as your company grows, as you have more people on your team, as you have more audacious goals and you become a bigger player in the marketplace, there starts to be things that are out of your control, things that you can't help but do, you have to do them or you don't survive. So if you're somebody who likes to have total control and don't like to give up control, keeping your business small is maybe a good idea. Number two is the elephant in the room. By having less people on your team, you have less expenses. That means you pocket more profit as a percentage. Obviously, the potential of a business that has 30, 40, 50, 100, a thousand employees, what they can produce, what they can deliver is going to be exponentially more than a company that has three employees. And therefore they can demand more revenue. They could demand more money from the marketplace. But in terms of profit margins, I know small businesses that make 1,000 to 2,000% in profit margin because their expenses are really contained. They're really kind of set in stone. They're a lot less because they're a smaller team. So as they increase revenue, as sales increase, that Percentage just starts to go higher and higher. This is especially a reality for any kind of product that you create that you can resell over and over without spending any more money. Like a content type business where you selling courses or books or training. You create that asset once and you can sell that over and over. The third reason why you would want to keep your business small is if you enjoy laser focus. As a small team, you have the ability just to focus on one thing, one outcome. Because in a way, that's all you really can do with the resources you have. Larger businesses, larger companies, they have several metrics, several goals, several things they want to hit. Whether it's revenue goals, whether it's customer satisfaction goals, whether it's how fast they grow the team, they have KPIs for every department. You get the point. There are a lot of different things to, you know, really make sure you have a grip on. With a smaller team, you really tend to just focus on one goal, you really focus on one thing. So it allows you to just have singular focus. That just means obviously you're getting less done, obviously because you have less people. But for some people, the focus is really reassuring, it's a little bit more calming. And even though they don't get so many things done, they can focus on one thing at a time. The fourth reason why you would want to have a small business is that the smaller your team, the faster you can pivot, you can change, you're more agile. Why do you think small companies that come about can compete with large companies and really just take over, at least for a bit of time before the big company can catch up? But you know, the company that's quite large, the large company, it takes time for them to make changes and to pivot and to react. There's so many cooks in the kitchen, there's so many managers, there's so many people have to be on board. There's so much communication that needs to be done. When you have hundreds of employees versus if you have a small team of three, four, five people, you all can get on one call and say, yep, let's decide, let's do it, let's move in this direction. So smaller teams, smaller businesses are, are a lot more agile. When something's not working, they can quickly shift gears and move to something that is. And for our fifth reason why you'd want to keep your business small, and this one's a big one, smaller businesses have less risk. The bigger you are, the more you have to lose, whether it's employees, if you ever need to lay off people? Whether it's revenue money that's not coming in anymore, whether it's reputation, your brand, you know, the bigger you are, the harder you fall, right? Smaller businesses have a lot less risk financially, but emotionally relationship wise with people they work with. And they can bounce back from a failure because they're not so big that whenever they make one bad move, they're all over the newspapers or all over social media. The smaller you are, the less the risk. Now obviously a lot of people say the less the risk, the less the reward. That's true. But there's always a sweet spot. There's always somewhere where you feel comfortable, where you might be quite popular or well known in your niche, but you're not a household name. This also applies to finances. When you have less expenses, it's a lot harder for you to fail because breaking even is so easy. So therefore again, you mitigate the risk. So small business is not a negative term. It's a choice. A lot of entrepreneurs choose to keep their businesses small and you may want to make that choice yourself.

Today, too many patients aren't getting the care they need. That's why UnitedHealth Group is innovating how healthcare is delivered, offering creative solutions that focus on patient outcomes, preventing disease before it starts, making care easier to get and less expensive. Reshaping care to help more people live healthier lives. Learn what UnitedHealth Group is doing to help people get the care they need@uhg.com mission.

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To wrap up today's lesson, I feel like I have a very good perspective on this topic because I run two businesses. I run the hundred dollar MBA which is a small business. A small team helps me run this business and grow it. But I also have a software company called Webinar Ninja which is a larger business with a much larger team with more expenses, with more KPIs and goals and things to achieve in a bigger market. You know, I'm really trying to compete with some big players. And I'm not saying that having the ambitions to grow your business and no longer be small is a bad thing. And hey, I'm doing both. But what I am saying is that there are some undeniable advantages of keeping your business small. And if some of the things I mentioned today are kind of in line with the way you want to run a business, the way you perceive your life in entrepreneurship, remember, this is your life. You make the choices of how you want to run your business because your business is going to be a big part of your life and it's going to affect your personal life. If you're like, I don't want to be responsible of, you know, 20, 30, 40 people, that's going to keep me up at night. That's a problem. You've got to keep your business small, then. There's nothing wrong with knowing what you want and then going after it. It doesn't make you less of an entrepreneur. At the end of the day, the business that you build should cater to, should serve the life you want. Thank you so much for listening to the $100 NBA show. If you love it here, hit subscribe right now. Subscribe so you don't miss our next episode. As soon as it's released, you'll have instant access. It's absolutely free to subscribe on whatever app you use to listen to podcasts. Before I go, I want to leave you with this if you want to learn more about keeping your business small. Having a small business and what is the potential of having a small business? I recommend the book called Company of One by Paul Jarvis. Paul Jarvis is a friend of the show and friend of ours. His book A Company of One is a bestseller and really goes deep in this topic. Alright, that wraps up today's lesson. I'll see you tomorrow. Free ride Friday. Until then, take care.

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