These days, everyone is rushing to grow a business. Well, that is how we describe it. The truth is that many businesses are opting to stay small. Some people start businesses simply to create a job for themselves. For one reason or another, they’ve decided not to join or return to the traditional workforce and want to provide an source of income for themselves so they can live on their own terms. But as time goes on, the pressure to build a business into something bigger lingers. Why should you stay small when it seems like everyone around you is growing into something bigger? We’ve put together a list of five benefits of keeping your business small.
You Don’t Have to Give Up Equity in Your Company
One of the biggest reasons people avoid growing a business is that they worry about losing ownership. When you grow, you need money. And when you need money, you usually have to go looking for that money somewhere. Asking for money usually means giving up a piece of your operation. It’s a lot to give up if you’ve been sinking your blood, sweat, and tears into your business, it’s a hard pill to swallow that you have to give up some of the rights. Staying small means you can grow your business over time, on your own terms.
You Don’t Have to Hire People
If you are a solopreneur, you get to decide how you spend your day. When you bring on employees, everything changes. Suddenly, your free time is filled with filing payroll taxes, sending pay stubs, and dealing with employee problems. If you aren’t keen on being a manager and are more comfortable doing your own thing, you might want to stay small. Plus, you can always hire freelancers or virtual assistants to help with the logistical stuff. You don’t need to manage other business owners. They can do that themselves.
You Don’t Have to Get More Space
Growth usually requires more space. If you are renting a co-working space that you can come and go from as you please, you might find it financially difficult to take on the bill for a larger space. If you keep your business small, you can work from anywhere. Even if you have one or two employees, they can work from home, depending on your industry of course. But keeping your business small means you can work where you want.
You Save Money
Whether paying employee benefits, higher rent, or more city taxes, staying small helps reduce these costs tremendously. When your business makes a lot of money, you have to pay a lot of taxes. Depending on where you live, you can pay as much as 30% corporate income tax. If you stay small, you can get away with operating a sole proprietorship and pay simple private income tax. You’ll save thousands of dollars, time, and energy when you keep your business small.
You Can Shift Gears Easily
When you run a small business, you can change your mind on a dime. Rather than have to consult with stakeholders, investors, and employees or managers in your business, you remain in charge and can call the shots. If you decide you want to get out of the organic dog food industry and want to jump into technology development – you get to do that without worrying about the livelihood of others. As a small business owner, you have to follow your dreams. Of course, those dreams might change at any time and staying small gives you the flexibility you need to follow those dreams as they evolve over time.
Regardless of the industry with which you run a business, you can be sure that staying small is not for everyone. If you decide that you are going to stay small, you also have the opportunity to change your mind and grow it as big as you want at any time. The benefits of staying small don’t tend to change over time, but your business certainly can.