In business, big companies are looking to act smaller. As small to mid-sized companies, we have great advantages that we can exploit. Let’s call this the economies of lack of scale.

Here are ten reasons why smaller is better:

1.      We are more passionate. We are the actual owners, and often founders, of our companies. Our company is our baby. We care more. We feel the bumps more. We aren’t just in it for the perquisites, annual bonus, and stock options. Our business is part of who we are, and our energy can get us through tough times. While employees and executives of big companies bolt or point fingers at the first signs of trouble, we stay at it through thick and thin.

2.      We are more agile. A small to mid-sized business is like a Fighter Jet while a large business is like the Space Shuttle. It is much easier for us to maneuver. While a large business might take months of committee meetings to figure out if the dollar savings on a coupon should go on the upper left or lower right, we can launch a whole new product in that same time.

3.      We can flex up and down to get the resources we need. Most small businesses know how to hire contractors, sometimes from all over the world. We don’t need to figure out how to manage a full-time staff. When we have work, we can source it out to a whole pool of freelancers. We are much more flexible.

4.      We have fewer politics. Every organization that has people has politics. However, the smaller the organization, the more that the owners and employees can focus on serving the customer – instead of reinforcing their turf and status.

5.      We have more control. In a small company, people can step in to make things happen. There is no where to hide, and we can’t point fingers. We can see the entire process, and fix things that need fixing – often before a larger company even recognizes a problem.

6.      We are closer to the customer. In our world, often the business owner one of the people who serves the customer. In bigger companies, executives are so far removed from the customer that they make a big deal about listening in on customer service calls once a quarter! We control the customer’s experience, we can ask for customer input, and we can develop a special, personalized relationship with our best customers. You can’t beat that for building loyalty.

7.      We can use the same technology the “big boys” use. The Internet makes available to us all sorts of software, market research, and management tools, the kinds of tools that used to only be available to major corporations. Now we have the same analytical tools as Fortune 500 companies, except that we can react much more quickly to threats and opportunities.

8.      We can profit from “long tails.” While big companies don’t care about smaller opportunities – the “long tails” that are not best sellers or household names – smaller firms can make big money focusing on niche and even micro markets. In my own case, I make lots of money focusing on things like kettle bell training instruction, boxing instruction, and agility training for fitness professionals. These are topics that might not make enough money for the big names out there, but that are great money makers for a small-time entrepreneur like me.

9.      We have fewer sacred cows. Small and mid-sized business owners can eliminate anything from their business at any time based on profit and customer demand. Big companies should be able to, but often cannot. Just look at the major automobile manufacturers and their historic inability to adapt.

10.   We can look forward instead of backwards. While major corporations tend to focus more on past glory, we have the vision and creativity to consider what is coming around the corner. We look forwards and we remain creative -- and that is why big companies often have to grow by acquiring us.

Let’s celebrate and build on these great advantages!