Should I Start My Business On A Small Or Large Scale?
In business, your capital determines whether you are to operate a small or large scale business. Money is the determinant on which path of business scale to toll.
Small scale business is lovely when you have a little capital or when you are fresh in the market. At this level, you will learn the rudiment of the business. And as time goes on, you will grow the business depending on your long time growth plan based on the experience you have gathered.
In this article, I will discuss – my fuss with small scale business and why I prefer a large scale if there is capital.
My fuss with a small scale business
It is generally known that a small scale business only dominates in an area where there is nobody selling on a large scale.
In as much as I love small scale business; in the sense that it gives one privilege to experiment and to understand the business outlook, I still have some fuss with it.
My fuss with this line of business is that its growth level is limited. What I mean is that the business can only thrive as long as someone selling on a wholesale hasn’t appeared.
Read: 5 proven route to business failure
I am a supporter of this saying “the young shall grow.” However, the number of small scale businesses that metamorphosis into large scale is low.
Often, I do advice people that want to toll this line to look for areas where there is little or no competition to your type of business and to make sure that they give people value for their money. Then one can be a guarantee of maximum profit and on a path to grow in the business.
Let me give you an instance to buttress my submission. If you have a small scale business that has been operating for some time in a particular area, then someone appears in that same area with the same business, but on a large scale, one thing is sure, the person’s goods will be cheaper, and there will be varieties in the shop. This will make most of your customers to shift to the new place, and your business will face a threat by the new sheriff in town.
Competition is healthy in business only if you are on the same scale, but once someone with a bigger scale appears, the smaller scale will give way.
Why I prefer a large scale (Advantages of a large scale business)
- High tendency to dominating the market
- Return on investment (ROI) is high
- Easy to maximize profit because you buy on a large scale
- You enjoy high patronage by customers
- Spontaneous growth is guaranteed if well managed
Finally, this article isn’t written to discourage my reader from starting a business on a small scale, but to make them have a plan to metamorphosis their business to a large scale. Also as I have said earlier, if you are to start small, make sure you locate your business where your goods have high demand but low competition.
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