In this modern era of startup culture, an increasing number of small businesses have opened shop, challenging the reign of large, multinational corporations that have been ruling the markets for decades. However, with such a large number of smaller businesses shooting up, the question of survival among these small businesses is impending. How will these businesses compete with organizations that possess large capital, highly skilled labor, automated machines and a constant influx of market returns?
Why Do Small Businesses need assistance?
Any business having 500 or lesser employees can be referred to as a Small Business. The reality, however, is that most of these small businesses barely have 20 or so employees and tend to be self-funded, which gives them little or no room for error.
Most large corporations have the backing of investors and experienced management at their disposal, and hence are able to sustain themselves without taking much risk or accumulating losses. A small business is not so privileged, as most of them are self-funded with labor that is either skilled and underpaid or marginally skilled.
This comes as a huge disadvantage as small businesses lacks the funding, the experience and the vast staff at the disposal of large corporations.
How do these Small businesses go about competing with the Goliath’s of business with their limited capital? Banks are weary of providing long term funds to smaller corporations, due to the proximity of failure of such businesses.
How can a small business improve its growth and expansion?
One answer for these small organizations is The Business Backer, an organization that funds and sources small enterprises with the capital required to sustain and grow.
With their vast experience and knowledge of the market, they are able to provide a minimum risk environment to the small business who in turn can hire skilled labor, as well as acquire machinery and tools required to grow their businesses.
Further, minor setbacks such as fluctuations in the economy, market demand and being in tune with the frequently revised Government regulations such as Quality Control, Best Business Practices etc., can be taken care of with ease.
The additional resources can also be allocated towards branding, sales and marketing strategies as well as bringing in new customers while also focusing on customer retention.
In addition to this, the small businesses also have the elasticity to concentrate on Research and Development which are key areas of concern. Most large corporations are a cut above the small and medium enterprises thanks to their huge investment in Research and Development. R&D will bring in innovation as well as help the business improve the quality of the product. Besides this cost, effective methods of production can be deduced, considerably cutting losses and boosting profits which is the main focus of any business.
Supply too is another area that a hugely benefit, as the company can enjoy an uninterrupted supply of raw materials without having to compromise because of cash constraints and losing orders from the customers. This can improve customer satisfaction rates too.
Equipped with business statistics, organizations like The Business Backer are not just funding these small corporations, but also providing them with the plethora of experience to improve profitability, productivity and achieve insights in the industry.