Big Or Small, A Necessary Decision From Day 1

When it comes to business, there are two main categories: small businesses and big businesses. The dynamics of starting and running these two types of businesses are fundamentally different. It's crucial to grasp these distinctions before embarking on your entrepreneurial journey as many business owners overlook this aspect.

The focus for a small business is usually maximizing profits. This is not necessarily bad; however, it is often done at the expense of future growth/scaling possibilities. Many people tend to opt for small businesses because self-sustenance is generally the most popular motivation for venturing into business and small businesses seem to immediately deal with that.

Small businesses give a quick return though it is capped, as opposed to big businesses which typically involve greater operating costs as a key focus is expansion. We often find that big businesses even re-invest the would-be profit in continuous business expansion, typically to reach a milestone. It is important to note that the difference between these businesses isn't that big businesses re-invest profit and small businesses don't, but that big businesses can expand their operations and also maintain profits while small businesses usually cannot afford to expand and maintain profit (the reason for this would be clarified in my post on pricing).

Big businesses require significantly more physical, mental, and emotional investment than small businesses but can be more rewarding in the long run, personally, nationally and even globally. Small businesses, on the other hand, are generally easier to manage and would typically make you money faster. Make no mistake though, regardless of the size of the business ventured in, no business is easy. It's easier doesn't mean it is easy.

I believe all business owners should start with the intent of building big businesses as they are more valuable and sustainable than small businesses. What is however important is that you have clarity on the size of the business you are venturing into for whatever reasons you might have.