Monday, December 29, 2014

A Small Business Stronger than a Large Business?

The larger the organism the less it is venerable to falling as prey. The larger the size of an organism the stronger it is and the better it is able to defend itself. However, the larger the organism the more resources it needs in order to survive. This aspect makes it more dependent on the available resources and thus more vulnerable from this side. Also predators in general tend to select the larger size of prey, thus making larger sized prey more sought after and thus more vulnerable to falling as prey.

In the world of business, similar general laws apply. Although the larger a business is the more presumably powerful it can be yet at the same time a large business requires much more resources to survive and becomes a target to many more attackers. In the business world, as int he animal world, it is not just about how big you are, nor how small you are, but it is more about being of the right size, the size that makes you the most fit within the ecosystem you are working in and the niche you having.

It all boils down to righsizing. A business that has grown beyond its most optimum size or that is facing lack of resources normally downsizes. Another business may at times try to expand and grow in size to become more fit. The two directions are present in the business world in order for a business to reach its most optimum size that makes it most fit. Businesses that would go in the wrong direction would experience weakness and become less fit as they become too small or too large compared to their optimum size.