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6 Advantages Startups Have Over Large Corporations

You're on the daily grind. A part of you wishes your startup business would grow faster because you really want to get to the corporate status. Starting a business is entering an arena of competition and doubt.

I'm here to tell you that being a corporation doesn't always mean safer or better. Startups have advantages that corporations do not. This can make a big difference in specific business categories such as tech or marketing.

It's critical to examine the advantages and disadvantages of owning a business before deciding whether it's the best decision for you. While entrepreneurship may be a financially and personally gratifying career option for many, it comes with risks and possible negatives that may make it unsuitable for certain prospective entrepreneurs. In the end, the choice to establish a business is entirely up to you and your own tastes.

If you're worried, don't be. The business has its risks. Nevertheless, if you're determined enough, success is right around the corner.

Here are 6 advantages small businesses have over large corporations.

Let's Begin!

Team Chemistry

Even if you are a one-person team right now, you got the team chemistry. Small teams make big dreams happen. Why? You understand that time is important. Not to mention, close niche bonds create a quick and efficient service.

In a startup, you have little option but to form bonds with your coworkers. You may have three individuals or three hundred, but you'll be working so closely together on something that matters to you all that your working relationships will have natural chemistry.

When you have too many egos on the team, it can cause friction. You'd be surprised how much money large corporations spend on human resources and crisis management.

Chemistry is more important than you may believe. It implies that your employees will be more productive and pleased with their positions, resulting in more consistent output and shorter turnaround times for you.

Agility and Flexiblity

One of the things I disliked the most about working for a larger company was how slow it was to make a decision. It could take weeks before approving a new product or service.

While you are too busy making a decision, a startup or small business can change without a problem.

You're still in the building process. For the first several years, startups are immature and unformed. You may have a great business plan and an operational strategy in place, but those frameworks aren't binding.

To keep their board of directors, investors, and customer base satisfied, large firms are required to stick to the same business models. You can do whatever you want as a startup. This is an advantage.

When anything disturbs the industry, such as a new technology discovery or an even newer rival, this adaptability comes in useful. As their giant gears begin to revolve, big firms must take the impact and respond carefully. As a startup, go for it and rebuild everything from the ground up, if necessary.

Fewer Politics

As your business grows, so does workplace politics. Your startup or small business won't have this problem. This is because you have employees who may wear multiple hats. A corporation has more politics and needs to maintain a level of performance.

Workplace politics can affect performance. Everyone comes to the business with their own goals, egos, aspirations, and agendas. In addition, their vision may not align with your ideas. If a corporation can't keep office politics to a minimum, it can destroy a business.

Office politics affect businesses negatively:

  • Office politics can divide employees

  • Can cause decreased employee performance and productivity

  • Lower company morale

  • High employee turnover

  • A damaged reputation.

Your company's performance is primarily reliant on the efforts of your employees, it's critical to maintain employee happiness across the board.

Although it may be simple for your business's top executives to make judgments that favor themselves, it is your job as a leader to keep workplace politics to a minimum and guarantee that every decision helps the firm as a whole.

Regardless, you're probably feeling a little better right now that you're not that big yet. You'd be surprised how much profit and revenue large corporations miss out on because of these problems.

Competitive Pricing

When you are on a budget, you'll find creative ways to keep your pricing at a low cost. Normally, cost includes employees, manufacturing, supplies, and other details.

Since startups use fewer resources, prices can be lowered. You can find an edge with your target audience, especially with a lower price.

However, it's not all black and white. Pricing is a difficult topic to discuss in general. When it comes to price, each industry must take into account distinct elements.

Larger enterprises, for example, have a pricing edge in food product creation since they have access to more equipment, can run larger runs, and save money on products per piece. When it comes to price, though, startups have the upper hand in most industries.

Startups have fewer expenses. They may be priced more aggressively than products and services produced by a multi-level, large business. You'll also have additional price options, as well as the ability to negotiate, allowing you to get more clients.


This is one of the most important reasons why startups have an advantage. Starting a brand is an awesome way to connect with your audiences.

Normally, startups have fewer employees, they tend to have a stronger, more approachable brand identity. They understand the mission at hand. After a company scales and grows, the mission may get lost in translation.

You'll find that employees tend to be happier too.

Employees who are paid less and have more flexibility actively want to be a part of the organization, making them happier and more enjoyable to work with. Since you're a startup, certain clients will naturally draw toward you. You're unique and have something that other companies don't.

In this day in age, being unique is a compliment. It is really popular.

Genuine Customer Service

Genuine customer service comes from the heart. I find that most startups and small businesses excel with this. You get the one-on-one attention that most people crave. You can't always do this at a larger corporation. Their traffic is higher. This means that customers will fall through the cracks.

Great customer service goes beyond transactional, programmed, and mechanical responses. Great customer service appears to come effortlessly, with the service expert caring for the served truly, readily, and tastefully. In a nutshell, it's genuine.

In the beginning, you may not have the budget for automated software or virtual customer service representatives. This is where you have the advantage. While it does help that customers receive instant gratification, customers like to feel bonded to their businesses especially if it's a service they need help with.

When you start out, most startups and small businesses care about making their customers happy. You are worried that customers won't like your product. You're unsure of yourself. This uncertainty can be a benefit.

The Bottom Line

I hope this article was able to relieve your stress. You might think that you are outmatched and outgunned, but that isn't the reality. Business is not always about being bigger. It's really about using your resources effectively and understanding your target audiences.

During the initial several years of your business, make the most of these assets. Your larger competitors may have a leg up on you in terms of resources and clout, but your nimbleness and underdog status will make up for it.

You'll be in a much better position to thrive in the long run if you can employ techniques that accentuate these inherent starting advantages.



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