Small is profitable

At James Todd & Co we can provide businesses in the Chichester area with assistance and advice on a wide range of business issues. Here are some thoughts on how small businesses can gain a competitive advantage...

In a world of large, multinational corporations, it might sometimes seem that smaller businesses cannot effectively compete. But there are also advantages to being small, and good planning and management can help you make the most of your strengths.

Use your advantage in the labour market

In today's world of mergers, downsizing, and outsourcing, working for large companies is losing its appeal for many employees. Not only is job security becoming a thing of the past, job satisfaction is decreasing while workplace stress is increasing.

Conversely, working for small and medium-sized firms is becoming increasingly attractive. Research suggests that employees of SMEs are much more satisfied with their work-life balance, and they find that their roles are more varied and personal than in a large company. With good planning you can use this advantage in the labour market to attract higher calibre employees - and to retain those you already have.

Look to your profits, not your earnings

Smaller businesses also have a key advantage over large companies when it comes to a long-term commitment to innovation.

Often the investment decisions of public companies are driven by the short-term contingencies of the stock market and pressures from major shareholders, which can narrow their options as far as investing in innovation is concerned. SMEs, by contrast, are largely free from these restraints. They can focus on long-term profitability rather than short-term earnings.

Use nimble strategies to stay one step ahead

Conventional wisdom says that the key to success is to increase your share of the market, which implies that businesses that command only a small market share are at a disadvantage.

But this need not be the case. Generally, the larger the share of the market a company commands, the more remote it becomes from its customers. In smaller firms, by contrast, the managers tend to remain closer to their customers. This enables them to read changes in the marketplace sooner and more accurately, and to develop responses more quickly than larger companies are able to.

Small businesses have numerous advantages in the marketplace, but they need to develop the strategies for making the most of them. We can help you improve the dynamics and the profitability of your business.

If you are in the Chichester area and are looking for support and help from experienced accountants and business advisers, contact James Todd & Co.

Have we convinced you yet?

Please feel free to get in touch via phone, email or our quick contact form.

We offer initial free consultations – simply contact us to find out more.


ICAEW Chartered Accountants logo Sage logo chichester chamber of commerce and industry logo
Copyright

© 2018 James Todd & Co. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact us

Please call:
01243 776938

Address
James Todd & Co, 1/2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester PO19 1BJ

James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.