Why Small Businesses Outperform Their Big Brothers

For decades small businesses have been disadvantaged  by the symbiotic, parasitic relationship between politicians, big business and big banks. Money talks and can buy the favor politicians. Swimming upstream against a constant deluge of disadvantages, small businesses have had to think outside of the box, constantly reinvent themselves, and maximize on their limited resources.

Labor, materials, distribution, regulation and taxes are the cost components of doing business. There is not much that can be done about regulations and taxes because small businesses don’t have the clout. The mis-named Small Business Administration is of no help. When the SBA was created in 1953 the big business lobby got their political friends to define small business as any business with under 500 employees, which is 99.94% of all businesses in America (only 17,000 of 28 million are larger than 500 employees). So even with the SBA, true small businesses are on the outside looking in.

Material costs are predicated on volume and small businesses do not have the buying power of their big brothers. Using third-party procurement companies, or buying into a franchise are of some relief but not for all businesses.

Distribution and labor are the two components that small businesses have an edge. For large businesses, getting the product out to market can be 50% or more of the cost of the product. The birth of the internet has given small businesses the ability to go to market at minimal costs. Today there is somewhat less need for store fronts, outside salesmen, or commodity brokers. A good website and a qualified staff is mostly all that is required. And there in lies the secret as to why small businesses outperform their big brothers…a qualified engaged staff.

Brick and mortar companies have been slow in engaging internet commerce. Understandably because they are staffed with specialists and a lot of them. If someone in the organization comes up with a cutting edge idea, unless it is within their area of discipline, there is little chance for it to get to and accepted by  the proper channels. A small business on the other hand with less than 50 employees, the lines of demarcation are not so defined. With a smaller group, there is a stronger interdependence and communications to incubate innovation.

EXAIR is a small business with an engaged staff. Whether you are in machining or marketing, everyone is well aware of the tempo of the business. We fully embrace the internet with a comprehensive website with online buying and online chat with one of our engineers. You can find us on Facebook as well as Twitter. Those in search of a compressed air solution can easily find us and get an immediate answer.

Need help? Call and ask for one of our engineers 1-800-903-9247

Joe Panfalone
Application Engineer

Phone (513) 671-3322
Fax   (513) 671-3363
Web: www.exair.com
Twitter: www.twitter.com/exair_jp
Facebook: http://www.facebook.com/exair

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