Why should an entrepreneur start SMALL?

Life of any business is very important. Every entrepreneur when starts up from the scratch, must handle the entire process most efficiently than any other part of the life of his business. Here comes the point to handle “efficiently” in the start, so its better to start small initially. The following reasons support this argument:

1. Low cost:

Starting from low cost initially prevents us, if in case our business fails. The losses will not be much bigger. Starting from low cost means, we will require less resource allocation cost and it teaches/prepares the entrepreneur to work extraordinarily to gradually increase cost fir increased productivity.

1. More control over operations:

Cleary, small businesses are much easier to control compared to large businesses. Entrepreneurs who start up with a small enterprise do not require a large staff initially, rather a group of two or three is sufficient to control everything. In this way, the cost of production can be controlled initially, until the business grows ahead.

1. Prevention from abrupt growth collapse:

Usually, when the businesses start with a very large capital, it faces difficulties related to management, strategic frame work & market targeting/customer capturing in the long-run. The reason is that, they get busy fighting with the problems arising internally.

1. Easy accumulation of resources:

For small businesses, it is easy to accumulate the resources than that of large start-ups. The reason is that, the resources for small businesses are required in a small amount and thus the entrepreneurs can easily accumulate the resources in a very short span of time. In contrast, the big businesses must do a lot of research about suppliers of resources which can provide them a hand full of required resources.

1. Funding access:

Large businesses get funds quickly, but in the long run. Initially, for the startup, small businesses get quick funding as they require a small amount of money & small installments, that lenders do not fear of default just like the stake of large start-ups.

1. Regulatory support:

SMEs are supported by the government at a large scale. The reason is the un-employment. Through small start-ups, most of the un-employed people earn their livelihood, & thus contribute towards the GDP & national well-being.

Conclusively, starting up from small venture is a good decision, as it gives a path of gradual growth which remains sustained for years due to its minimal growth.

Thank You:)