In the past we thought in terms of entry strategy and visas. Today we need to think in terms of impact – the impact a business can make for Jesus’ glory on employees, customers, the community, and the country. When it comes to impact, big is better.
Large businesses have certain inherent advantages over smaller companies. They are usually more established and have greater amounts of funds and resources. Larger companies also have a more established customer base. Hence, they can enjoy more repeat business, which produces higher sales and profits. Recent investors in OPEN businesses have looked closely at the commitment of the B4Ter to scale the business before committing cash. There are also several other key advantages of owning a large business.
Stronger Brand Recognition
Larger companies often enjoy stronger brand recognition or awareness. Brand recognition pertains to the percentage of people aware of a company’s brand name and products. Most large companies begin small. They build their brand recognition through personal selling, advertising and public relations. An advantage of having stronger brand recognition is that customers will remember those companies first when making purchase decisions. Hence, companies with greater brand awareness generally sell more products in the marketplace and have more influence in the community.
Greater Human Resources
Bigger companies have larger numbers of employees or human resources. This allows them to pool their resources to accomplish more work. For example, these firms will often group their organizations by various functions, including marketing, finance, engineering and information technology. Vice presidents will oversee directors, managers and analysts. Larger companies, in turn, have greater amounts of talent within these separate departments. Work can then be done more efficiently and with greater amounts of expertise. In addition, discipling can be modeled and reproduced through these departmental networks.
Economy of Scale
Another advantage of having a larger company is economy of scale. Suppliers often provide price breaks for businesses, wholesalers and retailers that can buy products in higher quantities. Larger businesses have more financial resources to take advantage of these price breaks. On the flip side, they can set their prices lower than smaller companies and still earn comparable profit margins. In the same way, manufacturers have the wherewithal to produce larger quantities of products at lower unit costs. In addition to savings, the greater cash flow enables the business to give greater financial blessings to the community and greater benefits to its employees.
In writing your business plan. Think big. Think beyond. Envision ways The CEO could grow the business and lead it into a greater impactful business throughout your target city and to other peoples and regions.