ANTenna Blog -- Business & E-Business
6 Lessons To Take From Big Business
Posted by Jennifer Moline Thursday, Nov 13, 2008, 06:42 PM ET
Small and midsize companies don't run like megacorporations -- and usually, the smaller businesses want to keep it like that. But often, big business got that way through shrewd practices and an ability to cut costs. Small -- yet growing -- companies could learn a thing or two.
Sure, it's easy to say huge companies are evil, but that doesn't mean the smaller companies don't crave financial success, too. Here are six smart tips practiced by large companies -- along with one those same companies should learn to adopt for themselves.
1. Conduct market research. You've probably seen the name Survey Monkey before. But did you know that you can use its software to conduct your own research for free? This can lead to a redefining of your company's practices and maybe finding a way to cut costs.
2. Include IT in management decisions. Your IT staff isn't there to just make sure your phones and computers are running -- they can also aid you in decisions about expansion and what your capabilities are, such as how long it would take to get a new office up and running.
3. Be tough. "It's said that Microsoft was built on innovation and coding, but really it was outlawyering IBM," said Barbara Darrow, a veteran Microsoft observer who covered the company for years. Just because your smaller business may not have a team of in-house counsel doesn't mean you don't know a smart lawyer or two. And in a broader sense, just because you don't have a team to back you up doesn't mean your ideas can be dismissed -- stand up for what you believe in.
4. Use a VPN. While corporations can spend a ton each year on VPN products, smaller companies have more low-cost options.
5. If you're going to outsource, do it wisely. Outsourcing isn't for every company. It can be as simple as outsourcing your IT staff to a local company or as major as outsourcing your call center to another country. Just be sure to look into regulations -- both foreign and domestic -- tax issues, and language barriers.
6. Look to others for advice. Even if you're a small-business owner, develop a board of directors, a circle of advisers -- basically, a group of like-minded people with whom to bounce around ideas.
Finally, one way big business can learn from the smaller companies is to be sure their sites are ready for the rush of shoppers this holiday season -- a smaller company shouldn't promise more than it can deliver. A couple of years ago, Wal-Mart, Amazon.com, and BestBuy.com experienced system outages due to a surge in traffic. But by regulating how much and what type of content is on your Web site, you can be confident page delivery won't slow down.
You may never want to see your business grow to 10,000 employees, but maybe you want to gain another 50, 500, or even 1,000. Borrowing a few plays from the behemoths' playbooks can be a great strategy to reach your goal but at the same retain your identity.
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