Re: BUSINESS: When Small Businesses Rule the World

Max M (
Fri, 10 Jan 1997 12:48:52 +0100

> From: David Musick
> The era of Huge Organizations is nearly over. I don't see how they can
> with all the little guys scurrying around, snatching up business
> all over the place, starving the Big Boys. Because they are more
> small companies will have lower prices than huge ones, and they will
> more business

I don't quite agree here. I actually think that smaller corporations are a
bit more inefficient. Let's just say that a typical company in advertising
charges about $150 per hour for work done. That might sound like a lot.
Compared to a one man corp. But these $150 dollars an hour is for actual
production work. What's not included here is saleswork, administration,
Rooms, transportation, equipment, and off course a profit for the owner
(for taking the financial risk) etc. Sales and administration has to be
done by a one man corp too and i don't know any one man corp where the
owner is good at that. But it takes time away from production.
Also you can argue that a one man corp don't have to make money for the
owner. But waht about pensions then and what about loans from the bank etc.
Any technology that will make it easier for a one man corp to do sale and
administration will also make it easier for larger corporation.

Also price isn't the the most important factor when it comes to selecting
who you hire.
Some employees gets a higher salary because they are better at their work,
and the same goes for companies. Not to mention trust thru redundancy.
Would you put your company's future in the hand of a one man corp where the
owner can loose his ability to work form day to day?

It is simply not possible to work below a certain hourly price unless you
seriously wants to lower your standard of living. Therefore i don't think
that smaller corporations will be a lot more efficient than larger one.

MAX M Rasmussen
New Media Director



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