Many small business owners go to great lengths, to pretend that their business is actually a lot bigger than it really is. When I ask people why they do this, they usually tell me it’s because they think prospective clients won’t use them, if they know how small they are.
In my experience, it’s never a great idea to start any relationship, including a commercial one, on a foundation of lies. If Bob’s marketing contains addresses for offices that exist only in his mind and fake telephone numbers that are all diverted to his one real line, he’s clearly being less than honest. When his clients find out he’s lying about the size of his business, he will have lost their trust. This is perhaps one of the worst possible business scenarios.
Ironically, the whole idea of lying about the size or capacity of a business is completely erroneous, from a marketing perspective!
There’s zero point in pretending you are big enough to handle a project or client, that is clearly way beyond your means. Even if you do manage to fool them into thinking you have the resources to handle their needs, they will quickly realise you don’t, once they start working with you.
Successful marketing (and business development), is about working with clients that suit your business model, not fooling those who are unsuitable into joining, and then leaving you.
Some of the smallest brands are the most respected
The small business mindset, which says; “if they know how small my business is, I will win fewer clients”, is based on an incorrect assumption. It assumes that quality is linked to how large a business is, when the opposite is more often true. In reality, some of the most respected brands are smaller scale and some of the least respected brands are high street chains.
For example, until last year, Twitter employed fewer than 30 full-time people, yet it was massively successful. Twitter attracted tens of millions of dollars and has been valued at a BILLION dollars. You can join me on Twitter here.
The most famous shop in the UK and maybe one of the most famous in the world, has just one UK outlet. I’m talking about Harrods.
Conversely, some of the lowest class and most unhealthy food in your local town, is almost certainly dished up by a national or international burger chain – but the best food is almost certainly from a great little independent restaurant you know.
Small businesses should play to their strengths
The most successful small businesses play to their strengths; rather than lie about being something they are not. They focus on quality, not quantity. They develop great, long-term relationships with their clients and customers, because in most cases they know their clients and customers extremely well.
Small businesses also benefit from being able to make a decision and take action immediately, whereas large companies typically move much slower. So long as they play to their strengths, small businesses can achieve amazing results and be extremely profitable too.
I would be interested to know what your thoughts are on small businesses, who create a bogus front end to make their business look bigger.
Photo: Nevolution
Hi Jim,
No, I don’t think its right for someone to lie about their business. I can assure you, if I found a provider and discovered they were not what they said they were, I would dump them in a heartbeat.
What else might these guys be lying about? Thats what I would be thinking.
Thanks for asking such a great question Jim
Interesting article Jim. As someone whose business has been through several iterations of size and shape, I recognise the temptation to “exaggerate” about your resources.
What I find interesting at the moment though is that my company is now a “networked” company – I can’t remember whether I picked up that phrase somewhere or dreamt it up, but I am the sole employee but work regularly with 3 or 4 key individuals, a couple of whom are pretty much full time, who are freelancers/subcontractors. I find no shame whatsoever in telling prospective clients this – in fact in the web design industry, I would argue it has gone beyond acceptable, and is almost becoming the norm. Most people, even if they are employed full time by one company, will have side projects and other associations. Sure, you get some clients who are reassured by size, but I find them much less frequently than say 5 years ago.
Cheers, Jon
Good question, Jim.
I think this is a real challenge for small businesses, especially those who may sometimes market to big corporates. Unfortunately big corporates sometimes have purchasing rules that favour bigger suppliers, so I can understand the temptation to appear bigger than you are. However, I think small companies need to ask themselves whether who they are and what they stand for will be aligned with such a big organisation or not. It’s often not, so why set yourself up to fail?
Christine Livingston´s last blog ..Doing Your Real Work
Interesting point there, Christine.
Of course, even if a smaller company does manage to convince a big corporate that they are bigger – they would potentially be leaving themselves extremely exposed.
For example, by trying to cope with the significant workflow created, would the smaller company be able to look after existing clients?
Equally, many smaller companies rely too heavily on one, major contract for too much of their turnover – again, leaving them very exposed if they lose the account.
Thanks for the ideas Christine and for widening the conversation!!
Amen! I laugh sometimes when I see a website from what is clearly a one person business when it talks about “we”. I think it looks ridiculous.
As you noted, small businesses should play to their strengths and leverage their inherent advantages.
Christine is right about the wisdom of asking oneself whether hooking up with a big company is wise. The money is tempting but it often ends up feeling like making a deal with the devil.
I love the “we” thing too, Mike!
This is often a difficult question for small businesses when they are new. I have found that they eventually discover that clients worth having will value the extra care, attention and effort that small businesses provide.
You’re right to point out that some of the UK’s best products and services are provided by small companies. It’s an easy mistake to make when you’re new though, as little recognition is paid to the valuable contribution that the small enterprise makes to our economy.
It’s about playing to your strengths, Ash. Small companies can compete very well in some areas, it’s a matter of applying the focus correctly.
Another great post Jim, so I thought it time that I commented.
I think the type of service a company delivers can have an impact on how they present themselves. I sell myself entirely on the grounds of the barely occupied space between my ears where my brain should be, and although I started out with a business name, I soon found that people were more interested in my background and knowledge than the ‘company’ so I went to using my name and it’s proved far more effective.
It has reduced the size of projects I will go for, but in return, the work I now have is more interesting because clients are prepared to listen to the direct experience of an individual rather than the interpretations of a third-party account handler or such like.
Thanks for giving some first hand experience there, Robert.
Good to see you on the blog and thanks for your comment sir!
No problem.
A related question about social media for you, Jim.
Would you consider being ‘small’ as an advantage in terms of making good use of various social media platforms? Does being small makeg it easier to develop a (presumably) natural personality that will stand out, rather than developing a manufactured brand message and expecting employees to act a role?
robert hempsall – information designer´s last blog ..Plain Language in Plain English book design
Very good question, Robert.
Some large companies seem to “get” social media – whilst others are clueless. Similarly, many small businesses struggle to get bankable results from SM, whilst some do.
It’s certainly a lot easier to be relevant when you are smaller, because the person tweeting / updating the accounts will know a lot more about what’s happening at all levels of the company.
I’d like to know if anyone else has any ideas on this?
I don’t think being small automatically gives an advantage. Like always, the small company has to seize the opportunity.
What social media does do is level the field such that a smart small company can run circles around a larger competitor, at least until the large company “wakes up”.
When the larger company does wake up, the small company still has the relationship and mindshare gained from its social media work, great content, and presumably, services rendered.
What the larger company can do is throw people at the problem and if someone visionary is in charge, the right team (3 or 4) of skilled and knowledgeable people can wear down a small business owner fast.
If the team isn’t good, the small company cleans up. The good news for small businesses is the most (from what I see) larger businesses are somewhere between clueless and not too good at social media.
As for personality, few large companies are willing to turn their employees loose so the personality feels as sanitized as their marketing messages.
Smart small companies are excellent marketers, and they don’t hide their personality. Often, their “right people” are drawn to the personality, which gives the small company yet another advantage.
Hi Jim,
It’s been my experience that – Big Results – is ALL that matters… Companies, big or small, will pay handsomely to get solid positive results – period. The ability to deliver on your promises will determine how high, how far you go in business.
Solid business advice – don’t lie; they will always be found out.
Mark Harai´s last blog ..10 Ingredients for Guaranteed Business Success
For me the deception would make the illusion a non-starter, Mark.
Like you say, the ability to deliver results is what people really want. If you can do that for a company, large or small, let them know and explain why YOU are the only show in town.
I agree, but sometimes it is just about perception and a name.
I had to laugh when a family member wanted to open a new business account at a local branch of a typical UK national bank, only to be told he couldn’t open one with a business name including the word “petroleum” because this would imply he was a large company hahahaha
It’s so preposterous I almost fell off my chair in amusement … Nothing like trading for 30 years and then being told you cant use that name by some idiotic bank manager.
Petroleum is a field of activity not a company size.
Vincent Roman´s last blog ..Once Upon a Time in Papunya
Thanks for sharing that, Vincent.
Sounds point-blank nuts to me. Also, not the first time a bank employee has displayed a shocking lack of commercial understanding.
…or the last!
While I agree a small business should not lie or mis-represent themselves to the public, you sometime don’t want to draw too much attention to something that can be seen as a negative.
Being a one man show or having a small staff has its advantages, but it also has some drawbacks and weak points. It may be best to not mention those weak points, or at least not highlight them for all to see. Surely if asked point blank you should be honest and up-front, but I’ve seen some companies go too far when trying to be “honest” and actually hurt their business by actually drawing attention to their weaknesses.
It’s a fine line, and this is where good marketing plays a crucial role… Being honest while focusing on your company’s strengths and minimizing your weaknesses.
Rob Mangiafico´s last blog ..LexiConn Summer Specials and Offers
I think it all depends on what you think of as a weakness, Rob.
If you are targeting the wrong kind of prospective client, and many small businesses do, it’s easy to have a very bad match.
Take your point on this, however, do you think there’s a difference when you are a ‘one man band’? Don’t you think it’s worthwhile for example to have a telephone answering service so it’s not always you answering the phone? And also to make sure you don’t miss any important calls. Does this make you appear larger than you are?
Hi David.
I think it’s 2 different things.
There’s a big difference between using an answering service, in order to be as effective as possible – and offering half a dozen fake telephone numbers / addresses, just to look bigger than you are.
One’s designed to help, the other is designed to create a false impression.
I couldn’t agree more. There is a difference in being professional and being a poser. My pet hate is when people have an email attached to a particular site or aspect of their business, you write to them, don’t get a response, and then they say, “Oh, I don’t really use that email much”. The last person who did this is an (acknowledged) expert in bid management. Hmm.
Great article. I’ve always thought of “small business” status as something of a selling point. People like dealing with small businesses, because they know that their business is valued more, and small businesses are more likely to “go the extra mile” to please clients. I really can’t see any benefit in pretending to be something I’m not.
Marek´s last blog ..Five Things to Do When The Fail Whale Strikes
You can certainly use it as a selling point, Marek – I do!
My client’s love the fact that they work with me, direct.
Jim,
Great article and I don’t disagree with anything you’ve said. However, when prospective buyers are looking for products or services, I do think it’s important that a small company appear to be solid and reliable — substantive anyway. Trying to communicate this on Web sites and in marketing materials could often be confused with wanting to appear “big.” Looking like a solid and reliable company can be achieved without telling lies through the use of contemporary, professional design and copy.
Susan
Susan Fantle´s last blog ..B2B Marketing Tip of the Day- Stop asking questions
Hi Susan. I think you answer your question really well, with your closing sentence.
There’s a big difference between looking capable and presenting a false front.
Jim, you make excellent points about the fact that the practice is founded on a misconception, as well as the complications of over-selling capacity.
Well said!
Ed Han´s last blog ..Why Personal Branding Matters to Job Seekers
Hi Ed. Over-selling is extremely common among small and medium-sized businesses.
Usually, anything that’s over sold will result in a poor quality transaction for the buyer and seller alike.
Jim
Great subject, and loving the interaction here.
I like what you say: as a small business, play to your strengths, rather than trying to be what you’re not.
For many years I tried to make myself and my businesses look bigger, as many people still do today. The reverse has now happened for me – I rarely promote what I do do and don’t celebrate my wins so much.
The trouble with appearing bigger, in my opinion, is when someone calls you on it – when get work that you can’t handle.
If someone ever does that to me now – makes themselves look bigger and then does a poor job for me because of it – I will feel like they’ve lied to me.
Good discussion – will follow the comments!
Scott
I couldn’t agree more with this article Jim. I run my own graphic design business and I don’t pretend to be bigger than what I am, I celebrate my oneness and sell the benefits of it, being: acccountable, flexible, affordable, transparent and honest, which is what a lot of larger studios/agencies are lacking when you look closer. And it’s definitely quality over quantity. Thank you for backing up what I’ve been battling over for some time now.
For years I was intimidated by people working in the same field who had bigger reputations and organisations.
But as I have become clearer about what differentiates me from them, this has become much less of a worry.
As the focus of my proposition got tighter (to the point where I was beginning to be afraid it would disappear altogether) I found it easier to communicate with my target audience and its perceived value and relevance seemed to go up.
The task now is to reflect the essence of these conversations in my website and in other communications. But I guess that is what marketing is about.
It’s not about bigging something up; it’s about finding out where the real value lies and then communicating it.
Malcolm Sleath´s last blog ..Web presence for professionals – a video primer
I am wondering how much of this is posturing and when a projection of desired goals becomes a lie. The old “fake it till you make it” technique.
Terry Tiessen´s last blog ..How to create BIG duplication…MLM Leadership Training