Are non Fortune 500 Companies Important?
This may sound like a very weirdo question but I have specially got this point forward today so that you can expect the unexpected, still confused, well, you will get your minds clear as you read on. We are talking about the importance of not so fortune 500 companies that are not making any billion dollars today but tomorrow probably they may rake in good money. Talking about any companies today means you got to be talking about the biggest companies in the US, the fortune 500 – as they call it. These companies are not only just making billions of dollars per year but are raking in good sales each year with increase in the profitable revenue.
The not so fortunate companies are the small companies, they may sound un attractive because of their low revenues, say some of them might not be even earning a million dollar per year but in actual terms, these are the most attractive of all let gets into a brief discussion as to why you shouldn’t be following the fortune 500s!
- Big company, big talks but hell lots of time and money – the bigger the company, the bigger the managerial levels. If you are thinking your deal would be passed just meeting one official, it’s not the end. There may be even more official to talk to and you will never know the person you are meeting is going to take the decision.
- Apart from the costs of presentations, you will have to spend a lot of money if you are meeting the official outside office premises for wining and dining purposes. And if do get in to any deal with the company; the legal fees would be much higher than your expectations.
- Lots of people think, if they are in some way making a deal with a billion dollar company than they are going to make good money, this is a misconception; in fact, the money from the project might go to some other fortune 500 companies. Your company has a small contract so you will get a smaller portion of money.
- Bigger companies often have lots of pending bills, their processing is really slow and more the number of days they keep the money, they will get good amount of interest especially when their balance is running in to some billion dollars.
Its natural for any one to get attracted towards big companies and big deals but it nearly will consume whole of your time, investment and resources, with the same amount of money, investment and resource you can strike a much bigger deal with a good profit sharing ratio with not so fortune 500 companies, read ahead to know more:
- Small company, small talks but big money – the smaller companies run faster because of decrease in the managerial levels and by the time you keep waiting for project to start on with bigger companies, you could already be starting the second business venture with the smaller companies. Small companies might not have big budgets but you get good earnings for your services.
- You can use normal means to contact them rather than spending on putting advertisements in newspapers or magazines, you can save lots of money by not gathering a huge sales force, which you have to do in bigger companies.
- Even if the economy is in recession, your deal wont be affected. The smaller the company, the smaller the investment and small investments are not affected by changes in the economical cycle.
- Small companies have smaller valuation periods and hence quicker results. The bigger companies don’t take risks easily they try the project for few months before taking any major decisions, so evaluation period is more and so you will have to keep spending money for presentation, services, resources, etc.
- The larger the companies, the larger the competition and bigger companies face competition from multinationals so its very crucial for company to stand in the competition. Smaller companies hardly have any competitors so everything is easy going.
Big companies are big companies, nothing can match the high feeling of being on cloud nine, working with fortune 500 companies but it has its own pros and cons and after reading the above points, I guess, you would have got some idea as to what goes in to striking a deal or just a single meeting with officials from big companies. Start working with smaller companies and earn good money, one day you might be surprised to see big companies wanting you as their partners.