Small companies mostly die because of unclear priorities

Introduction

Recently, while working on some projects with friends,I was deeply impressed with some of the problems of startups. And one of them impressed me the most — unclear prioritization.

This also triggered me to think, why big companies can be big companies? Why are small companies always small? Is there an area where small companies have not been doing well?

Upon reflection my answer is that small companies often fail because of unclear prioritization.

As a small company, it is normal but not fatal to have few resources, Just do as many things as you have as much money as you have. But if you don’t have money, but choose to do a thing that doesn’t suit you, or don’t put your limited resources on the most important things, you may definitely end up facing nothing, and ultimately fail to reach your expectations.

Background Information

We were aiming to develop a project. There are primary and secondary processes in a project. My point of view was to prioritize focusing on the main process of the project rather than the secondary processes. My friend, on the other hand, would focus on some superficial experience, color, or some linear process of the product features. Here we had a conflict of priorities. Of course, in the end, things are done according to my priorities.

My point

The vast majority of the time, large companies are the ones with more resources, which allows them to have more resources and more opportunities for trial and error. For large companies, trial and error in one direction does not lead to the complete death of the large company. At the same time, the accumulation of various processes of large companies can help large companies make the most correct decisions as much as possible.

However, for small companies, due to the limited resources, a failure may face a total loss. Therefore, for small companies, prioritization decisions become invaluable. For small companies, if the leader is a smart and experienced person, he can be very good at evaluating projects and prioritizing work, lead everyone through the cycle, and finally achieve the desired results.

But if the leader is not smart enough, the odds are that they are headed for a bad outcome.

Analysis and comments

However, there is a bit of a paradox in this matter.

Decision making will be more important for smaller companies, but it’s also more difficult for smaller companies to recruit a usable talent — because the talent will choose to go to some larger company with a higher win rate to work for a more defined gain.

Smaller firms often get talent that is less than stellar, this makes the decision-making behavior of small companies more difficult.

For small companies, it takes a higher salary to recruit the right people to get really good people to work together.

Conclusion

Large companies have standardized processes that can be used to improve decision making even if the decision makers are not very good. But for small companies, if the level of decision makers is not high, the probability will die on the road.

Good decision making affects all businesses.

As an individual, if you have just entered the society, and have the opportunity to enter the big company to feel the decision-making process of the big company, it will be very helpful for your whole experience.

However, if you do not have access to a large company, then be sure to carefully select a small company, especially communicate with the leader of the small company, understand what kind of person the leader of the small company is, and confirm whether the leader of the small company is someone you recognize.Avoid wasting your time.

Startups/small companies may be a necessary path for everyone. But, I hope you will be able to walk on this path with less potholes.