Challenges Of A Big Business In A Small Town
In Dream with your Eyes Open, while I have covered a myriad of topics I felt at the end that I may not have answered some of the Qs on the mind of many today...Here was one such Q asked to me many times and how I answered the same in the book
Question
People and talent are critical to the success of any business. Having started a business in my small town, I’m now having trouble assembling a great team. I know that thousands of entrepreneurs face the same challenge. Any advice? Should I relocate?
Answer
Start by turning that perceived disadvantage to your favour.
One of the biggest challenges many businesses face is their inability to scale because they lack a thorough understanding of the consumer and struggle to operate outside a few big cities. India’s real growth in the future will come from small- and mid-sized cities, the very place you’re sitting in right now!
Mr Tata didn’t hesitate to build the largest steel plant in the world in Jamshedpur, at that time a small city. Nor did Mr Ambani dither, when he built one of the largest refineries in the world in Jamnagar. Walt Disney brought his Disneyland dream to fruition in a valley miles from any real city. The list goes on.
Your colleagues and you grew up where you’ve started your business, that market is inscribed in your DNA and so, there’s a clear advantage for you. Your overall cost and salary structure is going to be much more competitive in a smaller market than in one of the top four cities (where you’ll be overpaying with the big boys). And if your business has a manufacturing, assembly or distribution element, chances are you can stay closer to your operation by being where you are right now.
Let’s zero in on why you’ve had difficulty attracting top talent. Maybe you’re looking for a research and development head, maybe a great design or marketing person. So pick the top two hires where you need the best talent, increase your budget, overpay for talent and create an attractive environment for those individuals to move to your city. Offer them better living accommodation than they would get where they currently live, clubs, some great schooling, travel and, if you think necessary, stock options, wealth-creation opportunities, or maybe even co-founder status.
What are your choices if you want to build a great business where you are?
- Look at a branch office outpost in another city where the talent you want can stay—understanding that such a move splits the company at a stage where you need everyone together so as to build the right professional culture.
- Scale down your ambitions and cut your coat according to your cloth, which is pretty much what you were thinking when you asked this question.
- Pay extra for those top hires, and get on with it.
They’re all workable solutions—just take a call! It boils down to your own mindset and vision and your willingness to turn that challenge into an opportunity.
Sustainability Solutions Cultivator: Climate Resilience ESG Green Buildings LEED Smart Cities Planning SDGs Architecture Design EPR CSR & VisionZero viz Informal Economies Open for challenging Job, Project/Partnership
6 年Raipur -Bhilai no longer a small town but a formidable glocal talent and leaders pool calls it home in this rural central hot dry region .. I’m sure every year so once have watched it grow .. just like we do .. it’s easy to figure out big town Americas yet no Great School but the open heart visits to mofussil countryside can fathom a nations living working .. when you see the Khas cooler given way to AC or a tribal schoolgirl riding bicycle .. remember the roots that would always welcome you (it’s up to us in life to make yourself ‘belong’ .. to a place or to a job .. as I am about to sayyyy : screwwwww this worrrrrrld:) and here I find a Screwala article;-)) https://www.dhirubhai.net/pulse/challenges-big-business-small-town-ronnie-screwvala
Sales
7 年Hire employees in remote locations. A lot of work can be done from a different city using computer and internet. We dont always need the employee to show up physically to office. Break the old model and accept the new way of change.
Great read blog post sir !! with inline dream few days back . . . I just left my fat Growing Job to go back to my CITY to make something BIG . . . for which it will be gonna recognised in the INDIA !!
Founder, Startup, Business Improvement platform
9 年My approach was a bit different. Our company is based in Mumbai but we built our technology team in a tier 2 ( actually 3) location. Being a bootstrapped company, which i intend to remain, having a check on the costs was critical. Luckily bcoz of this, I could assemble a good team by paying them higher salaries and comfort which the local companies there dont offer. Large office space which is less than 1/3rd of cost in a Metro. Lower electricity cost. We negotiated with the Office owner for UPS/genset by assuring a long lease. But the cost of this was just 50% than what it would have costed us in Mumbai. No attrition rate till date ( 2 years plus). Lot of employees prefer working locally due to their family commitments or the higher cost of living in a Tier 1 location, identify them. I too had this weird idea of moving the team to Bangalore and had almost done so. Luckily my meeting with Shanti Mohan from letsventure put some sense into me and due to that, today, i am building 2 amazing platforms within the same budget which i had set aside for the venture.
Learner | Edupreneur ? Foodie ? Traveler ? Nature lover ? Friend !
9 年Great ! I am trying to my bit by turning the challenges into opportunity.