Isn’t it surprising that during an economic crisis, the big businesses fall first while the small ones survive? We sometimes wonder how it happens when we know that it’s the big ones who have more resources and more opportunities. Isn’t there a saying that says, “the bigger you are, the harder you fall?” Maybe more doesn’t always win. Sometimes, less survives.
I have heard so many success stories. But there are those that make my mouth gape open when I hear about them. One of them is the story of a cheap cologne manufacturer who made millions selling his products for $3 per 100ml bottle. Not only did the owner make enough to own a grand house for his family, but he was able to buy a dream vacation beach house. I can only scratch my head to contemplate how he made it. How did he? He filled a need that cost very little. We all want to smell good, especially after working out or playing sports. Would you put on an expensive perfume after an activity or a shower just to go home? And what about those who can’t afford branded perfumes or colognes? What also set his business apart from competition is that he established his business in a small stall inside a mall. Why would he put his product inside a grocery or drugstore and have consumers compare it to others? People walking past the stall readily sees his product and at $3 per bottle, it was a no brainer. Voila, he has volume sales in hundreds of thousands per month.
Looking at large companies as our models would be looking too far ahead. Aiming to be the next Calvin Klein is a goal that may be too tall for us regular folks. Start a business that only requires small capital but caters to majority of the market. At the moment, majority means budget-conscious consumers worrying about the economic crisis. If you are thinking of a business idea, a good question would be, “what do most people need and how much would they pay for it without reservations?” Remember that a profit of 50 cents per item may seem small, but if you multiply this by millions, it is bigger than what you can imagine. Maybe we don’t have to think big to make it big. Sometimes, thinking small just might work.