Successful relationships between large and small businesses

Many large companies are viewed very negatively by small businesses. This can be a reasonable assumption to them though, because of the greediness seen by large corporations frequently. For example, the last post titled “Hao Sheng Yi” detailed a specific example of a bad relationship between the two. When relations are done appropriately though, small and large business can execute efficient business plans. Large companies can be partners, distributors, and even customers to small businesses.

When large companies serve as business partners with small companies, there are several tips that businesses should consider before singing into a connection. Firstly the small business should do adequate research about the larger corporation. Many business propositions sound glamorous on the surface but the finer details can bring significant complications to the relationship. Small businesses also need to maintain sound business practices. Another tip is to recognize that the large companies need to make profit also if a partnership is to be formed. This can sometimes be difficult for a small business owner to comprehend when larger businesses are asking for large percentage share. Small businesses should never be intimated though, and should stand strong to their beliefs. If the cards end up not being right, then they aren’t right. In this case the small business should think twice about entering into an agreement. If they do chose to though, the small business should defiantly set up clear and open lines with strong communication methods to maintain good and honest relations.

Large companies can also be beneficial to smaller businesses as distributors. In this case, large businesses can increase small business relations very quickly. This can be the only option sometimes because large retail chains hold shelf space for only larger distribution companies they do work with. Large businesses can also be beneficial customers. This is frequent in production lines and other manufacturing companies.

Good relationships can be formed between large and small businesses. In the case of my moms business, she has entered a partnership with a distribution company. The larger company was able to get the product into retail space that my mom’s company would have had a very hard time doing. Large businesses can serve as excellent advancements for small businesses if the proper agreements are made.

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