The Evolution Of Small Businesses

THE EVOLUTION OF SMALL BUSINESSES In an ever evolving world, small companies must learn to keep up, and take advantage of changes in the business world that will allow them to make the most of their business endeavours. There once was a day and age when all work for a business was done by employees directly hired by a business, to work inside a'specific office building. This is no longer the case. In order to survive, small busi- nesses must adopt new practices. THE STRUGGLE FOR EXISTENCE Competition is fierce in the business world, and small businesses have a quick death rate. Failure Rate of Businesses in Relation to the Amount of Years They've Managed to Survive 71% 69% 63% 66% 60% 55% 50% 44% 36% 25% 4 10 Year THE MAIN FACTORS THAT RESULT IN BUSINESS FAILURE: Employee Turnover Finances Limited Resources Competition Visibility Manufacturing Networking THE PROCESS OF ADAPTATION Businesses must find new, creative ways to adapt and change to avoid failure in the business world. One solution has been outsourcing which has been on the rise since 2000: |Amount Spent on Outsourcing in the US 991 95 931 913 875 805 829 771 763 70 648 601 524 465 201 2012 REAL ESTATE OUTSOURCING COMES IN TWO FORMS: The Entire The rise in outsourcing shows that businesses are seeking flexible alter- natives when it comes to who is doing the work, and where they are able to do it. Business Operation Branch Offices SURVIVAL OF THE FITTEST This means that businesses are seeing results that are allowing them to survive and compete by diverging from the traditional business model. Gain Access to management expertise unavailable internally 15% 44% Reduce or Control Costs Gain access to IT resources unavailable 34% internally 15% Accelerate Project Reasons for Oursourcing Accelerate Company reorganization/ transformation 22% 31% Free up internal resources Reduce time to market 28% Improve Business or Customer Focus Outsourcing, specifically in real estate, provides businesses with the flexibility to be able to avoid risk and reduce costs. If a business' branch office is performing wellI, that business is able to increase office space. If the business' branch office is performing poorly, that business is able to decrease office space with very little risk or financial loss. This gives businesses the adaptability that is needed to evolve and ultimately survive. httpwdictionary reterence.com/brow se/struggierforexistence http://www.smartplanet.com/blog//bulletinyoutsourdng-to-surge-in 2013- study http/www statisticbraincom http://www.stabstacom/stabstics/e070/giobal-outsourcing-market sze http://www.thetreedictionary.com/suvivaleofethertte st http/smallbusiness.chron.com/struggles-smal-business-owners-313htmi http/www sdsciplines.com premfer http/smallbusinessesdoitbettercom http:/www.merriam-webstercom/dictionaryvariation http:/www.philstarcom BUSINESS CENTERS Billion (USD) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2013