By New Hampshire Business Sales Inc. Associate John Howe

Sometimes it is good to be small.

This can be true for business as well, especially as the economy shows signs of improving. Though the big companies deal in larger sums of money and have economies of scale on their side, smaller firms can react more quickly and ramp up more appropriately to take advantage of shifts in the marketplace.

Many larger companies are trying to overhaul their cultures so they can be more nimble. But they are like cargo ships, where it takes a long time for instructions from the wheelhouse to result in a change of direction.

The trick for smaller companies is to find ways to preserve core elements that make their operations successful while being responsive to the needs of customers. They are like powerboats where it takes less effort to adjust direction slightly while still staying on course.

Business giant Wal-Mart has recently launched a new effort away from the cookie cutter approach to adjust stores to local tastes and needs. They are working to be more responsive. They are learning that sometimes the best ideas don’t flow from Bentonville.

Small business should keep this in mind. Being nimble and responsive to customer needs is a path to survival.

An example can be found in a local chain grocery store that offered a handful of pre-made sandwiches. They are quick to pick up, but lack the satisfaction available from the independent sandwich shop down the street that provides a choice of breads, options in meats and wide range of vegetables as toppings. And they can fill your order in minutes.

Which approach do you prefer?

The cause of being nimble is a strategic advantage small business owners should capitalize on. Rather than trying to match the big box stores, they can cater their inventory and services to their core market.

We recently sat at a busy intersection with four lanes of traffic.

Running through the maze of truck tires and speeding traffic was a small squirrel. It darted back and forth, reacting quickly to the movement on the highway. Against all odds, it made the crossing safely and went on with its search for food.

Being small and nimble has its advantages.

As we go thru the second half of the summer, when things are usually pretty slow in our business because it is vacation season, we are pleased with the level of activity we are experiencing.

Customer traffic has picked up.  Sellers are calling to consider listing their businesses for sale, and bankers are courting us again to bring them deals.

If you have been thinking of buying a business, and have some cash to use for a down payment, take a look at the listings on our web site.  Be aware that a lot of the prices on businesses for sale have come down because of the slow last year in most of them.  Also be aware that bankers are going to take a hard look at the deal and will be conservative in what they will finance.

In a lot of cases seller financing assistance is required and sellers are understanding that.

There has been a lot of publicity lately about Small Business Administration loan guarantee programs.  The best news is that they are covering their own financing fees right now, leading to very significant savings in closing fees for loans they guarantee.