FIR 114: How To Break The Small-Business Size TRAP ??!!

Financial Investing Radio

What are the two secrets to helping your small-to-medium business break the Small Size Trap? Would you apply those secrets if you knew them? Welcome to another episode of ClickAI Radio. In this episode, we look at the two secrets to investing in your small to medium business to break the small size trap.

Hi Everybody, thank you for joining. Okay, so the small size trap. What is this? Well, it's when a small company has a challenge of getting or growing larger, right? It's where you have a difficult time breaking the barrier of getting from a small to a medium and ultimately to a large size company.

Here's a couple of statistics this came out of a Harvard Business Review. What they found was that until the year 2,020%, of small companies became medium or large each year, right. So every year. Now, the downside is that by 2017, this was cut in half. Wow. Now let's look at that same period until 2,080% of large companies retain their size. All right now by the year 2017. Though, this said not cut in half, but actually had increased to 89%, almost 90%. So in the same period of time from 27 from 20. Yeah, let me try that, again, from 2000 to 2017, small companies 20%, drop down to 10% that actually became medium or large each year, whereas the large companies actually increase right, that that's incredible. That's the small size trap.

So Harvard, you know, in this research article, they said, What was it? What was the difference? What allows a company to break the small size trap? So for the small companies that became larger, what were the secrets, and there were three of them that they pointed out. One was something called investment in intangibles. That's number one, number two, a higher asset base. So they're bringing in more revenue Make sense? And number three, they were a younger company. All right. So that's that was the secret sauce for small companies. But what about for the big companies? What was it that allowed them to either retain their size or to grow? And what they found is it was investment in intangibles. So the common thread here is, there's investment in intangibles for small companies to break the small size trap. And for the large companies to become larger, it's investment in tangible. So the question is, what the heck is investment in intangibles? I love this part because it gets to, I think, excuse me, it gets to the core of what it really takes for a company of any size to grow. The number one thing was an investment in research and development, data technology, artificial intelligence, I was number one.

Number two was brand equity and marketing. Right? So market awareness. So the ability to create that. So those are the two secrets around investment in intangible. So as a small to medium business owner, you look at yourself and say, Alright, where do I put my scarce resources? Well, according to the study, you know, they found that you did invest it in technology, right? you invested in brand equity and marketing. So those are the two key areas. The interesting thing about this, is that with AI with the big companies, right, it's giving them this leapfrog capability, right? They're jumping ahead, getting bigger and bigger. And it's allowing them to not only just incrementally grow and retain their size, but to actually leapfrog. So one of the most important things to do for a small to medium business owner is to take advantage of the AI that is coming available to you. And there's multiple platforms for that to do that on. Google's got some cool stuff.

Clearly, Amazon has some things and certainly as your does as well, there's the cloud based approaches. One that I found really interesting is while while the big cloud providers have an awesome set of platforms, they're still required. Significant team and skill sets around that. There's another group that I've seen that I'm really impressed with. It's called abl AI, B, LA. They're built for how you bring AI into the business right there, they create these views that are incredibly simple for the business owner as well. So one of the things that we find interesting with click AI is leveraging these skill sets so that the small to medium business owner actually doesn't have to worry about the AI portions of it.

Rather, he can focus on the questions around, what is it that's affecting my business? What are my pain points? What are the things that I'm trying to move away from? And what are the targets I'm trying to go to? And in fact, I think Russell Brunson put a book out called Traffic Secrets. And I think I think it's page 19. Actually, he's got this cool view there that says, write out your pain points. And write out what your targets are things you want to move towards. When you can answer those questions. That's actually a great entree into a business view around AI right? It helps you to say alright, what problems do I want to go see if I can solve with AI? That's great, a great place to get started. So the trick here as a small to medium business owner, don't shy away from investing in the marketing and the brand equity and don't shy away from investing in AI to leapfrog your competition. Hey, that's it for now. Thanks again for joining and until next time, invest in your INtangibles.

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