This is the follow up article form last weeks post "10 Ways to Act Like a Big Company – Even if You Work Out of An Apartment"

I recently read the following quote:

“All small companies try to look like big companies and all big companies try to look more like small companies”

After reading this I quickly realized how true this statement is.

Think about it. Large companies always want you to feel like they are there for you; that you can turn to them for anything, that they are your friends, and your family (the attributes of a small company).

Another reason large companies would want to act small is that small companies are nimble and innovative. They have nothing holding them back. They don’t have to go through the chain of command to make decisions, and they have less to lose if they screw up.

Here are three good examples of large companies that have characteristics resembling a small company.

Zappos

Their customer service agents can send you flowers if they sense you are having a bad day.

USAA

This is the company I use for all my insurance needs and they are fantastic! Every time I call I get to talk to a real person almost immediately. And once, the customer service rep was even able to add hundreds of dollars to a renter’s insurance claim I made without further approval – she just made a direct deposit into my account!

Starbucks

Although it is obviously hard to act small when you have your brand name plastered on every street corner, they try to make each coffee house a community of its own, with a small and personal feel.

So, contrary to my article last week giving you advice on how to look larger than you actually are, here are five reasons acting large may be bad.

Acting Small is About Providing A+ Customer Service

The above companies show us that acting small is not necessarily about actually being a small company, it is about providing services and support without the hassle of corporate legislation and policies. As a small company you have an upper hand when it comes to providing A+ customer service. You have the ability to connect with your customers on a more personal level and establish relationships that large companies cannot.

Consumers are More Critical of Large Companies

I am much more likely to get mad at the faceless T-mobile then the mom and pop store where I bought my Bluetooth earpiece from. Large companies are easy to attack and easy to be critical of because many of them don’t have a face. We also tend to think that large companies can afford to make concessions to loyal customers such as ourselves. A small company, if branded correctly, will have a face – a personal side to it other than the brand name and logo.

Small Companies are Easily Forgiven – Large Companies are Not

How often does the CEO of a large company call you and apologize for something they did wrong. Never! Small companies can and should do this. When a small company tries to look large and has an entry-level phone operator (who doesn’t care about the customer or the company they work for) call an angry customer you will most likely only fan the flame and make an agitated customer angry. If you are a company owner you are the one responsible for your company’s performance and if something went wrong you should be the one to ask for forgiveness – you are more likely to be forgiven. As a small company you can do this! …unless you have a lot of angry customers.

Acting Large Raises Expectations – Some of Which You Cannot Meet

Acting large may increase your brand strength or give you more credibility, however, it also increases your customers expectations of you and your company. They may have expectations you cannot meet. Avoid this by being real and transparent about the size of your company.

The Recession Means Consumers are More Likely to Support Local/Small Companies

This won’t work if you think you can charge more than your larger competitors, but it will if you offer a similar product or service for the same price. When people spend money in this economy they want to know it is going towards a good cause – and nothing is a better cause right now than supporting a local economy. It is far more difficult for a consumer to see where the money they pay to a large company goes than it is for them to see where the money they pay to a small company goes.

Realize that you have the upper hand by being a small company, and you should avoid looking larger than you actually are.

Just remember, looking large does not equate to looking professional. In fact, you should want to look professional – and looking professional may make you look slightly larger than you are.

Discussion

What do you think about looking larger than you actually are? Is there anything you would add to this list?