Maria Arnedo
By: marnedo
Read in 4 minutes

Hey Small Business Owners, Why Are You Still small?

Our team at Camino Financial has spoken to thousands of small business owners (SBOs) and we’ve discovered something. Small business owners face a ton of challenges (that’s no secret), but one challenge in particular stands out.


Owners, have you ever asked yourself: Why am I still small? What is keeping me small? Where is my opportunity for growth and expansion?

One of the hidden reasons for complacency is that SBOs operate a “lifestyle business.” What does that mean? It means they see their business as any other paid job. In other words, the business will help them pay their bills and cover any spending they may have, and they are more or less satisfied with that.

Another reason is that many SBOs are reluctant to reinvest their earnings back into their business. Out of 28.7 million small businesses, half of them are home-based, and 23 million are sole proprietorships (State of Small Business, Mills & McCarthy, 2014). We understand that your business has to start somewhere (as a matter of fact, we started in a graduate school dorm with a pizza-stained carpet), but we strongly encourage you to take a close look at your business and


We know what you’re thinking: Why should I get bigger? What’s wrong with being small? I like my business the way it is. Well…you may feel that way now, but consider these points:

You Have Limited Resources to Compete: do you ever wonder how larger companies grow? Large companies find it easier to grow because they invest outside capital and earnings into more resources. If you own a small business there is a good chance you are under-capitalized. This usually means you are not able to invest in technology, equipment, retail space, marketing, new employees, etc. Without reinvesting in your business, your business will stagnate, and inevitably join the dinosaurs and the dodo.

You Are Not Diversified: if your business is small there is a good chance your geographic reach, customer base, or portfolio is not diversified. The less diversified your business is, the greater the risk, because you are essentially putting all your eggs in one basket. Are you prepared if there is a fire at your single store location? What will happen if your largest customer leaves? Or what if a competitor undercuts one of your core products?

SO what’s the solution? Think BIGGER. How do you do that? Here’s an example: visit a larger competitor and see how that business is doing things better. And of course, if you’re still lost and need help getting back on the path (Camino), give us a call at Camino Financial. We’re here for you.

Check if you
qualify for a loan