Gabrielle Loren
Small Town vs. Big City: Familiarity vs. Anonymity?
I
am from a big BC city. My first employee Candace grew up in the small town of Lillooet.
Candace Nancke
We came from families where running your own business was the norm but had to face different challenges, given the size of our communities.
Doing business in a small town has both positive and cautionary issues. “Privacy is the biggest issue,” says Candace. “Having coffee with a client in a coffee shop brings privacy concerns; your waitress knows you, anyone can listen in on your conversation, and the fact that you are having a meeting can be a topic of conversation. Privacy concerns are multiplied as everyone knows everyone and places to meet are limited.” Having your neighbour, who is also your accountant, know all your private financial affairs is also concerning to many people. If your business and finances are all doing well, that may not be an issue but if you are dealing with hard times, having your neighbour/accountant watching every step you take can be very disconcerting. On the other hand, it never fails when doing business in a small town Volume 27 Number 3 Fall 2018
that questions are asked while you are watching your kid’s soccer game or when you run into a client at the grocery store. That is great when relationship-building but not so good when you have only time and expertise to sell! Can you invoice for that offthe-cuff advice? Being the only service provider in that town can also provide for a robust business because you hold a monopoly. That doesn’t mean you can overcharge or underservice clients but it does provide a steady client base. As the town grows, more service providers will come, so stay on your toes!
That is great when relationship-building but not so good when you have only time and expertise to sell! Can you invoice for that off-the-cuff advice? Some clients may turn to providers outside of town, especially since technology allows for a remote work environment. Technology also allows you to work remotely. Being at the summer cottage instead of your desk in town is a great way to achieve a live/ work balance. When operating a business in a big city, a lot of the business principles remain the same. You must The Scrivener | www.notaries.bc.ca/scrivener
give good service and provide value for fees charged but many times, getting clients is more difficult. A disadvantage of a big-city business is the cost of operations. It is more difficult to find staff who live and work in the same community, the cost of rent for premises is higher, and you may have commuting costs such as parking. Networking is an important aspect of a big-city business but a caution here is to weigh your networking time versus business obtained. Many times I see businessowners spending hours networking, yet the business obtained is minimal. Strategic networking works best with emphasis on the niche area of business you are targeting, while ensuring you don’t miss opportunities that may lead to other niche clients. Operating your business in a large town can be very rewarding but the way you grow, manage, and operate your business will ultimately determine your success. Operating your business in a small town has its own rewards but limitations must be strategically managed. My choice? Start, build, and sell your business in a big city, then retire to the small town! Best of both worlds! s
Gabrielle Loren, CPA, CGA, practises in North Vancouver and New Westminster, BC TABLE OF CONTENTS
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