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January 16, 2020

In my conversations with people who work in management at mid to large companies, I find a general lack of respect for small business. In many respects, I believe the management in those companies feel that they are somehow more educated and intelligent than the small business owner.


One aspect of that attitude comes to the forefront when discussing the topic of having a diversified clientele. Many small businesses have a single large customer that day in and day out keeps the lights on. They then try to find other customers to fill in the rest of the schedule.


I have had a number of such management people puff out their chest that their companies had a diversified customer base. As it turns out the wonder of wonders large companies are no different. With Spirit AeroSystems not only is Boeing their largest customer, but the 737 Max program itself is also approx 50 percent of their business.


In some cases, the customers may be diverse but the method of distribution goes through a single point.


When push comes to shove the single large customer gives the stability a company needs to attempt building a diversified customer base. The downside is when that sugar daddy if you will, can no longer pay those bills.


While a company does not wish to be in the position of having a sugar daddy the temptation and necessity generally rule the day.


So in closing is management in larger companies more educated and more intelligent than the small business owner I would have to say emphatically no.

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