Tom, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. Tom later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies ____.

A. tend to not change due to inexperienced management
B. can adjust more easily to capital shortages
C. take more time to start new endeavors
D. typically maneuver slowly with new ideas
E. can get started more easily and maneuver faster

Tom is satisfied with his business because small businesses need only little capital to startup, and some only incur initial cost. For example sales as a service companies (SaaS) only incur major cost of initial product development. Subsequent cost is for maintenance and modification of the product.

Also small businesses can maneuver faster to changes that affect it. Take for example if a product is experiencing downturn in the market small businesses can quickly make product change to a more profitable one. Unlike large companies that invest much resources in a product, a change in product can be very costly.