How Can Small Businesses Compete?
Posted by lamgy on January 07 2008 13:15:21
It seems as though every week some new giant retailer or franchise is popping up in the area. So how can small businesses compete and continue to grow in this type of market? How does a company beat the giant? Well, there’s really no clear cut strategy, but you can find ways to keep and grow your portion of market share:
Don’t be Afraid of Change
Ever walk into a store or restaurant and it look and feel the same as it was when you were a kid? This is not the impression that you want to make. If you’ve recently lost loyal customers to the giants try to find out why! Is it because of convenience purposes, maybe they have a drive-thru, or more convenient hours? Is it because of the price? Is it because of the payment plans? If you know why, then you can take measures to change and improve your company to meet the changing needs on your consumers. For example, you can put in a drive-thru, you can look for name brand items that you can sell for less than the giants (there are lots!), or you can work with a financing company to create a payment plan for consumers. It really is all about finding the problem so that you can find an alternate solution. The most important thing, however, is never to be unwilling to change or stuck in your ways.
Get Creative
With giant billion dollar companies competing, you will not be able to match or even come close to their marketing tools and promotions. As a result, you need to be creative instead. Marketing is only truly effective if it gets you in to buy something. You can spend millions of dollars or you can spend very little, as long you make the most of what you are spending. In marketing, the best messages are those that are creative and get peoples’ attention, that really communicate “what’s in it for the consumer”, and that make the person understand why you are better than the competition. Before trying out a marketing idea, think about what would get you in the door, then ask your friends, and go from there. Do not be afraid of going over the top, people will remember it!
Keep Expenses Low
Although giant companies can buy in bulk, they also have huge overhead costs. If you are looking to compete with their pricing, you should look to keep your overhead costs as low as possible. As a result, you can maintain margins yet still keep your prices as low as possible. A great way to grow your business and market your company with minimal costs is to use a website or an online store. Another possibility is to think green! In fact, if you find ways to cut energy costs you can save money and even promote yourself as being green, which is another area where giants are generally weak, but where consumers pay attention.
Service!
We’ve all been in line for way too long, gotten frustrated when we couldn’t find someone to help us look for a product, or have someone from another department try to give us information on a product he know nothing about. In a lot of cases, giants employ minimum wage highly unmotivated people to serve clients. As a result, we have all witnessed where they weak when it comes to customer service. This is a great opportunity for small business competition. Make yourself known for excellent customer service!
Competing with the giants is not easy, and no one the above will allow you to be successful. Small businesses who want to have a fighting chance need to make a comprehensive plan of attack involving all aspects of their business.