If you are like most small businesses, you must compete with much larger companies that are providing similar products and services. It can be a challenge to operate when these “big guys” offer greater efficiency and selection at lower prices. So how can your small business succeed with these less-than-optimal conditions?
Use “small” to your advantage. Take pride in your business’s identity and promote it as a selling feature. Learn what makes your business unique and what you can offer that other companies, especially those larger than yours, cannot. That is how your business will get noticed, and how you can compete, so utilize it to your best advantage.
Below are some examples:
- Sell Unique Merchandise. Since you can choose to sell whatever you want, offer distinctive products that will excite your customers. Although larger stores may be able to impress customers with large quantities and the variety of goods, your store can focus on uniqueness and quality. Customers are willing to pay a bit more for thoughtfully curated, out-of-the-ordinary merchandise, even if the prices are a little higher than your larger competitor’s.
- Offer Individualized Services. As a smaller, more perceptive, service business, you are in a position to cater directly to individual customer needs. You can create specialized service packages or offerings targeted to the particular preferences of your customers.
- Watch Your Business’s Appearance. Unlike a large business that often has corporate mandates on how the business must be set up, you have the freedom to determine your décor. You can arrange and rearrange your merchandise and freshen up your look whenever you think it is appropriate. Providing visual interest at your business locale will ensure a unique and gratifying shopping experience for your customers on every occasion.
- Care for Your Customers Consistently. As a small business, you are more likely to know your customers, and they you. This affords you the ability to more personally influence your customer’s experience. A smaller staff also means that you have more control over customer interactions. You can ensure that your customers receive the same consistent, high-level treatment every time they shop no matter which employee is assisting them.
- Make Your Marketing Personal. No one knows your business and your potential customers as well as you do so your advertising efforts should focus on that strength. Although larger stores may be able to afford more professional campaigns created by big advertising companies, you should focus on a more personal feeling. Highlight the elements of your business that are unique to your location or appeal to your customers’ preferences. Many customers feel strongly about “buying local” to support their community’s local economy, and they will be attracted to a marketing campaign that emphasizes the positive qualities of your small business.
- Reward Your Employees. You have the ability to directly influence the working conditions and satisfaction of your employees in a small business. You can more easily respond to changing circumstances, revise schedules, or give bonuses or promotions. Thus, you can make your company an employee-friendly place to work, even if you cannot meet the wage or benefits scale of a larger employer.
Embrace and promote the unique elements of your small business, and you will be able to successfully compete with the “big guys.”
To explore more small business tips on employee management, banking options, financing and more, visit California Bank & Trust's Business Resource Center [cite::171::cite] [cite::172::cite].