Are you finding it tough to compete with big businesses? As a small business owner, there’s always a concern when a big-box chain store moves into town. And why wouldn’t you be concerned? Big box chains can generally offer a larger variety of products at lower prices. It’s only natural that your customers would be curious about a new business as well as any cost savings. You may even lose some of your customer base to the new chain store. So, don’t wait until the last minute to start strategizing. You need to figure out a plan that will make your business stand out from others.
Here are some proven strategies used by many small businesses.
- Know your competition.
Get to know your competition and learn how to compete on your own terms. You likely won’t be able to compete with a big business based on prices. Your customers and employees are a great place to look for feedback. Find out what they like about your business and where you need to improve. It’s not always about getting the best price. Good customer service goes a long way in attracting new customers and retaining your customer base.
- Distinguish your product or service.
Do you carry specialty items? Can you provide products grown or made locally? Or, maybe you offer fast delivery of your products. If you can show your customers how you stand out from your competitors, they are more likely to come to you when they need a service or product that you provide.
- Utilize your advantages.
Gain customer loyalty by tailoring your services/ products to your customer needs. When your customers know you care about what they like, it creates a strong bond with your customer base.
- Customer service.
Most likely, at some point, we’ve all come in contact with employees of big companies that don’t seem to be trained well, that have been inattentive, and even rude at times. When you own a small business this should never be tolerated by employees. You should not ignore customer complaints or bad customer service. This behavior will alienate your customers and could mean the difference between success and failure for your business.
- Revenue sources.
If a large competitor were to move in nearby, you could add new revenue resources to your small business. For example: If you own a restaurant, bakery, or deli shop, you could add delivery or catering as a new source of revenue. Even if you do lose a small share of the market, adding new resources will help to offset those losses.
- Provide a great work environment.
It’s also very important that you provide a great work environment. This will help retain employees who want to be there. When you hire new employees, provide in-depth training. When an employee knows their job and what is expected of them, things run more smoothly and it will make for a happy work environment.
Whether it’s a large or small business, providing good customer service, quality products or services, at a reasonable price will attract customers to your business. At Summit CPA we offer multiple resources that will help get your business on the right track. For more tips contact our office at (866) 497-9761 to schedule an appointment with our Advisors.