It may sound like a lost cause for a small business to compete with big business. But, with a good strategy, it can be done. If you just sit back and tell yourself there's nothing you can do, you may as well just give up and close your doors now. You need to think outside of the box in order to compete. There may not be a “one strategy fit’s all”, but certain strategies have proven effective for many small businesses. Below are a few things that you can do that may help you to develop a winning strategy for your small business.
- Capitalize on your advantages. Developing innovative ways to satisfy your customers' needs and retain their loyalty is key to your success. Establishing close bonds with customers and providing services tailored to their individual needs goes a long way.
- Compete on your own terms. As a small business, it's unlikely you'll be able to compete with big business on the basis of price alone. But you can give your customers something other than bargain prices.
- Hire the best employees. A small business can be a great place to work. By providing in-depth training and an enjoyable work environment, your employees will generally return the favor by treating customers well. On the other hand, we've all met the staff at large chains that were inattentive or just plain rude. As a small business, most can't afford to ignore complaints or allow poor customer service. Don't let one obnoxious employee create a bad reputation for your business.
- Expand your revenue sources. If you own a coffee shop and a chain coffee shop moves in to the area, don’t give up, add delivery or catering services to your business. You may lose some of the market shares to the larger business, but new sources of revenue can offset those losses.
- Differentiate your product or service. Make your customers aware of the differences between your small business and the big chain stores and they will come to you when they need something special. Maybe you can offer specialty items that the big guys don't carry. For example, fresher produce that is locally grown
Whether large or small, there will always be room in the marketplace for firms that provide quality products at a reasonable price and friendly knowledgeable service.
At Summit CPA we offer multiple resources to assist and help your business grow. If you’re ready to get an edge on your competitors? Contact our office at (866) 497-9761 to schedule an appointment with our advisors.