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Large businesses build brand recognition by investing big bucks in advertising and promotion, reaping benefits from economies of scale, and their strong financials. Smaller businesses are seemingly at a disadvantage because of this. Even so, small companies can compete with the big guys.
Here’s how small brands can thrive by being strategic in how they approach their business.
In This Post:
Stop Trying to Be the Best at Everything
Some small business owners feel like they need to be the best choice in order to be profitable. However, you simply cannot be all things to all people and expect to succeed with this goal. If you want your small business to thrive, you need to focus your attention on doing one specific thing and excelling at it. While you can expand later, you initially need to throw everything you have at one specific niche and market.
Remember that it can take bigger companies longer to make marketing adjustments or to determine when the market is changing. A smaller business that understands its customers and keeps tabs on them may be nimbler and can more easily respond and adapt. Identify what you can do that larger companies cannot and find a way to exploit that to your benefit.
Use Your Small Size to Quickly Adapt to Fast-Changing Markets
Some markets adjust and change at a very rapid pace at times. For example, some fashion trends may go out of style in the middle of a season. A large company cannot easily resupply store shelves in every store with fresh merchandise. This is expensive and may not be logistically feasible. A smaller brand with fewer inventories may be able to quickly make a change to take advantage of changing market needs and demands.
If you happen to notice that your marketing approach is not quite right, you can easily switch gears to correct the problem. A corporation is like a heavy, slow-moving freight train. It may take a very long time for the train to slow down, stop and switch courses.
Your business may also be able to more quickly and easily take advantage of new market research data, innovations, social media challenges and more. When you focus on being the best in your niche and knowing when to act, you can put yourself at a strategic advantage over larger companies.
Offer Top Notch Customer Service
While larger brands strive to provide great customer service, they often cannot personalize their service because the company is simply too big. On the other hand, smaller brands are in direct touch with their customers. Use this to your advantage by creating more effective marketing and social media messages.
Building loyalty is critical to a small business, and your unique efforts in each of these areas can pay off for your business. In fact, you can even personally write thank you cards or address complaints that your customers have to further personalize the service you provide. In addition, by investing in the right technology for your specific needs and budget, you can automate repetitive tasks and provide a higher level of support to your customers.
Empower Your Employees
Your small business is only as good as your employees are. In order to compete with the big guys, who have the means to hire the best talent, you should invest in your employees’ continued education and advanced training. This way you will be able to reap the benefits of having empowered employees.
Educational opportunities should be tailored specifically to fit the individual’s current weaknesses and career goals. There are numerous training opportunities available. These include seminars, online courses, mentoring, formal classes in a live classroom environment, training videos and more.
It can seem frustrating and even impossible for your small business to compete against a larger company. However, when you understand the advantages smaller brands have, you can exploit these strategic benefits in your favor and see your business thrive.
