Running a small business can often feel like an uphill battle, especially when it comes to the big boys. Competing with huge multinationals may feel like going up against Goliath, but we all know how that particular encounter turned out. Here are five ways small businesses can use their size as a genuine advantage.
With a smaller staff and fewer processes in place, you might not have the bandwidth to execute massive ideas, but you have freedom on your side. With less red tape to cut through and a more agile team to brainstorm, plan, and execute ideas, you can take innovation from the drawing board to reality in the time it takes most oil tanker-sized businesses to engage their engines.
Be more nimble
If you notice a gap in the market, or a new trend emerging, try testing and executing any ideas quickly. You get to jump on new trends before the big guys have approved their budget. In an ever-changing world, you’re in a great position to respond more easily.
Show your personality
Big businesses usually have strict guidelines around brand identity and rules about what they can and can’t say. It can feel pretty faceless. Your small business can be much bolder, showing a real human face to customers. Start by sharing your story. Are you a family enterprise that was passed down? Was it born from pure passion and a career change? People connect with human stories.
Instead of stretching your resources in an attempt to cover the same bases as big companies, try specialising. It’s all about.
Become an expert
Concentrate on the things you’re best at and if you do expand, tap into specific products and services that fit with your existing offering.
Segment your customers
Is there a way to target a certain demographic within the wider market? Focusing on a smaller segment of the customer pool will give you the chance to get a foothold with a loyal audience and grow from there.
Connect with your community
You may not have the marketing power of a national corporation, but one of your key advantages is the fact that you’re local.
Develop a personal connection to your community. Think about ways you can get involved, such as donating products or developing links with local schools or charities.
Big business often has its sights solely set on profits and margins. What they’re typically not doing is providing quality customer service. Building personal relationships is one of the most effective ways to get the upper hand on your bigger competitors.
It’s the small things
If you’re a very small business, even something like remembering each customer’s name can go a long way. If you’re slightly bigger, using existing data to shape loyalty programmes, or pick out personalised treats and gifts, won’t go unnoticed.
Show that you really care
Go out of your way to satisfy customers, from suggesting a new product they might like to try, to offering to carry something to their car.
A great way that smaller businesses can make their mark is to act as a disrupter by identifying gaps in the market or consumer problems and positioning themselves as the solution.
Ask and you will receive
A quick and easy way to find hidden gaps is by asking existing and prospective customers about any pain points that they experience currently. Is there anything they all collectively feel is missing from brand offerings?
Conduct customer research by distributing questionnaires or scan through some of the worst reviews on competitor/review sites online, this will give you some insight into how you can potentially be a solution in the marketplace
Invest in insight
Invest in online insight/forecasting tools like Mintel or Statista, which delve into future industry and customer trends. They’re not free, but knowing which direction the market is heading in can keep you ahead of the game, which could be priceless.
It’s impossible to match the scale of large businesses when it came to brick and mortar stores. But with the advent of social media, small businesses can now use low-cost digital marketing to create an oversized presence with global reach.
Be organic
For small brands, traditional advertising is still largely out of reach. But organic social media marketing is a great way to boost brand recognition through a unique voice and personality.
Don’t be afraid to experiment
Try other digital strategies like Facebook advertising and pay per click (PPC) ads. They provide you with the opportunity to reach new audiences for a minimal investment compared to traditional advertising and can also give you traffic data that will give you better insight into customer behaviour.
It’s easy to become daunted by the sheer gap between your small business and huge international brands. But plenty of multinationals started out as tiny operations.
And the digital world now makes it much easier to spot opportunities and get the word out about your brilliant business. By using the in-built advantages you have – from your agility to your personality – there’s no reason why you can’t compete on your own terms.
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