The birth of an exciting new business is a stressful and difficult journey. Especially when a new small business has to compete with large and established companies. That is why we are leaving a few tips to take into account when competing with large corporations for small businesses, such as examples of the things large corporations do so small businesses can do the same.
Separation of the market
It is necessary to focus on the efforts of the advertising and selling to the correct audience. This is how recognizable businesses separate their objective group and achieve maximum potential customers. Small businesses should strive to find their niches by consulting data published on the internet or release surveys to small selected groups.
Alliances with other small businesses
Starbucks, the popular coffee franchise, and Barnes and Noble, one of the major bookstore chains, initiated an alliance where Starbucks opens small outlets inside Barnes and Nobles bookstores.
Starbucks gained a sophisticated image by associating themselves with the literary world, while Barnes and Noble gained a large exposure of their books. This is because clients could read while enjoying the café.
Small businesses can also create alliances with other small businesses by cooperating with other similar businesses that complement them and bring new opportunities for growth.
Prioritizing the customer experience
Large brands, like Apple, often offer a sense of community to its customers. They make them feel like they are a part of a special group that prefers luxurious technology with style and quality.
Developing the brand
It doesn’t stop at having a business and waiting for customers to come along, if you truly wish to grow with your business you should act as a leading brand of the market and give brand value to your medium or small business.
This means that your business shouldn’t be just like the rest, it should have clear elements that help your business stand out in the competition, a good name or logotype that goes with your business’ personality
How to challenge bigger businesses?
The Achilles heel of the small businesses is consistency. Many don’t have enough staff that can help them maintain the objectives of the business. In the business world, we want to hire people that contribute to the business with their capabilities; this is the key to success.
There are some real benefits of having a small business, you have tools that can give you the competitive advantage against bigger businesses:
- Analyze the strengths and weaknesses of your business and of your competitor’s. Once you obtain this information, you can move along with your own strategy.
- Start in a small and efficient way. Now that you have a general vision of the market and your competitors, you can focus on what you want. Choose a segment that can direct you more towards your business’ growth.
- Try to stand out from your competitors. Add on to some of your offers. For example, free internet. Learn from bigger businesses and take initiative. Consider making a promotion that’ll have your customers hooked on your business.
- Impeccable service. This cannot be replicated by any other businesses since your service will be more personalized and attentive.
- High quality products that are worth paying a higher price for.
- Create sales through recommendations. Your customers will share their positive experiences on your service with friends and family members. This will lead to more customers and purchases and it’s a great way to stand out from the rest.
- Comfortable environment. It’s important that your customers feel comfortable and at home without luxury, but it should be a cozy environment that offers all the comforts like other bigger corporations offer at their diners. By doing this, you guarantee the satisfaction of your customers.
As a small business you can develop more solid relationships with your vendors and customers. This means that not only can you be strategic, but also have the capacity to react quickly to changes.
Identifying how you can stand out from bigger competitors will be the key to your success. Remember that it’s important to know where you can’t compete so you are aware of where to focus your efforts, budget and resources so they align in the right places.