Small business owners can sometimes find it impossible to compete against massive corporations. Big businesses can typically leverage millions in advertising budgets and can outsupply and outpace small businesses at every turn.
However, small businesses shouldn't be so quick to throw in the towel. Some experiences that less expansive, more niche businesses can offer, large chains fail at doing because of the very things that drive their success. Below, 11 members of Forbes Coaches Council discuss some of the advantages that give small businesses the competitive edge over large corporate entities, and how those advantages can help shape their success.
Forbes Coaches Council members share what advantages small businesses have over their larger competition and how they can use them to their benefit.
Photos courtesy of the individual members.1. Custom Approach
Small businesses can offer a more personalized and customized service. With large businesses, there is often a "one size fits all" mentality. Small businesses can use this to their advantage by taking the time to get to know the potential customer, evaluating their needs and developing a solution that is perfect for the customer. - Amy Modglin, Modglin Leadership Solutions
2. Emphasis On Disruptive Innovation
Your small business likely exists because larger companies are not serving customers effectively. Wherever possible, you should highlight and exploit every innovative aspect of your products or services. Emphasize those unique elements that set you apart from large corporations. Then, show them the path to innovate and disrupt their own industries by working with your firm. - Mark Nation, Nation Leadership
3. Flexibility And Less Bureaucracy
Big-name companies often need to focus on consistency, whether it is internal with staff or external to customers. Approval processes can take a lot of time in a large organization. Small businesses can be more flexible in how they reward or recognize staff and how they deal with customers. They can add the personal touch both internally and externally. - Kathy Lockwood, Blue Water Leadership Coaching
4. Creativity
Small businesses can win through creativity. That is largely stifled at a big company. Think of the approval and response process—those things take time and are made to be generic. Think also about how the customer feels on the other end of it: like a number. A small company can react faster, build creative solutions and still stay inside their own lane. - Dominic Rubino, BizStratPlan
5. Level Of Care
Small businesses provide a level of care and involvement by name-brand people that most corporations aren't structured or can't afford to provide. The type of people who choose to start (or work in) a small business is often motivated by a deep love for their craft, which they continually invest in honing for your benefit. They invest in you as well as the business, because you are the business. - April Armstrong, AHA Insight
6. Adaptability
Business is all about people, and small businesses have the advantage of knowing each and every client really well. They have the ability to provide a one-on-one, personalized experience that clients really value. You also have the ability to be flexible and adapt to customers’ needs, including more easily bringing in new services and products, which could bring potential new revenue sources. - Andy Bailey, Petra Coach
7. Passion With Purpose
Passion with a purpose ignites possibilities. Successful small businesses have no shortage of passion. When they connect with a customer's passion, the energy accelerates desired outcomes into impact. The impact is the full realization of a promise made and kept and the foundation of a long-term relationship. - Cyndee Blockinger Lake, Blank Page
8. Active Listening
Unlike large companies, small businesses can differentiate themselves by providing a feedback loop that enables two-way communication. That two-way communication can publicly influence future product design and the scope of services. In addition to the obvious benefit of public interactions, this particular method paves the way for consumers to become stakeholders and advocates. - Kamyar Shah, World Consulting Group
9. Speed And Agility
Stop trying to be something you aren't. Be the company who can make decisions faster, deliver small batches of products without issue and customize to meet demand. You can be a trusted resource when your customer needs help or wants to feel special. Be the hero to your customer as the one who is able to respond in small ways when the big guys are too busy trying to cut through their red tape. - Erica McCurdy, McCurdy Solutions Group
10. One-On-One Magic
The advantage that smaller businesses have over larger companies is their ability to connect one-on-one with their clients. These connections are always deeper in nature than those from larger companies and it is something small businesses can thrive in. Having the right people communicating to clients gives your company a personal touch that large corporations simply cannot match. - Jon Dwoskin, The Jon Dwoskin Experience
11. Intangible, Unique Benefits
By focusing on the broader benefits offering, small business owners can compete with larger companies. Intangible benefits like access to senior leadership, flexible work schedules or relaxed dress code are often unique to smaller organizations, and candidates may be swayed by the opportunity to take advantage of these benefits in lieu of a higher salary from a larger organization. - Rick Gibbs, Insperity
Opinions expressed by Entrepreneur contributors are their own.
Moving into a new city or job can be daunting, the hassle of finding accommodation, the stress of moving personal items and most especially the people or city accepting someone new might not be pleasing.
The same applies to small businesses that are launching into an industry ridden with bigger competitors. For an SMB, finding a niche can be time-consuming but rewarding on the long-term.
In the article below, I will be sharing 4 effective marketing strategies for SMB's against bigger competitors.
Related: Stand Toe to Toe With Legacy Giants by Investing in a Data Strategy
Small businesses need to go laser focused on a chosen market segment. I am talking hyper focused, zeroed down to the barest minimum then expand from there as they grow.
To compete and beat bigger rivals in the industry, SMB's need to focus on their basic consumers. Basic consumers can range from college students to a particular demographic. Recognizing and marketing to the basic consumers allow for quick sales, more revenue for marketing and the ability to grow a following.
A perfect example can be found in Red Bull. Co-founder Dietrich Mateschitz started his little-canned drink with no specific market in mind, and even with no competition in the energy drink industry, sales were slow. Consumers could not decide if Red Bull was a sports stimulant or a soft drink. So, Mateschitz went back to the drawing board and laser-targeted a market segment (students) and marketed to them relentlessly by sponsoring events, throwing campaigns, devotional social media challenges.
By targeting a specific market, Red Bull was able to build a following, sales skyrocketed and growth exploded. Right now, Red Bull can be found in almost every athletic or sports events holding a market share of 50 percent in Canada and 46 percent in the US as at 2011.
Key Takeaway: If you're starting a business in a market that has established competitors, you need to niche down to strive then win it. Dig deeper and find untapped subcategories in your market, sell to that core customer then expand.
2. Pick your angle and flaunt it
You're in business to solve a problem for consumers. Now to strive and beat the anacondas in the room, you need to hold a competitive angle and flaunt it.
Related: The Secret to Outpacing Your Rival? Competitive Insights.
Winning customers over is all about effective storytelling. Your competitive angle (which will be your story) can be the reason you started your business (origin story), the value attached to your products/service or the difference between your products/service (product story).
Your job as the founder is to find your angle and turn it into a story which can be shown to customers in your marketing campaigns and website.
Your competitive angle for an amazing marketing story can be any of the following:
- Responsiveness to customer complaints, inquiries. How long do you take? Let them know.
- Business A uses cheap packaging and yours is more alluring? Tell your target customers.
- Business B products are not totally safe and yours is eco-friendly? Tell your customers.
- Got a celebrity on your team or some smart-ass on the team? Tell your customers.
- Offer better courier service than business B. Make it into a video for your customers.
Businesses such as Apple and Sony have used innovation as a competitive angle, IKEA boasts of its ability to provide superior furniture at affordable rates and these stories are always reflected in their marketing schemes.
Key Takeaway: The list is endless, head back to the drawing board and make a board full list of the difference between you and your competitors and make it into stories for your consumers.
3. Jaw dropping products and services
According to a new study from Microsoft, since the year 2000, the average attention span of humans has dropped from 12 seconds to 8 seconds.
In relation to business owners, you have less than 8 seconds to convince a customer about your products wherever they find them. Your website should pop and grab customers' attention allowing them to understand your products or business.
Design your website to make valuable promises about your products and experience them. With a laser-targeted customer base, your products should be designed for your customers, it should deliver a valuable promise and experience which is entirely new and different from your competitors.
Back in the 80s when IBM and Microsoft produced PC's, Apple came along with something revolutionary. As a new business, you need to build cheaper, better and different products which will earn you your spotlight.
Key Takeaway: Create products with a hook, something revolutionary and at the same time valuable to your customers.
4. Customer service and relationship should be your sidekick
One huge advantage of being a small business is the ability to interact with customers directly removing the bottlenecks and bureaucracy of larger businesses. Creating space to deliver better experiences and exceed customer expectations.
Your ability to respond to emails, inquiries, send handwritten "thank you" notes and solve complaints results in amazing customer experiences which yield more customers through word of mouth marketing, online reviews and social media channels.
Key Takeaway: Better customer service and relationship should be a top priority for any small business looking to beat competitors and win new customers over, SMB's should invest in quality CRM and customer services tools.
Related: 6 Timeless Strategies That Drive Successful Entrepreneurship
For a small business to strive and win competitors in an industry, the above strategies should be applied to a marketing budget and time frame to measure effectiveness and ROI.
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