3 Ways Small Businesses Can Compete with Big Businesses
It can be difficult for many small businesses to compete with bigger ones in their sector. This is especially true if a large competitor moves into an area that is very close to the smaller store.
The reason why it can be so hard for small businesses to compete with big companies is because larger businesses often have established an economy of scale, so their prices are often lower. Further, they tend to have significantly larger amounts of capital that they can devote to marketing and acquiring customers.
However, even though it can be difficult at times for a small business to compete with a big business, it still can be done. Here are some great ways that small businesses can compete with larger ones.
1. Focus on a niche
Many larger companies are not specialty companies, but instead, are generalists, and offer a wide variety of products. This presents an opportunity for smaller companies to specialize in smaller niches.
Specializing in a smaller niche can position smaller companies as experts in this field. Being known as an expert can be very helpful for advertising reasons. Further, if you are focusing only in one niche, then it can help you to learn all of the angles in this niche, and how to excel in it. This is one way that smaller companies can outdo big businesses.
2. Encourage account registration for your online shoppers
You can do this by periodically displaying a popup ad to viewers on your website, encouraging them to make an account for your company. Getting people to register for an account with your company has several benefits. First, it allows you to add them to your mailing list. If they are on your mailing list, it means that you can advertise to them time and time again.
Second, it means that if they put items in their shopping carts and don’t buy them, those items will stay in the shopping carts. This can increase the chances of them making a purchase the next time they are on the site.
Finally, it makes them feel a closer connection to your company. This can be good for creating customer loyalty.
3. Have great customer service
Oftentimes, big companies are so inundated with customer service calls that they cannot keep up. This means that there may be a very frustrating waiting time when customers are kept on hold, or there may be automated responses, which also can be very aggravating.
Smaller companies, however, usually do not receive anywhere near as many customer service calls. Thus, they can usually have a much easier time with keeping up with them. It may also be easier for smaller companies to have better in-store customer service as well, because their stores tend to be smaller. This can make it is easier for customers to find and speak with customer service people.
In today’s economy, business competition can be fierce. However, smaller companies should not let intense business competition stop them from trying to compete with big business. Just because a company may be bigger does not mean that it will be able to control the entire market share. If you follow these tips, then your small business may just be able to compete extremely well with larger businesses!