Can a Small Business Compete with Large Organizations - Yes!

When talking to groups of small business people I am often asked a very specific question, usually in an upset tone. Can Small Business Compete Wal-Mart? Not talking about a single retailer, we are actually talking about a large organization. With the recent massive expansion of businesses (and their sophisticated/aggressive approach to marketing and customer service) it is no surprise that this question is on the minds of many small businesses today.

I would like to suggest that what small businesses can suffer is an inferiority complex. Before we even consider the benefits going to us, we automatically give up.

1. Outmaneuver Theme

A small business may see itself as a speedboat that is capable of maneuvering quickly, slowing down or accelerating as needed, and can move around perfectly in a much smaller space than a large business or warship, for example. Could.

2. Get Genuine Personal Attention

The small business can offer genuine, personal attention, greet you by name and hold a brief conversation as soon as you enter their establishment. After all, customer service is more than indiscriminately shouting 'hello' when someone walks into a store. I find this particular activity, which is mostly conducted by large chain stores, to be somewhat disturbing and quite insidious.

3. Choose Between Help and Help Yourself

I prefer to buy from a small business because they are generally more willing, willing and able to help me. It seems like sometimes you have to choose between helping and helping yourself in big chains. Employees at some large organizations are busy stocking shelves and while they can tell where something is, they don't always have the time or expertise to help you make a purchase decision.

4. Education

Education can be an important part of the purchasing business process. It's not always easy to make the right choice when you have multiple products that offer essentially the same benefits. You may need education to select the best product or service for your needs. Small businesses are better suited to offer assistance and in cases of special needs they are the only option for a one-time request or request for unusual or rare products.

5. Tailor Your Product Offering

A small business has the ability to tailor its business product or service selection to its specific business customers. The most popular products or services your specific customer group desires can be deeply stocked. This can be a disadvantage for some large businesses because they can carry a wide range of products but a very shallow depth of choice within a specific product group. Consider that your business may represent a section of an aisle at a big box store. You don't have to worry about the rest of their store and the rest of the products they offer because you're not in those businesses.

6. Training

Makes sure you don't make the same mistakes that some big businesses make. Don't fall into the trap of being too busy providing good service. Unfortunately, it seems that many large businesses have employees to hold stock but not many to help you and in some cases even take your money. Somehow I can't imagine any small business owners allowing a customer to stand in the middle of the floor with their money in their hands and no one to give it to. This unfortunate experience happened to me at one of our well-established Canadian department stores. Forget about the concept of up selling, I couldn't even pay for the one item I came to pick up.

But remember that small does not automatically guarantee good service. It's up to you to train your employees. Your bigger competitors are likely to have training programs. You have an advantage that you can have an informal, real time, on the spot as needed training program for your employees. The trick is to augment any formal group training with a small amount of input when education is needed. If you see something wrong or there's a situation where you can improve your service it can be brought into effect almost immediately compared to your bigger competitor - the battleship, which took months to develop into a more formal structured training program. Can.

7. Don't Compete on Price Alone

Some small businesses charge to it's customer a little more than a larger business competitor but that's okay. There are segments of your target group who are willing to pay a little more to get the additional service. It is up to you to provide the additional service. And make sure they know they're getting added value. There will always be customers looking for the lowest price and they will shop, use your time and expertise, and eventually move on to your larger competitors to make a purchase.

It is your job to identify these people and show them the difference in buying from you as a bigger competitor. Customers are not mind readers. You need to educate them about the benefits of doing business with you. An important part of staff training.

The ideas in this column apply to many business categories such as retail, manufacturing, and industrial or business services. No matter what business you are in, act like a speedboat and outrun the battleship. Go out and run circles around the big business.