Big Competition
The number of small and home-based businesses is ever increasing and competition for business is coming from an unexpected place, big business. Small businesses are now facing fierce rivalry from super malls, discount department stores and franchise operators. Small business owners have become fearful for the survival of their firms, particularly if their business comes into direct competition with larger firms. While many small businesses cannot compete with big businesses head on, they can still be successful. Some small businesses have learned how to grow and thrive even in the face of stiff competition.
To be able to compete with bigger businesses, the small business owner needs to know and understand the competition. Visiting their stores regularly will give you an idea about how their business is being run and a few new tips and ideas about how to market your own business. Big businesses constantly change, so take advantage of this by researching what is hot in the market and what consumers are buying. Rather than taking a ‘wait-and-see’ position, get proactive and get out into the market to figure your competition out. Do not think that getting involved in a price war will improve your business, 75% of all consumers say that they buy because of value and not price.
The following are 10 ways your small business can compete with big businesses and stay on top:
- Provide excellent customer service. It is important that you
treat your customers well. As a small business owner you have
the advantage of being able to provide one-on-one customer care.
Remember that every phone call is important and treat your customers
with the respect they deserve. Develop loyalty programs that offer
special discounts and freebies for repeat or frequent purchases.
Your loyalty program must have a solid foundation and have the
customers best interest at heart.
- Collaborate. It is difficult for any small business to take
a big business head on due to the lack of funds and resources.
You can form some sort of alliance or partnership by collaborating
with other small firms or rivals. For example, if you run a small
auto repair business you can collaborate with a car wash business
and offer discounted services if customers visit the car wash.
- Develop a niche. Developing a niche is the ideal way for a small
business to stay on top. By offering exclusive services you will
succeed in attracting more customers to your small business.
- Offer employee benefits. Providing your employees with more
benefits and better salaries, enables you to run your business
better because a satisfied employee translates into satisfied
customers who are well served.
- Go online. Taking your business online levels the playing field.
The internet has made it possible for the aggressive entrepreneur
to expand a business right alongside the largest corporations
in the world.
- Make use of the latest technology. Using the latest technological
innovations helps you compete with big businesses. Computerizing
your data allows for more efficient and professional customer
invoicing, pricing, and inventory tracking. Most of these tools
are easily affordable, so you can computerize you entire set up
without denting your wallet.
- Offer discounts. Discounts are a great way to lure customers
to your store. Offering monthly clearance sales and special discount
offers can attract more customers. The goal is to entice customers
with irresistible offers, so that they visit your business as
potential prospects.
- Be professional. Professionalism is key to the success of any
business. Creating a good image is vital for small firms as customers
and clients need to know that their business is taken seriously.
Professionalism should be seen in the way you dress, the way your
stationery is designed, and every other aspect of your business.
Being professional in small matters also helps to build consumer
confidence.
- Be unique and distinctive. By being distinct and unique, you
can attract more people to you business. Offering custom designed
items for sale creates an image of exclusivity. Exclusive, original
items grab the attention of the public.
- Know your competition. Study them carefully to understand their strengths and weaknesses. You may not be able to compete with a big business directly, but you can at least know how to get around them and make a tidy profit.

