startup

Small Business is very precious. Entrepreneur’s dreams and their memories are connected with small business. Few companies have uniqueness in the product itself and few may not. We always have space to start new business in few sectors like food, apparels and so on, though market is dominated by big players. Consequently, how can you keep a competitive edge against the big branded companies?

Don’t be scared as a small business owner. Anyone can do business, Business is not the profession for few people. Ask yourself one quick questions: Today’s big companies were small some time ago. However, how did they survive? What made them to became big? Here are my tips for small business to compete with big brands.

Don’t be scared about big budgets:

Remember one basic thing in business: Revenue and profit margins will be calculated based on the investment, not on the size of the company. Consequently, big business needs big investment, revenue and profits also should be big. Being small business owner your investment is less and expectation of revenue should also be lesser than big brands.

I would say start focusing on quality rather than quantity. Eventually, business will grow regardless of competition. Target small quality of right customers and convince them eventually customer base will be increased.

Intensive care for customers:

I believe everyone knows and scares about ICU (Intensive care unit), the word ‘intense’ itself describes much more than normal.

If you own a business eventually, you take enough care for customer because business and profit margin both are yours . However, when the organization grows you can’t handle on your own. Eventually, core team will be on boarded, customer care may not be as good as you. Gradually customer care is going to be taken care with some tools by common employees. Apparently, the quality of customer care will be reduced. Imagine how a big brand can take care of customers more than you.

Small business only can provide intensive care for customers.

Consider collaborations:

Though you have quality product being a small business owner, building brand and organization are key for sales. Collaborating with an established brand is always advisable to introduce yourself. Big business has bigger customer base. Consequently, it is going to be bonus for you to let customers know about you.

Evaluate strength and weakness:

Business is all about

1. Fulfilling customer needs.
2. Developing quality product.
3. Making profit.
4. Facing competitors.

1,2,3 bullet points are in your hands to take care but how about ‘facing competitors’ ? If the competitor is much bigger than you eventually, the strategy should be good enough to handle . How can you develop a strategy? Apparently, competitor’s strength and weakness are the feed for business strategy. I would say focusing on weakness rather than strength will be good to gain customer’s confidence in the initial days of business.

Realize cost advantage for small business:

Being a small business owner you always have cost advantage than bigger brand. Product can be developed much lesser then big ones because

Corporate have lot of burden to meet. As long as the company grows tax slab will change. Human resource cost, operations cost will also be increased. Operations cost can be a big differentiation between big and small business. Consequently, make use of the advantage and bring down product cost for customers.

You can always go for a loan. I know how difficult is getting a loan and how big the process is.

Fundera is offering loan for small business loan at lowest rate of interest. The best part is you can check eligibility online.

Focus on policies which are barriers for big players:

It’s a long journey  from a small business to grow as corporate. Eventually, few policies and processes will be incorporated as part of journey based on demand. Majority of the times policies are big barriers to make decisions. It is time consuming and sometimes effects cost either. Consequently, big advantage for small business is very policies to follow. Quick decisions make a lot of difference in business. Take it as another advantage to keep a competitive edge against the big companies.

Unique selling proposition:

USP doesn’t mean only about uniqueness of the product, it could be unique way of providing service, taking care of customer, incorporating market needs, way of execution, market penetration, brand building etc. Though it is big business, USP can stand you out from crowd.

Don’t forget to think as customer before think as an entrepreneur,

because you should be the first customer to evaluate your product.

Narasimha Mohan

 Recommended Article:

6 Potential ways to generate successful startup idea

The post 5 Tips for small business to compete with big brands appeared first on Saranmok.