When you’re starting a business, it’s likely that other much larger companies have already started marketing the same kind of products you’re selling. This means that you’ll be competing against big names in the industry, which can be daunting.
But, you should know that despite being a small company, you have certain advantages over larger businesses.
Personal customer service
Being small means that you’ll have to deal with your customers yourself, and this can be beneficial to you. If you’re able to build a relationship with your customers, they’re more likely to patronize your company than other large corporations.
Even if you don’t have high-tech programs like customer experience management tools that larger companies use, you still have an edge over them. This is because you have a personal relationship with your customers.
Another advantage of being a small business is that you can easily adjust your company’s practices, methods, and systems that aren’t working. Or, if a customer complains about one of your systems, for example, your customer service department, you can fix it immediately.
For large companies, it will take them some time to make these adjustments because it might have a domino effect that could affect other departments. So, they need to figure out first what the possible effects could be.
Easier to dominate a niche
Most large businesses don’t bother with niche marketing because they need to sell their products to the widest range of customers. Since their operations are big, their expenses are huge, too. And to compensate for their expenses, they need to sell as many products as they can.
This means they can’t concentrate on a niche market because it’s too focused on a small percentage of customers. For smaller businesses, this isn’t the case. You can find a niche and dominate that market because your operation is small and your expenses aren’t as big.
Easier to innovate
As a small company, you can also accommodate innovative ideas or products much faster and easier. Whereas large companies need to test-drive new ideas and products first before launching then, smaller businesses don’t need to go through all the red tape in order to launch a product or an idea.
Take, for example, 7-Eleven, the leading company in the convenience store industry with over 60,000 stores worldwide. If a franchisee proposes a food item, the company won’t pick up the product right away.
They have to check that product first and figure out if it has any value to their customers. They will meet with their test customers to see if they approve of it. They will also check with their other departments to see if this proposed product will make profits.
By the time they’re done examining the proposed product, half a year has already passed. But if you’re running a small company, there’s less red tape and more adventurous people, which means that any proposed item can be launched after only a week of deliberation.
Having a small business doesn’t necessarily mean that you’re at a disadvantage when you’re competing against larger companies. It only means that you need to look harder for ways to compete with the big names. Remember that many small companies do come out on top when they pit themselves against big corporations.