Three Competitive Realities For Small Business And How To Capitalize On Them
Small businesses face a number of realities that can make or break a business. These hurdles can be looked at obstacles or opportunities. That is, if a business is able to overcome these obstacles, it will have some competitive advantages over other small business. This article will explore a number of ways for small business to not only survive, but to prosper.
Doing What You Do Best
One of the most successful tourists shops in Kona, Hawaii is one that has the narrowest product focus. While many oceanfront tourist shops carry the same basic mix of t-shirts and souvenirs, Honu Huts carries a product range exclusively focused on turtle-related products. Instead of competing against tens of other stores selling basically the same product, they have made something truly unique and special. They have established a great brand and have no competition. Their success in retail provides a good example of how to succeed for many other kinds of business.
Small businesses need to identify their core competencies and focus on delivering these products or services to their customers. One big mistake a lot of new businesses make is to try to over-reach and offer a huge range of products or services, many of which they lack experience providing. For example, a big mistake some computer repair companies make is to say they do web design, when, in reality, they have very limited experience with web design. The problem with expanding a “what we do” description to include things that a business has only marginal experience with is becoming unfocused. and delivering expanded offerings professionally or profitably. The core business suffers while the business owner is trying to do things she is marginally able to provide.
Marketing Rules Have Changed
In the old days, a small business would put most of its local advertising dollars in yellow pages and newspaper ads. Marketing beyond the immediate geographical area was difficult, if not impossible.
Today’s reality is that the readership of newspapers is down considerably, and more people use the Internet to find local businesses than the yellow pages. Understanding this monumental shift in how people find their information needs to be at the core of any small business’ marketing plan. The opportunities are substantial.
At the core of any small business’ marketing plan should be a web site that has been designed with online visibility in mind. Most business can do away with expensive printed folders and brochures and focus on providing up-to-date company information online. This 24/7 receptionist/salesperson/technical support person/etc is the best investment a business can make to be found and provide company-related information to anyone at any time. A business can do it alone, but a professional web design and online marketing firm will most likely save a huge amount of time, stress and money. The results will also be much better.
While the most effective mediums for advertising have shifted considerably (i.e, moving from print, TV and radio to online), the essence of marketing a business has not changed. That is, making connections with customers is how a business grow. Many business owners waste tens of hours on social networking sites, but do not spend time doing in-person marketing in their community. Joining the local Chamber of Commerce or service organizations like the Lion’s Club or Rotary, will help to build in-person connections that are far stronger and more profitable than spending all day in front of a computer with the expectation that an email is just as effective as a handshake. It’s not.
Keeping Customers Loyal
A lot of small business fail to capitalize on their biggest asset: their existing customer base. The reality is that there are probably numerous other products or service providers in any given area. That is, everyone is replaceable. That said, when an individual or business decides to do business with another, there is a reason. It might be price, convenience, the product, a personal friendship, an existing contractual relationship or a combination of these.
In today’s hyper-competitive market, small business owners need to identify ways to cement and fortify their relationships with existing customers. It can be as simple as asking. Why do you buy from us? What can we do to ensure that we keep you buying from us? You might discover that your customers buy because of quick delivery and price is not a major concern. Discovering why your customers chose you is essential to keeping them and will most likely guide your efforts to find new customers.
While there are many keys to running a successful small business, focusing on what you do best, understanding modern marketing and keeping customers loyal are, at the their core, essential to establishing and growing a small business. Do these right, and you’ll be well on your way to success.
By: Max Kealoha
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Kona Impact (www.konaimpact.com) is where the top designers and marketing specialists in Hawaii are found. With over 40 years of design, programming and online marketing experience, we are where local businesses look to grow.
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This post was written by admin on August 13, 2009
