Larger businesses often have many advantages. Tons of locations, customer loyalty, brand recognition, cheaper bulk purchases from suppliers, bigger budgets… you name it.
As a small business owner, how do you stand your ground against larger competitors – let alone gain an edge? Let’s get into my top proven strategies to successfully compete with the big guys.
At CSI Accounting & Payroll, we’ve provided expert advice via our monthly accounting service for nearly 60 years. That means we’ve talked to thousands of small business owners about gaining a competitive edge, answering questions like:
- Should I even try to compete with larger businesses, or should I provide something different?
- What are the top tips you can give me to compete with larger businesses?
- Can a monthly accountant give me better business advice than I can find online?
Competing vs. Differentiating: What’s Best for You?
So, can smaller businesses truly compete with larger ones, or is it a waste of time and effort? Would you be better off just finding a niche? It depends on the type of business you own.
For retail, it’s extremely difficult to offer the same types of products that the big guys do, so I say it’s better to find a niche.
However, for services, you can compete if you hit the areas where the bigger businesses fall short. That means offering exceptional customer service and being very transparent (including openly talking about your pricing).
Ultimately, it takes more than just pricing your products or services as low as possible. You need to be unique whenever possible and care about your customers.
6 Tips to Compete With Bigger Companies
Now, as promised, let’s get into my top six tips for small businesses that are looking to compete with larger businesses. They include:
- Offer the best customer service.
- Find a niche focus.
- Establish a strong online presence.
- Leverage technology.
- Appeal to customer values.
- Build local brand recognition and reputation.
1.) Customer Service
This is one of the biggest things that large businesses fail at. Some even grow to the point where their customer service is scripted or outsourced, whereas you’re able to maintain a personal touch. Lean into that!
I like to emphasize periodic customer service training for all staff members. (It shouldn’t just be done during their first week and then never touched on again.)
You can also incentivize your staff to happily provide great service by focusing on fair pay and benefits. Some very small businesses may not have the budget for this, but I believe it makes all the difference if you can afford it.
2.) Niche Focus
When I talk about “niche focus”, it can be interpreted in a couple of different ways.
I mentioned that retail businesses may want to carry a niche inventory. Of course, service-based businesses can also add a niche service area on top of the essentials.
The other niche focus can be your target market. Instead of advertising on all channels to every person like some big businesses do, try something new:
- Which demographic is your biggest customer (or has the potential to be)?
- How can you best reach them?
- What unique benefits do you provide that would appeal to them the most?
3.) Online Presence
Most people associate online presence with social media. (After all, digital ads can be very costly.) While social media can be beneficial, we can’t all go viral! Consistency is key, even if you don’t see consistent results.
You also need to ensure your website addresses your customers’ basic questions. They may include:
- What do you offer? What makes it special? Is it customizable? Do they need to order in advance?
- Who do you serve?
- Where are your locations?
- When are you open or available? How do holidays affect this?
- What does your pricing look like? Does it vary at all, and what factors go into that?
- How can they contact you? How quickly will you get back to them?
My biggest tip in this area is to focus on reviews. As a small business, you have the privilege of asking for reviews on a more personal basis. The more reviews you get (and respond to), the more frequently search engines will show your business. Focus on Google, Yelp, Facebook, and other popular review sites.
This can also go back to my point about customer service. As you read and respond to reviews, you can easily identify areas that need to change. After all, small businesses can pivot more easily than large businesses can. Use this feedback to improve your customer satisfaction!
4.) Technology
Leveraging technology is the least you can do if you want to stay in the competition – and whatever you do, be sure to keep up as technology advances.
If you can use technology to improve convenience, do it – especially if it’s an industry norm. For example, even though paper checks still exist, CSI needs to use technology to offer direct deposit or many clients would go elsewhere. You could provide things like:
- Online booking.
- Mobile payment options.
- Automated appointment reminders.
Technology can also attract more customers and encourage repeat business. Examples include:
- Social media.
- Digital ads.
- Email or SMS (text) marketing automation.
- Customer relationship management (CRM) software.
5.) Customer Values
This one requires some discretion. Think about major grocery chains: Target and Wal-Mart. Target appeals to liberal customers, and Wal-Mart appeals to conservative customers.
Strong political statements can draw in passionate crowds, but they alienate others. You want to avoid this.
Fortunately, there are some values that you can appeal to that aren’t too politically affiliated. They can include:
- “Shop small”, “Shop local”, & “Made in America”.
- “Veteran-owned”, “Women-owned”, “Minority-owned”, “Employee-owned”, & “Family-owned”.
- Recycling or doing other environmentally friendly business.
- Donating to charity.
6.) Local Brand & Reputation
My final tip is to focus on your local community. Small businesses hold most of their weight in their immediate area.
You can make sure your local target market knows you by participating in the community. For example, you can:
- Attend or become a sponsor for local events.
- Donate to or volunteer at local charities.
- Teach community classes related to what you offer.
- Use local hashtags and pin your location on social media.
It’s also mutually beneficial to collaborate with other local small businesses. You might meet them at a business group or just walk up to the business next door. Examples of collaborations include:
- A coffee shop features pastries from a local bakery. The bakery sells the coffee shop’s signature brew.
- An auto repair shop hands out coupons for a local car wash. The car wash also hands out coupons for the repair shop.
- A restaurant has a local brewery’s beers on tap. The brewery welcomes the restaurant’s food truck.
If you own two different types of businesses, you may even be able to commingle them in the same way.
Why Advice From a Monthly Accountant Beats Generic Tips
I know this is just one of many articles online about how to compete with larger businesses. However, it’s important to point out that advice posted online is generic – and it isn’t given out by someone who knows your business.
When you partner with a year-round service like monthly accounting, you get proactive advice that’s customized to your business. Your monthly accountant knows your business like the back of their hand, and they can tell you how certain business decisions can affect you specifically.
It could make all the difference!
Get Customized Advice From a Pro!
Now that you know how to compete with larger businesses and how a monthly accountant can provide even more customized advice, are you ready to check out monthly accounting services?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
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