Some small business owners wonder how they can compete with a big company in the same industry. Small companies lack the resources to offer as complete of a product offering as the corporate competitors. However, that does not mean a small business can’t succeed.
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Focus on Your Strengths
You don’t need to do everything to complete with big companies, you just need to do something much better. You don’t have to diversify your operations to what you can do better than anyone else.
For example, if you run a manufacturing company, you can try to make a ton of different products, or focus your efforts on a smaller product line that you can do better than any competitor. In this situation, less may be more.
To be more specific, a small, family owned winery has to compete against many large, corporate wineries. Companies like E&J Gallo own many vineyards and create a wide array of wine styles and qualities. A small vineyard owner cannot compete with a company of that scale. Does that mean the small vineyard should give up? Of course not.
Rather than try to create dozens of wines to compete with Gallo, a small vineyard owner should focus on creating a small line of top quality wines. They may be able to make bigger profits and sell wine with higher margins if they focus.
Personal Service
Another strength of small businesses over their larger competitors is customer service. A small business owner can give each customer a personal experience and build better customer relationships.
Each time you work with a customer, you have an opportunity to connect and build a relationship. You can work toward repeat business and make sure your customer is happy and will come back again and again.
Bigger companies do not connect with customers the same way. They struggle to connect with customers and build loyalty for repeat business. While you are small, keep working hard to build a loyal customer base.
End to End Control
Big businesses may have more leverage working with suppliers, but small businesses have a better opportunity to control their product (or service) end to end. Big businesses may outsource a large portion of their operations. A small business can ensure quality throughout the process.
When selling to a customer, this is a big advantage. You can focus your marketing efforts on the high quality of your offering compared to the bigger, corporate competitor.
What Works For You?
How do you compete with big companies in your business? Please share your experiences in the comments.
About Carson Derrow
Hey great blog with loads of great advice! I wrote a blog you might also like called ‘How to Compete, without going Cheap’ which is also aimed at small businesses!