To put it plainly, small business is now big business. With roughly 30 million businesses operating in the United States, one surprising statistic is where the job creation is coming from. In the two decades preceding 2013, small businesses were responsible for the creation of more than 60% of new jobs. Seventy-five percent of all these businesses are self-employed, and roughly 50% of small businesses will still be in operation more than five years after opening. How are they managing to keep their heads up when the competition is fierce for a market share?
The Small Business Revolution
Consider all the small businesses that cross your path daily. They are everywhere. Your local coffee shop (assuming you don't crave Starbucks), the dry cleaners on your way to work, a favored boutique close to home, or even the massage therapist you call when the need arises. It takes commitment, labor, and extensive amounts of time to make these places into something truly special. The owners deserve and should, in fact, command respect for their ability to bring their concepts to life and keeping them that way. So why is it there are so many consumers who drive the extra five miles to Rite-Aid for prescription refills or go out of their way to pick up a loaf of bread at Trader Joe's? The reasoning behind this phenomenon is simple - they make all the wrong assumptions. The average consumer assumes they save money by purchasing at large chain store because they have the buying power to offer them a lower price. Many also tend to forget about the benefits small businesses have to offer them, such as specialized promotional coupons, or the exceptional customer service that is often lacking in big business.
Small Business Misconceptions
They have smaller inventory selections - Vendors sell to both small and large businesses. While your local shop may not have the item in their inventory, in most cases, they will go out of their way to contact the vendor and get it for you right away. Considerations like this are often lost in big chain stores.
It is stores who set the prices - For the most part, vendors are the ones who decide the price of their products. This is their MSRP and stores usually have no say in what this is. It is only when items do not sell for long periods they finally are marked down, whether the business is big or small.
There is no diversity in products or options - Large merchants carry exactly the products you expect to see in each of their locations. Local stores will surprise you with the variety of interesting things they have to offer. Bigger stores are more hesitant to allow locally sourced products to sit on their shelves, generally because their corporate division does not allow for deviation from shelving schematics. How many times have you walked to the cash register at a local business and found small displays of products crafted in your community? Examples of these include handcrafted soaps or lotions, baked goods, and pickled harvest vegetables like pickles or beets. These advantages to the customer cannot be found in the majority of larger merchants.
Customer service will not be their focus - Customer service is what matters the most to small business owners. They fight hard to get and keep their customers and have greater flexibility to make real connections. They will intentionally strive to make every customer’s day better, and when they thank a client for their patronage, they mean it. Large companies do not worry about the bottom line if several customers refuse to return due to poor customer service. I stopped going to Wal-Mart about seven years ago for reasons relating to poor customer service. The last time I checked, they had not closed because of it.
Helping them does not help the community - Local business owners are the ones willing to support the efforts of the community. The more money spent locally, the better the outlook for your neighborhood will be. Local charities and causes often receive support from local business owners over consumer giants.
What defines an industry leader?
A dominant position in the market place does not just arrive overnight, and keeping the position once you achieve it takes hard work. Advantages such as customer loyalty, brand recognition, and pricing power are what the industry leaders bring to the table. Small businesses can become industry leaders too. They just need to dominate locally before conquering globally. There are several ways this can be done, and they share equal importance.
Strategic management - A consistently clear vision allows businesses to practice the art of anticipation - what changes will come in public policy, how industry standards may change, and what factors could affect consumer behavior. Seeing the big picture is of the utmost importance. Smaller companies have the advantage in this respect because they can rapidly adjust to changes.
Operational execution - To be a true leader, the simplest things must be done correctly every time. Continuous improvement and investments in training to keep errors at minimal levels, always having products stocked, watching costs, and investments in marketing are examples of what leading companies practice daily.
Innovation - New product development and launches keep businesses in the minds of their customers. The only constant is change, and innovative owners know they must keep ahead of the trends.
War of the Names - Brand vs. Local
Certain brands are instantly recognizable to most people. Heinz Ketchup, Coca Cola, and Oreos come quickly to mind. They are what people reach for, just because they are so familiar and it is what they know. If you take the time to allow your eyes to wander ever so slightly, you may be amazed to find there are dozens of brands of ketchup available. Larger companies manufacture some, but more often, there are local brand options to consider. These smaller businesses are starting to make names for themselves, and are garnering their own chunk of the market. A personal example could make you understand the point I am trying to bring across here - small brands do not always stay small. Diana BBQ sauce was created in a town near where I grew up. As a local product, it was so popular all the local stores carried it. Heinz purchased the company more than 20 years ago, and retail giant Kraft Foods now own them. When walking down almost any store aisle, it is possible to spend 20 minutes or more examining all the local/natural/craft brands offered. Almost every item has similar options. What is it that catches your eye and draws you in? Their choice of labels is what makes all the difference.
Bracing for Competition
Many small business owners feel as if they have no hope of competing effectively with big name brands. Where this may have been true decades ago, today's consumers are well informed, and they are looking for more. Their money needs to stretch farther than ever before, so it is essential to provide solutions that offer what they need at prices they can afford. The biggest growing trends are in the natural and organic markets. People are health conscious not only about what they put into their body but with products they use around the home. They need to feel as if they are somewhat in control of what happens around them. Now questions are being asked by consumers. They want to know what, and they want to know why. Never before have so many people learned to read and understand the nutrition and ingredient labels on the products they are considering for purchase. Industry leaders in retail were slow to catch onto these trends. Small companies began manufacturing and selling small batches of food items, beverages, body care products, and home products. These products caught on like wildfire, almost forcing big businesses to put their own versions on the shelves or risk losing the market completely. There are signs that it may have been too late, however. Many consumers, especially those in the 35 and under age group, will reach for original products put out by the smaller companies. They seem to equate the efforts of conglomerates that have been using chemicals and pesticides in their products for years with a "bad" choice, even when purchasing their natural label items. This adds up to good news for all the smaller companies. They have built up a measure of trust and brand loyalty that will not easily be pried away. The one thing they all have in common is the need to distinguish their products from all the rest.
Setting Them Apart
You could have the best product in the world, but if your label is "blah," potential customers will keep on walking. There needs to be something that will grab their attention and make them take a second look. The saying "you only get one chance to make a first impression" is the cornerstone of the retail world. The impression you choose to make - the face you put out to the world - must be dazzling, a complete showstopper. This does not mean you need to spend every cent of your capital on designing packaging. However, you do need to create stunning labels that set you apart, have high visual appeal, and are cost effective for your business. An excellent example of where this makes a difference is with seasonal, local, or high brand food labels. Many small companies produce food products that scream for consumers to buy them. All that is required to make the sale a done deal is the perfect label. Maple syrup is one product produced in small batches by thousands of small companies. They have a short season, so it is essential they sell as much as possible in the time they have. There is nothing like the taste of pure maple syrup from a local maple tree! Primera printers produce labels of superior quality that are optimal for gourmet foods, cooking sauces, honey, and many other small-batch products.
Marketing Effectively to Win the Battle
One of the biggest mistakes a company can make is viewing marketing as an expense. It should be seen for what it is - an investment in the future of your company. Putting money into a business in the form of equipment is universally seen as an investment. Marketing the products you are going to be selling should be too. The potential benefits of investing in marketing will yield massive returns in the form of new customers clamoring to buy what you are offering. Too many companies fail to see the value in marketing, and often they neglect to funnel funds in that direction, preferring instead to concentrate on hard assets or stock accumulation. Smart owners know that results-oriented marketing is about more than the odd commercial or newspaper advertisement. People routinely use their DVR or streaming devices to avoid the commercials big businesses spend millions of dollars on and print advertising is declining rapidly with the availability of online media. What that leaves is your product itself and the labels used for your brand recognition. Sheeted labels are an excellent choice for printing in-house. They can be used in either ink jet or laser printers and have the durability to withstand heavy handling. Sheeted labels work with the most popular software programs so you can ramp up your design capabilities. You also have the freedom to experiment with a variety of layouts until you find the label that will give your products the "wow" factor that may have been lacking.
Final Thoughts
Your business does not need to have unlimited funds and thousands of employees to beat the market. What it needs is dedication, the refusal to give up, and brand marketing that will set you apart from all the others in your class. Focus on marketing to reach new customer bases. Increase your sales by your willingness to go the extra mile for every client. Work on building brand loyalty. Be flexible and willing to change ahead of the times. When something does not work, adjust until it does. Remembering to keep the big picture in your mind will force focus on where you want to end up - the winner in the brand war.
