Six Ways that a Small Business can take Market Share from a Large Business
Many small businesses think they cannot compete with large corporations. Surprisingly, this is very untrue. With the right strategy, a small business can not only compete with, but take market share from a larger corporation.
Here are the six ways that a small business can thrive in a market run by corporations::
- Haste; Small businesses can innovate and make changes quicker than large corporations
- Intimacy; Creating Personal Relationships Will Build your Business
- Size; smaller is better
- Budget; Tight budgets are a good thing
- Risk; Large businesses can’t take the level of risk a small business can
- Values; You can stay on Mission over Profit
1. Small Businesses can Innovate and Make Changes Quicker than Large Corporations:
Large corporations have a lot of bureaucracy involved with them. Decisions take time to implement, whereas with a smaller business, changes can be made quicker and with less resources. This strength can be used to take advantage of current trends. A relevant example is the ‘buy now pay later’ trend, which is currently taking over the credit card world. As a small business, implementation of such a service can reduce credit card fees and allow your company to remain up to date. Moreover, with these changes, focus on attracting new clients who are looking to buy this type of service. Being able to make quick decisions and move fast can poach the client base from large corporations, and help develop your position within the market.
2. Building Personal Relationships Will Build your Business:
While scale can seem like an asset to larger companies, it inevitably removes the intimacy between businesses and their clients. As such, an underrated aspect of smaller companies is the ability to meet clients in person and build relationships. The use of social media to create personal relationships is highly effective as well, and can further highlight the disparity between small and large corporations. By capitalizing on this valuable aspect of scale, networking becomes more personable, and more of the market can be seized.
3. Smaller is Better
Smaller, more efficient workforces can generate better results than large cumbersome teams. Through the ability to work closely with your team, spontaneity becomes more prevalent.
Communication is a key factor of this; it is far easier for an employee to walk across the hall and speak to someone about an idea rather than work out a meeting with a colleague in a different time zone. Large corporations have to endure scheduling issues and navigate hierarchies, hindering the ability for internal communication and collaboration.
4. Tight Budgets are a Good Thing
When confined to a smaller budget, small-business owners are forced to find what works, instead of hoping for results by expending large amounts of money and resources. Large corporations do have effective budgets but they can be impersonal. As a small business owner, you need to be specific and budget-conscious, and deliberate action can help expand your presence on social media, which will lead to more personal relationships with clients.
5. Large Businesses Can’t Take the Level of Risk a Small Business can.
In order to enact even the smallest of changes, a large business must maneuver through a board of directors, and keep in mind the interests of shareholders. Contrastingly, small businesses can shoot for the stars and hope for the best. The only person that a small business will fail is its own business owner, making the risk limited to a single individual.
6. You can stay on ‘Mission over Profit’
Large corporations must prioritize their shareholders over their mission. Oppositely, small businesses can focus on their mission over profits and hope to reach new clients that are aligned with those goals. Targeting mission over profit in the long run will help your business grow as you will continually garner more of a position in the market inspired simply by alignment with people and your mission.
Though each of these elements are important advantages that a small business can have over their incorporated counterparts, the theme remains simple; picking your clients over profit is the most important factor for a small business when trying to establish market share. Finding what strategies work and focusing on their effective implementation will serve you better—you do not need to be all things to everyone. Stick to the mission, align your mission to your clients, make relationships with them and keep it personal. You will succeed.