Business is a constant battle of David vs. Goliath. In every single industry I’ve consulted in, there are small businesses desperately fighting to stand out in a landscape dominated by a few huge players.
This is probably happening to you – whether you care to admit it or not. (It’s certainly happened to me in every business I’ve owned to date!)
Standing out in an industry full of giants takes courage, individuality and a bit of savvy! It’s a question I get asked about quite a bit – so here’s an overview of four specific strategies I advise my clients to follow when they fear being crushed by giant competitors…
Don’t Be Intimidated
Every brand and company we recognize today started off small at some point. Nobody builds a million dollar business or brand overnight – even the big guys. If you know you’ve got a product or service that helps people achieve something they want, don’t be intimidated by the big players in your market.
Have confidence in your idea, the courage to tell people HOW you’re better than the competition, and the persistence to see it through. Often it’s a tough battle, but boy is it worth it!
Be an Individual
Nobody has ever set the world on fire with a copycat business. Sure, they exist… and some even make money. But profitably copying an established competitor requires pockets deeper than yours or mine… and it’s a surefire route to ruin for entrepreneurs.
When you’re going up against giant brands and corporations, find the characteristics of your business that make you different from the giants, and focus on them.
Do you offer a free extended guarantee? 24/7 human customer service? The fastest delivery? Free setup? A generous loyalty program? Do you have specialist industry knowledge? Do you have high ethical standards or only use local produce?
There’s tons of ideas right there that will set you apart from your bigger competitors… and there’s lots more out there when you start to really look for them.
You almost certainly can’t compete on price, but you CAN compete on value.
Focus on Your Customers
Absolutely everyone has experienced poor customer service in the past, so take those experiences and decide how you’ll do it differently. Small businesses are in a MUCH better position to offer superior customer service, so take advantage of that.
Not only will better service keep your customers coming back for more – it’ll also encourage them to spread the word about your company for free. This kind of endorsement is the BEST kind of advertising… not only because it’s free, but because people TRUST it much more than other forms of marketing.
When you’re building a business, you need every bit of free publicity you can get.
BONUS TIP: It’s not just about responding to customer inquiries. What do you do to truly delight your customers? I send my best customers gifts and surprises, and I take a genuine interest in their lives and businesses. I love helping small businesses get bigger, so learning all about my customers is fascinating to me. Delighting your customers shouldn’t be a chore for you either.
Doing MORE for your customer than they expect is the very BEST way to generate word of mouth. And social media has put word of mouth on steroids!
Dance Like a Butterfly, Sting Like a Bee!
Small companies have two things that no large corporations do: speed and flexibility. You’re “on the ground” in your business and can spot changes in your marketplace way before they filter up the decision-making tree of Goliath Inc!
While they’re thinking about opening a new department or hiring an ad agency to pitch for the marketing, you can have your new product or service out there and selling… generating revenue, goodwill and a great reputation for you.
Fortunes have been made in the time it takes large corporations to change direction. Use your agility to your advantage.
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Small, well organized and determined businesses can be MUCH more profitable than their lumbering giant counterparts.
Many small businesses I speak to think it’s hopeless entering a market dominated by huge competitors, but that’s simply not true. Don’t forget, the existence of large competitors indicates there’s a huge desire for your product or service.
Implement the strategies above and you’ll soon be stealing their market share!
James
Photo Credit: luna junkie
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Article by James T Noble
James makes small businesses bigger. He's previously worked with some of the world's largest brands and companies to market their products and services online - including Disney, Microsoft, 20th Century Fox, Virgin, Coca Cola, MTV and many others. Read more about James...
{ 36 comments… read them below or add one }
thanks James, this post was a good reminder to not even worry about larger companies taking smaller companies market share away…the emphiasis here was on us, the smaller companies grabbing the opportunities while the big guys are muddled down.
Exactly… speed and flexibility!
You strike a chord here James.
One thing about big corporation is that the mission and values of the founder often get lost in the sea of red tapes. Small businesses that genuinely want to add value can be a very attractive alternative to the friends of David. I am all for being a Trusted Collaborator/Partner. Like the dancing butterfly bit too!
Thanks Louisa!
I agree with you – but only to a certain point. I have tried to run a company – small business (around 15 employed people) and unfortunately it was a disaster. What killed my company Was that ‘Goliath’s’ could afford to go lower on prices and my tiny cleaning/carer company was just not a competition to ones that were in sort of a ‘union’.
What annoyed me the most- they raised their prices a week after I was called a bancrupt ( but once again- they could afford it..)
Marta,
what you need to do is find a way to differentiate yourself and (most importantly) DEMONSTRATE to your customers how you’re different.
For example, are you better than the big companies at:
– attention to detail
– arriving on time
– friendly staff
– care taken whilst on-site
– etc.
James
Btw- and it doesn’t matter how great you are, how good ideas you got… Money is all that matter- and the only thing I hope for is simple common sense of people- that they will choose smaller businesses that actually CARE about their customers.
Nice article but the fact is it’s impossible to compete against corporations :(
It’s difficult, but it’s not impossible!
You make some excellent points to encourage small businesses and let them know there is plenty of space for the to thrive successfully among the giants. i am particularly intimate with the characteristic of small business being able to go from decision to implementation at light speed compared to large corporations. I refer it to little boat compared to ocean liner. The little boat can turn around and be on its way whie its a major undertaking of a big ship.
I recently started a small business- thanks for reminding me of my strengths, and what I have that “goliaths” in my industry don’t. Just today I was meeting with a client, and felt insufficient for their needs – but no longer!
I love the section on customer service. All to often big businesses lose sight of what got them there. Customers are your bread and butter. I have worked for many small businesses and customer service is always the top priority. Great article!!
Big corporations think they can get away with a lot, But you should learn more about law and business if you are going up against giants like these.
Great article. I am a small business owner and it gave me the refocus I needed to succeed in my own business. Thank you.
Small business owners can build on their strength on providing excellent customer service to their clients where corporation normally lacking
this blog has been very helpful right now! I just started my own cleaning business and now I have some more things to go on! I have been needed to advise like this on how to get my company out there more!
I think smaller businesses do better in the long run because they can track progress easier and satisfy their customers better.
Thank you for your tips and advices. I am currently a student major in economics but I have a plan to open my own business. You’re right, every business has some giants, but fear will just bring to us failure. Maybe one day I will be one of the giants? LOL.
very good points, being a small start up company can be intimidating in a big pond full of big fish. but as you say, individuality is the greatest thing a small start up has on its side and can be enough to give them an edge. a very valid point about the speed of which they can adapt to trends as well, i guess most people often forget about that. where it takes times for larger companys to implement changes with all the meetings and red tape, a smaller business can react instantly which is great.
It is surprising how often you can actually compete on price with branded products, supermarkets take around a 40% gross profit mark up and rely on the basics ranges to pull in price sensitive customers but if you put up a big sing saying Hovis bread £1 most people will compare that to the cost of Hovis next door without stopping to consider weather basics bread (47p) would do.
One of the mistakes I made running newsagents was competing too strongly on price, just because you can sell 25% below what the supermarket is willing to sell for doesn’t mean you should, 10% will normally do.
It is defiantly true about large businesses being inflexible for the most part; it was recently in the news that Tesco have their individual line prices dictated from head office!
There are a few big businesses which break this rule, I like Greggs which launched a sandwich deal for £2.99 right after Sainsbury’s started their £3 offer just across the street and also GlaxoSmithKline which operates like a string of biotech companies with head office just making decisions on where to allocate resources, they refer to themselves as the GSK group of companies.
Actually i think its hard to compete against big companies and corporations
it takes money, time and labor :)
so if you want to go big you got to take it step by step!
you ain’t going to be at the top in one year no it might take several years depends on how much you work and the quality of your service or product.
One should never be intimidated by a huge corporation. You will be surprise to know that many people love to be catered to by the small business types. Many customers feel like you really care and you really have an interest in their wants and needs. Many smaller businesses will be born due to a rough economy.
Not to worry about those big corporations. There are so many people who love to be catered to by the small business types. I even love it myself.
Very informative Thanks
I am about to start out on running my own business too. It is important to realise that when you start out you will feel like, a by all means, be a David. But I am not overly concerned by large corporations.
I like the your advice to focus on your customers. I found that one big advantage I have as a small business owner is that I can accommodate my customers better than a large corporation because I have fewer rules and regulations that have to be followed. If a customer needs a change to be made that is not usually available, I can make the change without having to get “corporate” approval. By being able to respond quickly to my customer’s needs, I gain an advantage over the big boys.
Some very interesting points there. I think the point about large corporations being inflexible is so true. They are also overtly greedy, to the point that they blatantly don’t care about customer service and what people think of them – always assuming that their size will guarantee continued profits. Unfortunately that assumption is often right, but that shouldn’t stop smaller companies taking advantage of their arrogance. Being responsive to customers (and employees’) needs is a rare quality in our faceless, corporate world and one that deserves to be rewarded.
I think you have hit the nail(s) on the head. Individuality and focus on the customer are the ones that I think are the most important. If you can offer your customer something different and make him feel important to you, you have already risen above any competition from the chains. Whatever they may say, they are all much of a muchness, and they certainly don’t focus on the customer.
great tips and advice that will give the little guy a chance to compete with the big guy! alot of people are starting to turn to alternatives and being creative and quick is one way to overcome big corporations. thanks much!
I think competing against a big company can be hard, but also it can be easier in certain ways. For starters you don’t have to deal with corporate politics.
It is so true that small business has to cater to the customer.I realize that now that I have been through a failed small business venture.The customer is always right as they say.
people love to be catered to by the small business types. Many customers feel like you really care
This was honestly some great advice for small businesses/owners. I think you should do some small seminars for small business owners, this would be very helpful to them!
Remember birthdays and anniversaries and such and send cards or some other recognition. Big businesses don’t do all that.
A lot of good points – I especially agree with the benefits of small business are the customer service. In this economy it’s important to have more things that make us “Davids” more special and I think customer service can, and does, overcome some of the weaknesses of smaller businesses. Thank goodness for Yelp in helping us small guys out.
Very good advice with many good points. My website is herbal teas for natural health. I’m in my sixties and still working in administration for a small business. I will be expanding my business to natural and alternative health care options, giving people a one on one service, one location for all their natural needs. I want to make natural health care an awareness that its an option to conventional/work with. Empathy is what customer service is missing in big businesses, and that is what a small business can offer!
Thanks for your comment Francine – and good luck with your business. Do subscribe for updates (top-right of this page) and let me know if there’s anything we can help you with.
James