Small businesses are still the heart and soul of America. In fact, sixty percent of all U.S. companies today are small businesses with fewer than 50 employees. However, we now live in a world of big name brands. How can small businesses compete against these large businesses and their popular brands? Is it even worth trying? Absolutely! The following provides some bold insights into how small businesses can compete against big name brand businesses in today’s markets.
Small Businesses Facts
What defines a small business? Some say a small business is a company with 500 employees or less. These companies account for more the 99 percent of all U.S. firms. Others believe small businesses are those with fewer than 50 employees. In either case, the success and failure rates are similar.
While two-thirds of small businesses remain successful at two years, half fail within five years. Much of the time, however, small businesses do not fail because of competition from big name brands.
Instead, other factors like the economy, business expenses, and market regulations pose bigger challenges for small businesses. Therefore, it is important for small businesses to be smart about how they approach their markets.
Avoiding Common Mistakes
In many instances, small businesses struggle in a competitive market because of a few specific mistakes. For example, some small businesses fail because they never take the time to create a formal business plan. Business planning helps small businesses be efficient while having a clear direction. Likewise, small businesses can avoid making false assumptions with proper market research and testing. Big name brands certainly take the time for business planning, and small businesses should as well.
Owners of small businesses should also avoid doing too much or too little. Often small business owners feel the need to do everything themselves to ensure success. But this can cause burnout and exhaustion as well as small business failure. Learning to delegate tasks effectively is essential. At the same time, small businesses have obligations that cannot be neglected. Payroll taxes, corporate filings, and other regulatory requirements deserve small business owners’ attention. Whether a company is a small business or a big name brand, there is no getting around these responsibilities.
Strategic Planning – Essential to Small Business Success
Just like big name brands, small businesses can also gain an advantage in the marketplace through strategic planning. Strategic planning provides small businesses with the right business model to excel. This not only includes succeeding against other small businesses but against the big name brands. The following provides key steps of strategic planning that small businesses need to consider.
Know Your Small Business’ Vision, Mission, and Goals
Every owner should have a clear vision and mission for their small business. Likewise, small business goals should be linked to the vision and mission.
Check out the vision, mission statement, and objectives of a few big name brands. You will appreciate the impact this can have on promoting success.
Analyze Your Market and Your Competitive Advantage
Just like big name brands, small businesses need to examine the market in which they compete. What strengths and weaknesses does your small business have? What opportunities and risks exist in the market? What competitive advantage does your small business have compared to the big name brand firms? These answers, as well as insights about your customers and competition will help define the best strategies for your small business.
Prioritize Your Small Business Goals and Make a Plan
You have identified the goals for your small business, and you have a strategy. Now, it’s time to specify which goals are most important to help your small business succeed. Once you know which small business goals are most important, devise a plan accordingly. This is how your small business will be able to compete with the big-name brands as well as other types of businesses.
Assign Tasks and Execute the Plan
While best-laid plans may go awry, these chances are increased for small business that fail to execute. You may not be a big-name brand with dozens of departments that have specific functions, but you can still assign specific tasks of your small business plan to your employees to perform. Learning to delegate is a key to success.
Measure, Evaluate and Adjust
Lastly, small businesses need to measure performance and reassess accordingly. The only thing certain not to change is change itself. But big name brands have to deal with changes as well. By measuring your performance and frequently reevaluating your strategic plan, your small business will be better prepared to excel.
Small Businesses Can Win Against Big Name Brands!
Biggest isn’t always the best, and customers today are trending back to small businesses. Have you noticed the trends in small breweries? By avoiding mistakes and planning your strategy, your small business can enjoy great success. With these recommendations, your small business will be better prepared for any marketplace, including those with big name brands.