You may be up against a big brand, but they don't have the
monopoly on your sector, says Thomas Coles, managing
director of MSM Software.
Starting a business is a daunting prospect in any climate,
particularly when the chosen market is dominated by big brand
players: it can seem as though you are a very small fish in a large
competitive pond.
When university student Mark Zuckerberg had an idea for a social
networking site, few would have believed that his idea could take
on the likes of MySpace, let alone surpass its success. Yet MySpace
has recently announced it is launching a Facebook 'mashup', and the
once dominant site now looks to be latching on to the huge growth
(and now dominance) of Zuckerberg's Facebook, which is now a
billion dollar enterprise.
An inspiring tale for budding entrepreneurs. But ambition isn't
enough to ensure the successful growth of a start-up. So what does
a smaller business need to do to become a serious player in its
market?
1. Focus on your unique selling point
Find a niche in the market that will make your business stand
out against its competitors. Consider why a customer would choose
your business over a competitor's, or what aspect of your largest
competitor's business could be improved upon, and focus your
strategy on it.
2. Carefully define your target customer
Identifying your target audience is crucial to business success:
do this wrong and you will be wasting both time and money on sales
and marketing activities. The narrower the focus or niche you aim
for the easier it will be to give compelling reasons for those
customers to deal with you.
3. Don't undervalue your services
Don't undersell yourself. Just because you're a smaller
business, it doesn't mean the quality of service or expertise is
any less important. Ensure your team is fully aware of the value
you provide so that you can sell your business in the best way
possible.
4. Think value over cost
Some smaller businesses might believe the most effective way to
compete is by offering lower prices. However customers are savvy in
the knowledge now that paying for a better product up front means
long term savings. Remember, your price point sets a
perception in the buyer's mind more quickly than anything else.
5. Customer service is key
One of the pivotal elements of many successful companies is the
friendly customer service. Larger businesses can struggle to
provide the personal touch. For smaller companies this presents a
great opportunity to provide an exemplary service and build a
strong reputation in doing so.
6. Value your team
Successful entrepreneurs know that their own hard work might get
a business going, but pretty soon you have to rely on other people.
Recruit the best people you can afford, and try to keep them happy
and motivated. It's better not to fill a vacancy than to get the
wrong person who might hold your business back.
7. Take a flexible approach
Smaller businesses should take advantage of their ability to be
flexible and dynamic to stay one step ahead of competitors. A small
business can react quickly to changing environments and adapt its
business model to meet customer needs. Larger businesses often have
a long chain of decision makers and cannot adapt so easily.
8. Challenge the norm
Don't be afraid to challenge conventional wisdom. Just
because everyone does it in one way doesn't mean that it is right.
Think outside of the box to challenge your competitors and
yourself. EasyJet is a great example: the company turned the
airline industry on its head with its low-cost approach.
9. Get your website up to scratch
Large companies can often over-complicate their website, which
can put potential customers off. This presents a great opportunity
for smaller businesses: a clear, concise and easy to navigate site
can add credibility to the business, providing an effective
marketing and promotion tool.
10. Make good ideas happen
One of the main threads behind the book Eating the Big
Fish is that challenger brands don't have a monopoly on good
ideas: what is unusual about them is that they make good ideas
happen.