How small business can compete with a large enterprise !
No one would deny that a big company with much capital would have a lot of money to support its business activities, such as advertisement,technology,also its personnel would be larger in number. However, as an owner of a small business, you should not be discouraged from these facts. In real life or real combats, it's not always true that the winner is the one with greater resources. If you have read the "Romance of the Three Kingdoms" story you would realize that there are many times that Zhuge Liang used tactics that allowed his small group to compete in the battle with a larger group. The advantage of small business that can be used for winning in the battle is flexibility of the business and creativity of the entrepreneur that can be implemented without having to pass through many levels of administrators like in a large organization.
Today I would like to present some techniques that can let an small business be able to fight with large enterprises as follow.
1. Limit area of the fighting field.
Generally, large companies use strategies that can draw as many customers as possible. They are like a big army with so many soldiers that want to expand its territory (increase number of customers) as much as possible. For example, a sport shop of an international sport equipment company usually has equipments of all kinds of sports for customers to choose, such as football, running, basketball, tennis, golf, etc. If your are small business would like to sell sport equipment too, you should not try to sell all kinds of sport equipment like such that shop. Instead, you should pick the market that you are familiar most. For example, if you are familiar with Thai boxing (Muay Thai) equipment and know people in the boxing business, you should limit the competition area by creating an small business that sells only boxing or Muay Thai equipment. Then you should use your knowledge and experience to respond to requirements of customers as much as possible. With this approach, you have a higher chance of success because large companies may not be familiar with Muay Thai equipment like you. Once you are successful in the market of Muay Thai equipment, then you can expand your business to other markets later.
Besides, it is advisable that an SME should be very prudent in choosing a battle field (business type). For certain business types, large companies have advantages over SME in terms of cost and technology. This is apparent in the case of retail business. At present, small local retail businesses are in a harsh situation because their customers are taken away by giant retail businesses that use their big capital to invest in advertisements and technologies that are efficient in beating small retail businesses. You might have to admit that, if you have your own business as a retail shop, it is very difficult to beat big companies (though it might be possible with very little chance). However, there are many SMEs that can survive without much difficulty such as barber shops or food shops. These businesses do not use high technologies, but use mainly skills of the entrepreneur. It is common to see several food shops that can live on comfortably and can grow from a small shop to a big restaurant because the entrepreneurs were good cooks or had good cooks working for them.
2. Tie customers with impressive services.
This can be recognized as a stratagem of an SME. In operating an SME, the entrepreneur has a high chance to contact closely with customers. Sometimes the entrepreneur provides services to customers himself/herself. For instance, as an owner of a beauty shop, you can use the chance when servicing a customer to talk and enhance familiarity with him/her or provide a better service than the customer's expectation. For example, you notice that a customer who came for washing hair had some lines of hair that are particularly long, your offer to cut those hair lines for free can impress that customer. In addition, an SME entrepreneur can ask for opinions of customers directly, and use those opinions in improving the business.
3. Use weapons that match business type of the SME
It is true that large businesses have a huge budget for supporting their business. However, an SME can have options of weapons to be use appropriately to support the business with only little investment. Some examples of such weapons include:
- Use technology and creativity in advertising the business.
Let me use an example of Lab Dee (Good Sleep) Hotel. This hotel offered one free night to customers who could speak the Thai sentence "Yakyai lai yaklek, yaklek lai yakyai" (A big giant chasing a small giant, a small giant chasing a big giant) fast and repeatedly without mistake. (The promotion has finished already.) You may look at this video clip to see how this strategy works. I believe that anyone who sees this ads must be smiling and remember the hotel's name. (I do not get any advertisement pay from this hotel, but I would not refuse if the hotel offers me a free night.) When people see this ads and get impressed, they will share this video to their friends consecutively. This technique of advertising does not require much cost. However, it can be very efficient. Moreover, if the advertisement is good enough, it might get broadcasted on TV programs. This technique is presently known as Viral Marketing, which employs social network and the Internet for promoting products or services.
- Use beautiful packages and bags for holding the product. The packages should bear a logo and address of the company to provide channels of communication and to let the customer memorize the company's name.
- Distribute free sample of the product to customers to let them test it. The place for such distribution should be where the target customers are likely to present in a great number.
- Attend activities that allow you to meet with many people. Such these activities include religious activities, celebration events, charity events, etc. You can use these activities for building relationship with customers or business partners, and also use the chance for creating a good image for your business.
- Offer souvenirs for customers. Such these items include a pen that has your shop's logo on it.
- Post advertisement on public transportation vehicles or on the community's board. For example, you may post an advertisement at the passenger area of the small bus near your area.
Hope these techniques can give you some good ideas in the business competition.
Strategy for Entrepreneur & Business tips | Entrepreneur ideas, Business tips, How to start business
Today I would like to present some techniques that can let an small business be able to fight with large enterprises as follow.
1. Limit area of the fighting field.
Generally, large companies use strategies that can draw as many customers as possible. They are like a big army with so many soldiers that want to expand its territory (increase number of customers) as much as possible. For example, a sport shop of an international sport equipment company usually has equipments of all kinds of sports for customers to choose, such as football, running, basketball, tennis, golf, etc. If your are small business would like to sell sport equipment too, you should not try to sell all kinds of sport equipment like such that shop. Instead, you should pick the market that you are familiar most. For example, if you are familiar with Thai boxing (Muay Thai) equipment and know people in the boxing business, you should limit the competition area by creating an small business that sells only boxing or Muay Thai equipment. Then you should use your knowledge and experience to respond to requirements of customers as much as possible. With this approach, you have a higher chance of success because large companies may not be familiar with Muay Thai equipment like you. Once you are successful in the market of Muay Thai equipment, then you can expand your business to other markets later.
Besides, it is advisable that an SME should be very prudent in choosing a battle field (business type). For certain business types, large companies have advantages over SME in terms of cost and technology. This is apparent in the case of retail business. At present, small local retail businesses are in a harsh situation because their customers are taken away by giant retail businesses that use their big capital to invest in advertisements and technologies that are efficient in beating small retail businesses. You might have to admit that, if you have your own business as a retail shop, it is very difficult to beat big companies (though it might be possible with very little chance). However, there are many SMEs that can survive without much difficulty such as barber shops or food shops. These businesses do not use high technologies, but use mainly skills of the entrepreneur. It is common to see several food shops that can live on comfortably and can grow from a small shop to a big restaurant because the entrepreneurs were good cooks or had good cooks working for them.
2. Tie customers with impressive services.
This can be recognized as a stratagem of an SME. In operating an SME, the entrepreneur has a high chance to contact closely with customers. Sometimes the entrepreneur provides services to customers himself/herself. For instance, as an owner of a beauty shop, you can use the chance when servicing a customer to talk and enhance familiarity with him/her or provide a better service than the customer's expectation. For example, you notice that a customer who came for washing hair had some lines of hair that are particularly long, your offer to cut those hair lines for free can impress that customer. In addition, an SME entrepreneur can ask for opinions of customers directly, and use those opinions in improving the business.
3. Use weapons that match business type of the SME
It is true that large businesses have a huge budget for supporting their business. However, an SME can have options of weapons to be use appropriately to support the business with only little investment. Some examples of such weapons include:
- Use technology and creativity in advertising the business.
Let me use an example of Lab Dee (Good Sleep) Hotel. This hotel offered one free night to customers who could speak the Thai sentence "Yakyai lai yaklek, yaklek lai yakyai" (A big giant chasing a small giant, a small giant chasing a big giant) fast and repeatedly without mistake. (The promotion has finished already.) You may look at this video clip to see how this strategy works. I believe that anyone who sees this ads must be smiling and remember the hotel's name. (I do not get any advertisement pay from this hotel, but I would not refuse if the hotel offers me a free night.) When people see this ads and get impressed, they will share this video to their friends consecutively. This technique of advertising does not require much cost. However, it can be very efficient. Moreover, if the advertisement is good enough, it might get broadcasted on TV programs. This technique is presently known as Viral Marketing, which employs social network and the Internet for promoting products or services.
- Use beautiful packages and bags for holding the product. The packages should bear a logo and address of the company to provide channels of communication and to let the customer memorize the company's name.
- Distribute free sample of the product to customers to let them test it. The place for such distribution should be where the target customers are likely to present in a great number.
- Attend activities that allow you to meet with many people. Such these activities include religious activities, celebration events, charity events, etc. You can use these activities for building relationship with customers or business partners, and also use the chance for creating a good image for your business.
- Offer souvenirs for customers. Such these items include a pen that has your shop's logo on it.
- Post advertisement on public transportation vehicles or on the community's board. For example, you may post an advertisement at the passenger area of the small bus near your area.
Hope these techniques can give you some good ideas in the business competition.
Strategy for Entrepreneur & Business tips | Entrepreneur ideas, Business tips, How to start business