Small business owners often face numerous challenges when trying to grow their businesses. One of the core challenges is; competition from large business owners. These large business owners, since they purchase in bulk can afford to sell below the standard price in order to attract more customers.
What usually happens is that when buyers notice these larger businesses are selling below the normal cost price, they abandon and stop patronizing small businesses that are selling at a higher price, to shop from the cheaper, larger businesses. In the long run, small business owners, in a bid to attract more customers, may feel pressured to reduce the prices of goods and services, which can affect their capital. Some, unable to compete with these large business owners and unwilling to lose more money, close down their businesses to look for other work. Sadly, a lot of small businesses have failed and closed for this particular reason.
but, despite these challenges, small business owners still have a chance to stand out, grow, and survive in a competitive market following these two tips.
One of the best ways to grow and survive in an ever-competitive market environment is to focus on a particular niche and aim at offering excellent services in that niche. Large companies often target larger audiences because they have the capacity to satisfy the wants and needs of such audiences. For example, a large business organization may offer numerous services and sell different kinds and brands of goods and products easily because they have the means, labor, and capital to do so. It is not the same case with small business owners, who often have little capital and struggles to grow an audience or even meet their demands.
Few days ago, I had a conversation with one of my friends, a small business owner who is into fashion and designing. Part of the conversation was about the best ways to grow and stand out in a competitive business area. During the discussion, he told seven that, though he is a fashion designer, he focuses mainly on male and female shirts, trousers, and native wear; he does not design or sew suits, gowns, or other types of wear. Being curious, I asked the reason behind his choice, and he said,
"In tailoring work, a jack of all threads is considered a master of none; just focus on one and be good at it. I stay in an environment where there are many fashion designers, everyone has a niche and area of focus, and there are people whose work is to design and sew suits. If you sew everything over here, it would be hard for you to receive work... Tailoring work is a division of labor."
That is to say, as a business trying to grow, it is always best to focus on a particular aspect and aim to be good, if not perfect, at that area. When small businesses focus on delivering a particular service, it will help them work towards delivering those services excellently instead of trying to become good in many areas and, at the end, becoming jacks of many trades and masters of none.
Additionally, prioritizing customers and having a good customer-entrepreneur relationship is another important way to grow a small business. Customers are fifty percent contributors of the growth of a business. They are the ones patronizing businesses; without buyers, a business cannot succeed. One of the ways to prioritize customers is to listen to, and address their complaints quickly. Even though some customers may be difficult to handle, and often lacks understanding, it is necessary for the success of the business to address their complaints rather than ignoring them.
Customers are quick to call out businesses that refuse to address their complaints. Imagine one customer coming online to make a public complaint against a business. Often, they may exaggerate details to draw more attention to their issue. Such actions can be harmful to the growth of such business and may attract the attention of other customers who feel they have been treated unfairly by the same business. These people, no doubt will support the complaining customer by narrating their own bad experiences as well.
When more than two or three people leave bad reviews about a business, it can scare away potential customers, leading to a loss of sales.
Similarly, small businesses can offer additional services and a little act of kindness to their customers as a way of thanking them for their patronage. Most importantly, being honest with customers when it comes to money issues and not having to lie about the prices of products or services or even the authenticity of a product will help a small business grow and survive.
In essence, business owners usually find it difficult to sustain their businesses due to competition from larger business organizations that have a greater advantage over them. However, by focusing on a particular niche, prioritizing customers, and being honest in dealing with them, a small business owner can become successful and thrive despite the numerous challenges.
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