Think big businesses are the only ones able to make serious money in America? Do you think the Fortune 500 companies are too big to fail? Nothing has proven those theories more wrong than the past two years in American business. Big businesses are slow to innovate, have extreme overhead costs as well as a high cost of maintaining their brand image within the marketplace. Not to mention that such a complex organization has so many chances for things to go horribly wrong (from a public relations standpoint), that small business in many cases actually have the upper hand.
While it is true that 50% of small businesses fail within the first year of starting up, your business does not have to just be another statistic. In fact, 2010 may prove to be your best year yet and lead you into prosperous growth and sustainability. So what is going to make this year so much better than the last? There are four main principles, that if followed will make it all come together.
1. Innovation
Easily the biggest advantage that small businesses have over their larger counterparts is the ability to innovate at an incredible speed. When small firms see an opportunity or are able to find something that works they can capitalize on such events much quicker than the larger organizations can due to policies, chain of command etc. If you are a small business who can compound this effect over a period of time, your products and/or services will be so much more advanced than your competitors that a customer would have no logical choice than to choose you.
2. Relationships
Small business lives and dies off of its tightly knit customer base. Customers know this and appreciate it when firms/startups are able to provide stellar customer services that the big guys just don’t care about. Are you an unhappy customer who pays (i.e) Verizon thousands of dollars per year? It is doubtful that such an organization would be able to make any substantial leeway to earn your business. However, take that same amount of revenue in contrast with a small firm and your patronage makes up a much larger percentage of their income… you can bet they will listen.
3. Social Media
Want to get a quick answer to your question about how to get in touch with a representative at a company? Have you tried their Twitter account? Chances are that if you hit up Dell’s Twitter account you will get limited to no responses… Have you tried your local startup? I bet they reply right from their smartphone. Small firms are more connected and foster the warm feelings in which customers need to stay loyal to your business. When customers feel like they are a part of the conversation or movement, they then create an emotional investment within your firm that is not easily transferred.
4. Under Dog
Who do you root for in the SuperBowl? You may put your money on the team who is supposed to win, but most people want to see the under dog win the game. It is a more rewarding experience to see those who fight for something win it big time. This feeling is further compounded if it has the added benefit of allowing a customer to say “I used (product name here) before Oprah did”. Granted this can’t help you forever (or if it does you have bigger problems), but it should however help catapult your business into much more sustainable revenue levels.
So what is the moral of the story? This is the year to connect with your customers, make serious innovations and let your customers conversation drive your business. To all the startups out there.. 2010 is our year.
