SMBs can compete with larger businesses

Friday 11 January 2013

Business

Small and medium-sized businesses (SMBs) have a difficult time competing with larger rivals, but this is not an impossible task.

Writing for Guardian Professional, Alison Coleman said that many markets are dominated by major players with huge promotional budgets and economies of scale.

However, she noted that mainstream media advertising campaigns and lower prices are not the only factors that influence customer choices.

And by focusing on quality, flexibility and personal service, SMBs can carve out a niche in even the most competitive of markets.

"In a crowded marketplace the real trick is finding a gap and having the right product to fill it," Ms Coleman stated.

"Some SMBs have succeeded by providing services that their much larger competitors are simply unable to do as efficiently or as cost effectively."

Indeed many consumers prefer to do business with smaller companies, which are less focused on selling en masse and more on delivering a superb experience for each customer.

They are incentivised to keep each individual customer as happy as possible, as retention is crucial to their profitability.

With a smaller customer base, losing the custom of a few individuals could have serious consequences for the company.

Posted by Jenny Arthur