One element of “The Great Resignation” of 2021 is the whopping 4.3 million people who quit their jobs and became entrepreneurs. That means that there are more small businesses today than before the pandemic.
Currently, the US has 32.5 million small businesses. They create 1.5 million jobs every year and are responsible for 64% of new jobs created in the US.
Small businesses don’t have the money of large corporations, but they do have other plusses that set them apart. Here are six that give smaller companies some distinct advantages.
1. Lack of bureaucracy means a faster turnaround in decision making
Larger companies have multiple layers of bureaucracy to go through for decision-making. From committees to boards to managers and other obstacles, deciding or changing takes considerable time and effort to complete. A new product or service could take months or even years to bring to the market.
But small companies don’t have that burden. A new product or service idea can happen much faster if there aren’t multiple committees tasked with decisions. Agility is vital in a small business. Quickly adapting to a changing market can be the difference between growth and falling behind.
2. Creativity and risk-taking
Creativity is discouraged at larger companies. They also tend to shy away from taking too many risks and embracing too much change. But that’s just what makes a small business successful. Small businesses tend to be more responsive and adapt better to changing market conditions. They can thrive by taking on things that big businesses won’t or don’t do well.
A small business is closer to its customers than a large corporation, receives feedback, sees changes in preferences, and proactively responds. Lean small businesses can easily shift gears quickly and adapt, something that big corporations avoid. Because the company is smaller, it has more control over output, can quickly correct issues, and adjust a product or service according to customer feedback.
Small businesses tend to be more responsive and adapt better to changing market conditions.
Even though larger businesses can afford to take risks, they generally don’t. Though they have the capital, there are also more people involved. Therefore, taking risks may not sit well with shareholders. The “shareholders” in a small business are generally the owner and possibly their employees.
3. Niche markets
Larger companies tend to use the “one-size-fits-all” approach to their market, which tends to be national or regional. Small businesses are better suited to a local or specific niche market. Building trust with your target audience goes a long way in marketing, getting the word out, and bringing in more customers looking for you.
Branded content is one way to reach that niche market. Your content can help educate leads, prospects, and customers and shows how you can help them. Start with a solid online presence on your website that puts your business’s name out there. Then start connecting with your target market using:
- Regular emails for those who opt-in
- Posts with product pictures and descriptions on Instagram and Facebook
- Informational videos on YouTube, TikTok, or another video platform
- An SEO strategy that attracts leads and prospects to your brand
Because digital marketing is less expensive than traditional advertising, small businesses can compete successfully with larger companies.
4. Flexibility and pivoting
So many small businesses scrambled to stay afloat during the pandemic. Very quickly, many small businesses had to close their doors. Many would not reopen unless they found a way to continue offering products and services. Business owners who began brainstorming and pivoting brought innovation that may not have happened had it not been for their flexibility and ability to change direction.
Online shopping is a mainstay of big-box retailers. Closed shops made small businesses embrace e-commerce. Dance and exercise studios began holding their classes via Zoom and other platforms. Restaurants went to takeout-only menus. Many small businesses like law firms went completely virtual. Others developed new products and services.
Small businesses that pivoted continued to serve their customers and bring in revenue. Some became busier than before the pandemic.
5. Personalized customer service builds strong relationships.
Customer service for many large companies consists of a call center on the other side of the world. But most small business owners do not want their customers to call anyone else but them. Personal service leads to a more meaningful connection, customer loyalty, trust, and other benefits.
The target market of a large corporation is a diverse range of potential customers. But when you know your target market, you have a distinct advantage. You know and understand what they want. When their needs and tastes change, you can adapt and offer them something new. This puts you closer to your customers and creates strong relationships that lead to loyalty, trust, return customers, and brand ambassadors that talk about your business to others.
6. Small businesses can lead the way for big business
Large corporations couldn’t exist on their own without help. Small business vendors offer solutions to large businesses that aren’t yet available elsewhere. Conversely, small businesses can also be a large portion of the big company’s customer base. Big companies can also partner with small businesses—or buy them out. The large business can observe the developing trends and emergent needs from small businesses.
Because they are more agile and have more flexibility, small businesses also influence big companies. The faster decision-making process means they can test new marketing, technology, systems, and processes faster, streamlining innovation. Big businesses watch these trends and see what works efficiently in a real-time market.
Small businesses that switch to VoIP can also gain advantages that help them compete with larger companies.
VoIP systems offer more secure calls and multiple features with high quality and a lower cost for their monthly phone bill. Included in your price are features like call waiting, music on hold, call screening, and other extras. VoIP systems cost less than a traditional hosted PBX system, saving your small business money while helping your customers keep in touch with you.
Contact Press8 Telecom today to discuss upgrading your small business phone system to a new, flexible VoIP system for less money than a traditional hosted PBX system. We’ll give you a free quote on the system that works for your company.
