Small businesses are the backbone of local economies and provide unique products and services compared to large, mainstream chains. Even if they may not have the budgets, exposure and specialized departments that large companies do, small businesses can offer novel customer experiences and tailor themselves to their local communities. They often financially and socially support their communities of origin and are at the forefront of innovative new ideas. Even in the tough economy that we’ve been experiencing, 73% of small business owners predict their business will grow this year.
Even in a flourishing economy, some small businesses keep their doors open longer than others. Each business will have its own unique story behind its success or failure. However, there are quite a few recurring characteristics behind small businesses that last:
Understanding how much risk you can and can’t take
How much risk can you afford to take on your innovative new products and services? As you assess the risk of launching a new product or launching an edgy marketing campaign, you should also think about the consequences if things don't work out. Be sure to think about the financial, operational and potential social or community impacts. This is important for small businesses to think about, since you often don’t have the legal team and established reputations of larger companies.
Knowing your customers well
Small businesses may not always have the customer insights or market research professionals that larger companies have, but you should still research your prospective customers as much as you can and leverage secondary research when needed. Also, don’t forget to engage with your existing customers! By knowing more about what they want and what they don’t, it will help ensure you are meeting their needs.
Be sure to leverage resources you have such as your analytics or CRM to obtain and track this useful information.
If your brand or product is especially novel and innovative, it’s important to understand the current market demand, whether the demand is sustainable and whether you’ll be able to react to fluctuations.
Branding that sets you apart from your bigger competitors
Small businesses may not have the fame and legacy that larger companies do, but often distinguish themselves in other ways that your number of social media followers can’t define. Many small businesses gain exposure through word of mouth, which depends on human beings ‒ who will all have their stories and personal opinions on your business to share with whoever they’re talking to.
Many small businesses are also distinguished from their enterprise chain counterparts by their quality ‒ for example, an enterprise with a similar style may offshore or mass-produce its items, while the small business with similar branding may be known for making its items by hand using sustainable ingredients. Small businesses are sometimes known for having unique characteristics that help them stand out from their larger counterparts and/or in support of their local community.
A reliable team that can handle a relatively less-defined, established processes
There are noticeable differences between working for larger, established companies with long-standing processes and larger teams compared to the same position in a smaller business. Typically, a smaller business may not have the same expensive, robust software, specialized teams or defined operational processes as its larger counterparts. So, while this may mean team members are wearing multiple hats or might have to build their own processes with relatively little guidance from legacy systems or other team members, it also often means that they can adapt faster to changing times. This can allow small businesses to better engage with team members and customers, since there are fewer departments that have to sign off on changes. In other words, less bureaucracy and red tape can make it easier for a small business to adapt to quickly changing conditions.
While some people prefer this, some people prefer more robust guidance and structure despite the relatively more free-flowing organizational structure. If someone you’re interviewing doesn’t have any small business experience, make sure to explain the differences they’re likely to experience.
5. A solid quality online presence
This is essential for businesses of all sizes, but small businesses often have not invested their time and resources into a robust, consistent social media strategy or a user-friendly, informative, consistently updated website. There are quite a few statistics that prove the necessity and hefty ROI from investing in a quality digital customer experience, such as 88% of users being less likely to return to a site after a bad user experience.
While owning and working with a small business poses its own distinctive challenges compared to its enterprise counterparts, it can be uniquely rewarding as well. The less rigid structure, need for team members to wear multiple hats and relatively fewer layers of hierarchy can open up more avenues for business growth. Team members and business owners are often in closer contact, sometimes working right next to one another rather than in separate offices across a large building (or even time zones!). This means that you may have the chance to take on delegate responsibilities, teach new skills and help your team members progress in their career at a faster pace.
Overall, running a small business can offer a more personalized, flexible experience, with opportunities for close collaboration, local impact and internal growth. Such financial, communal and professional rewards are well worth taking the measures above to make the most of what you have to offer!
Author: Christina Nguyen
What do you focus on to help set your business apart and be successful? Feel free to let us know in the comments below!
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About Stingray Advisory Group LLC: Stingray Advisory Group LLC is based in Grand Rapids, Michigan, and is a proud member of Local First and the West Michigan Hispanic Chamber of Commerce. We help businesses grow. By creating customized solutions, we empower businesses and entrepreneurs with the tools to further their development.
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