How To Dance With A Gorilla - Small Business Can Beat Big Business

INTRODUCTION:

Taking on the competition can be quite a challenge. Big companies can have very deep pockets and be hell bent on wiping out those in the same market via a scorched earth policy.

However there are ways to take them on and win.

Figure 1: Taking on a (Narromine) gorilla in business can be quite a challenge.

1. Move Quickly

There is nothing like being able to move quickly and for most small businesses decisions can be made without endless meetings discussing options. Because you are small and by being able to make a decision without delay, you should alwys be looking to use this to your advantage> The best way to do this is by being very aware of the latest and greatest in your industry. This is a wonderful opportunity for you to get ahead.

This means you need to be on the lookout with your research. It could be:

• attending trade shows;
• being part of an industry discussion group;
• talking to key suppliers regularly;
• seeing what is happening overseas;
• receiving IbisWorld Research Reports from your small business accountant Sydney and Dubbo.

As small business accountants Sydney and Dubbo we assess our competition and are also constantly targeted by companies with new products and services. Some can be groundbreaking but others will just be a waste of money.

Sometimes you need to go with your gut. The trick is to try and get more decisions right than wrong but not be afraid of failure.

If an opportunity presents itself that could allow you to:

• create efficiencies;
• allow a customer to receive a better experience when buying from you;
• create a better working environment for your team (could be technology, training or a new staff member).

Be agile and make a decision quickly as chances are the big competitors will either take time to see how it goes or will put them on agendas but wait for sign-off which could take months.

Figure 2: Doing the Stomp, Twist or the Mashed Potato with a gorilla is not the preferred dance move unless you stand well away from them. Moves under the radar such as Irish dancing up and down on the same spot can still see you keep and win market share.

2. Focus On Service Levels

We all know this but how many of us actually review this part of our business but instead lament that we have just lost a customer to a big company due to price?

Get some business intel by doing a mystery shop at the big competitor's store. Compare the buying experience you get compared to what you offer your customers. Jot these differences down and then market them like crazy to your customer base and let your team know.

Become famous for the little things you offer. You could own a taxi for example that:

• asks the traveller what music station do they like;
• would they like to read the paper you provide;
• is the temperature to their liking;
• would they like to be picked up at a certain time and you will be there no matter what;

You get the drift.

When was the last time you had a customer who actually went "WOW!!!!!!" after dealing with your staff, product or organisation?

3. Have A Social Mission

Having a social mission is where you doing something good for society when somebody deals with your company. If you were selling panchos for example, you might like to give one to a needy person in Peru each time somebody buys one from you.

You need to select your social mission carefully as people will become suspicious if it's purely a marketing ploy without any real passion to make a difference or a cause that people might not think worthy enough to make them want to buy from you.

4. Offer Solutions Not Just Products

If you sell brooms and Bunnings or Mitre 10 sell exactly the same broom then unless you offer something more than they do chances are you will get involved in a price war whereby there is usually one winner and it's not the little guy.

Making sure your sales team knows their products and asks questions and listens to customers so that they can offer advice will always be a good start to winning a customer over and maintaining them.

If I went into your business looking for one of your products or services or if I phoned, how will I be dealt with by your team?

Whenever I receive an enquiry from a client or potential client I need to find out what is the problem the client really has and what would I do if I were in their situation. Prescription without diagnosis is malpractice.

5. Do A 'Dennis Lillee' (Have A Fast Delivery)

What is your delivery time compared to larger competitors? Naturally the quicker you can deliver a product or service will give you an advantage as sometimes bigger companies sit on orders or take days, weeks, months to get the product out.

Figure 3: Do you have a fast delivery like Dennis?

6. Offer Convenience

What hours does your company operate compared to the competition?

Do you deliver or do you ring customers in advance when you know that your product or service will have a price rise soon so you encourage to buy from you while it's cheaper? (Yes this does work! One client we have does this and not only does it prompt a sale but sometimes encourages bulk purchasing by their customers).

Is it easy to do business with you or is it just a complete nightmare?

CONCLUSION:

Rather than sitting around complaining that you can't compete with a big company, work out how you can turn them into an advantage.

Even if you don't have a big competitor, still do the exercise on why somebody would still prefer to deal with you.

Dancing with a gorilla can be dangerous but only if you let them take control or intimidate you.

Be agile, stay on the front foot and it's most unlikely they will ever crush you.