Partner Article

Industry Disruptors: The Small Businesses Competing with Big Brands

There’s no such thing as a new idea, but what if your business idea means that your competing with some of the biggest brands in the world?

Just because a big corporate company already has the majority of the market doesn’t mean that you need to sulk off into the background.

Small businesses are the back bone of the UK’s economy, with annual start-up rates increasing from 440,600 in 2011 to a record breaking 581,173 in 2014.

The continued growth of small businesses is a clear indicator that no matter the niche, there is a place for growth here in the UK.

So just how is it possible that small businesses can compete with these big brands?

Solutions Focused

While many corporate companies have board members that are only thinking about the bottom-line, the core concern for a small growing business is customers.

A customer-centric business is fully aware of their target audiences wants, needs and day-to-day problems, enabling them to fully empathise with their target audience, and provide them with a more authentic product and service that is tailored to their needs, rather than tailored to hitting sales targets.

“We founded our company after getting sick of travelling to our delivery office to collect parcels. If you want to send gifts to friends or family, why should it come with the onus of either annoying a neighbour or standing in queue?” comments Liza Kate Miralman founder of Postboxed.

Offering people a solution to a problem has been a driving factor for many small businesses, as it appears that the bigger a company becomes, the more out of touch they are with their audience.

“In such a rigid commercial structure, it’s not surprising that the personal touch is often lacking. We seek to exploit that by building a community with our customers. For example, we frequently hold coffee mornings where customers can come along to meet and mingle”, advises Fraser Sutherland, Marketing Manager at Storage Vault.

Specialists

Whilst many large corporate companies have the ability to offer multiple product offerings, this scattergun approach of being ‘everything to everyone’, leaves them vulnerable to those who are specialists in their field.

Because let’s face it, how can you be an expert in all of the products that you offer?

“Haircare is a large market, but there was no suitable product for my hair, so I started my business and took my place between the brands”, comments Michelle Sewell Managing Director of BecomeMaya.

If a big brand cannot offer the bespoke offering that a small business can provide, they will quickly find that their brand loyalty shifts to a smaller business who are experts in their field.

Customer-centric

Whether you’re a company of 6 or 600 the expectation for customer service has never been greater, but it appears to be the Achilles heel of the corporate companies who find great difficulty in retaining those loyal customers once they’ve experienced a negative service.

“A big company can outspend you on marketing, buying, product development, advertising and everything else, but customer service can be a real differentiator”, says Skyler Slade, Co-Founder of Tandem.

For corporate companies if they loose touch with their customers they can open a space in the market for those who can provide a more dedicated service.

It’s well known that as businesses become bigger they can become slow and unresponsive to their customers needs, where as a small business is much quicker to respond.

“A well-run company, irrespective of its size, can provide far superior and consistent local knowledge and personal service to its customers than a poorly-run company, or a company that places increased profit over good customer relationships,” comments David Tate Director of Xion Water Solutions.

No matter the industry it’s clear that consumers and small businesses alike are being driven to small businesses. By doing it differently and putting customer service at the top of the agenda, a small business can thrive even in a dominated market.

This was posted in Bdaily's Members' News section by Rebecca Moore .