How Small Businesses Survive Competition in Today’s Economy
5 min read
Small businesses bring communities together. Your favourite restaurants, wholesale stores, coffee shops and others are all part of the small business group. Small businesses are emotionally bound to families and communities that make big cities more diverse and economically prosperous. But actually how small businesses survive competition?
Setting and running a business is not an easy task. The fact that nearly 60% of new companies fail in the first five years scare a lot of potential entrepreneurs from starting a business on their own. If you want to know why small businesses fail and how to survive the competition you’ve arrived at the right place. Below we will answer these questions that can help you along the way of becoming a successful small business owner.
Why Small Businesses Fail?
The thing is that industries are led by the large companies that naturally bring more profit and occupy nearly the entire market. Their influence can create trends and set standards that impact the small business survival rate. Moreover, they are constantly developing new technologies and techniques that make production easier and economically more efficient. Surely a new technology is always more than welcome, however, when it’s too expensive to integrate it into your business it may start causing troubles.
Many inexperienced entrepreneurs, when starting their own business, think that setting and running a small business is an easy task. On the contrary, it often proves to be a hard and daring process requiring constant innovation and leads generation. Finding working space, suppliers, identifying potential customers, running digital campaigns and hiring staff are just a few of the obligations that a small business owner must complete so their business functions normally. Actually, if something goes wrong for just a second all of the hard work invested into the business can be gone for good. For that reason, choosing the most suitable survival strategies for startup business is a priority if you want to stay in the game against all odds.
Start for the Wrong Reasons
One of the most common reasons why businesses fail is starting it for the wrong reasons. I understand that we all want to be millionaires, but do you have the required knowledge, money and time for your business? Surely you cannot sell dentistry supplies without having a basic knowledge in dentistry. Moreover, you need to invest a lot of money to buy products and keep them in stock so you’ll be ready to answer a big demand. If not, you risk losing collaborations due to inability to meet customer expectations. Many have walked that path and failed gloriously. To avoid that, you will need to sacrifice a lot and find the right reasons such as love and passion for your job as well as determination and patience.
Many statistics reveal that small businesses fail because of poor management. New entrepreneurs lack relevant business and management knowledge in areas like purchasing, selling products and managing employees. Failing to find an appropriate reaction when dealing with a misunderstanding with a supplier and a worker can be costly for your company, especially when that supplier or worker is crucial for your business.
Lack of Planning
Without a plan, Doomsday is not so far away. You’ve got an idea, but what next? In the business world you cannot prosper without a short-term, medium and long-term plan. How long do small businesses last when they lack a long-term strategy? Not long, that’s for sure. So if you lack the skills and knowledge required for planning, don’t be afraid to ask for outside help, like a consultancy, a mentor, coach or something similar. Like we said before, entrepreneurs who fail to plan, plan to fail gloriously.
How Small Businesses Survive Competition?
Reinvent Your Business
As time goes by people get tired of buying the same old products and services. There is nothing wrong with the quality of yours, it is just our human nature – to get bored of doing the same thing repeatedly. Therefore, you need to reinvent yourself. You can do that by analyzing the market and competition and see what they’ve changed. Whether it is going to be a new packaging, an entirely new product line, or a service offering the same solution but with an upgrade, it most certainly will catch the attention of your old customers back and even attract new ones along the way. On the other hand, some say that reinventing the wheel cannot turns things around, but times have changed and this method really creates results.
Create an Online Store
Nearly 70% of shopping is done online, and that trend will increase in the coming years. Do you have an online shop? If not, why not? After all, we are living in the golden age of e-commerce and you must take full advantage of the situation. However, I can understand that even with an e-commerce shop you still struggle. SEO and digital marketing as a whole are becoming more expensive and complex each year. But there has to be a solution to that problem, right? Actually, there is! This is where Enterprise League enters the picture. We are a B2B platform that builds new partnerships and creates new opportunities. You can collaborate with companies all around the world and grow at your own pace. Check out all of our great features and sign up here to regain the control over your business.
Contact Competitors or Their Former Customers
The best way to find reliable information that can help you survive is by reaching out to your competition. I am not talking about a competitor in your local area, but one that is located far, far away. The truth is, they have knowledge and experience acquired over many years in the industry. While not being their direct competition, they will offer insights, knowledge and even sales techniques that can help you grow your business. And again, Enterprise League can build that bridge for you and connect you with such companies. Find a company with the same niche and different country and connect immediately.
Team Up with Vendors for Joint Sales
The most important sources for small businesses are recommendations and referrals. The best way to get more referrals is to team with other companies that sell on the same market but do not represent direct competition to you. Collaborate with each other and recommend other ventures that can help you grow. This is, once again, available on our B2B platform. Through Enterprise League you can build strong and loyal partnerships that will only bring profit and prosperity for your business.
If your current supplier does not lower their prices, or can’t seem to meet a deadline, you might need to think about switching vendors. Act timely, because if you don’t explore your options, your competition may beat you to it and you’ll find yourself falling behind, rather than leading the way. To that end, Enterprise League offers one of the best ways to find suppliers. All you need to do is to publish a tender specifying your needs and you will be contacted by a wide range of suppliers with their offers. It will be up to you to choose the one that matches your criteria. Finally, tenders is a powerful tool that can be used in so many different ways, be creative and put it to good use for your business.
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