Sunday, September 6, 2015

Don’t Be Afraid of the Big Bad Wolf: Small Businesses Stand Up to the Big Guys

Flashback three years ago to my high school days. It’s Friday afternoon. My classmates and I all sit anxiously at the edge of our desks, eagerly awaiting the sound of a bell to commence the weekend.  Finally, the clock strikes 3:45 pm, and a loud noise bellows throughout the entire building, followed by a cacophony of students rushing towards the doors for two days of freedom. My friends and I did not even question what our first plan of action would be after school concluded. We knew exactly where we would go: Zesto.
Zesto, originally established in 1949, has the atmosphere of an old-fashioned diner with traditional favorites like ice cream, hamburgers, and hot dogs. Located on Ponce de Leon Avenue, just a block down the street from my high school, Zesto was one of my favorite hang out spots. This Zesto is also a historic restaurant for many locals because it had been in business in that spot for 60 years. However, as of September of last year, Zesto closed its doors on Ponce for good. I was dismayed when I returned to this spot to find a branch of the large fast-food chain Cookout operating in its place.


This situation is the storybook example of the big bad wolf and three little pigs. The little pigs characterize typical “mom and pop shops” that simply cannot stand up to the strong “wolf of wall street.” As a reader, you cannot help but root for the little pigs, the underdogs. But in reality, the majority of people side with the wolf—the large companies that take over smaller businesses we love. After all, popularity is part of how these companies became wolves.
There are other Zesto locations in Atlanta, although not with the same memories or history, so I have to hope they will not have the same fate as the location on Ponce. Small, local businesses do have some advantages they can utilize to compete with big companies.
Here are 5 key components small businesses should consider:

1. Quality Over Quantity
Customers of local businesses who return again and again to make purchases are more loyal than those of larger entities. Small companies must remember quality over quantity, especially in their social media campaigns. Building relationships with social media marketing is so effective for small businesses because the relationships are much more personal. While big brands have agencies publishing social media content, the content published by small businesses usually come from the owner or actual employees who are dedicated to their brand promise. Consumers acknowledge this big discrepancy between the authenticity of corporate and small business social media marketing.

2. Embrace Character
            Most large chain corporations have the same look, often impersonal, in every city. Smaller businesses can stand out by creating an inviting, unique character with surmount service. Individual attention and building personal relationships gives small companies an immediate leg up on competition by making their customers feel special. A big company can outspend small ones on marketing, buying magazine placements and TV advertisements, product development, and much more, but customer service can be a genuine differentiator.

3. Leverage Locality for Optimization
            Another way to beat the competition is by targeting a more local audience. Local search is becoming more relevant than ever and increasingly important to consumers. In today’s context, being the best of its kind in a certain city is much better than being “okay” by standards on a national scale. Local businesses should utilize their “home field advantage” to build their reputation in their location. Small companies can capture a niche market and edge out competition by optimizing for a specific local area. The key to success in the face of aggressive, well-endowed competitors is to concentrate on frequently fine-tuning products and services to the particular, unique needs of their customers. Small entities should resist temptation to try to reach all customers or to imitate their large competitors. Small businesses will perform better by focusing on customers who appreciate the local touch and ignoring those who favor national brands.

4. Personalize Social Engagement
            In addition to local search optimization, small companies can overcome competition by increasing personalizing their brand strategy. Large businesses tend to lose some of their personality once they reach a certain point in their growth. Being small enables companies to provide each customer a more personal, humanized experience. Small companies should also nurture their following on social media to attract more posts and followers, and the bigger and more active a companies’ social media presence is, the higher it will rank on Google searches.

5. Agility
Big companies cannot move quickly. They are loaded down with bureaucracy and red tape that make even simple changes require a long list of procedures and approvals. Local businesses can leverage their small size to stay on top of changing market trends and be ready to act as soon as an opportunity presents itself. In addition, if they realize they are moving in the wrong direction, they can pivot without negative impact and get back on track much quicker than a large brand can.

            When a big wolf moves into town, small businesses do not need to be afraid. Although they do not have the same types of resources as the big guys, they can still compete in the market by exploiting their advantages in commitment to their loyal customers, creativity, and agility.

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