Starting small business is a worthy venture, which many have ignored in the past. That you did not launched yours previously, does not bar you from doing that today.
In order not to allow the numerous benefits which the small business offers to elude you, it is essential to start today and enjoy, the inherent and distinctive advantages in size.
Here are the distinct advantages of being a small business owner … today
1. Personalized Customer Service
Small business owners strive to utilise its small size to provide a more personal service to their customers.
Hence the most successful small businesses today, take the opportunity to deliver personalized and exceptional customer service very seriously.
This distinct advantage spans from the fact, that they usually serve a smaller coverage and can really get to know their customers needs as well as history. To develope and sustain long term relationships, is one of the benefits that keep customers coming back indefinitely - satisfied.
This type of trust and relationship building and sustainance, say to a family - father, mother, brother and sister can only be made possible by small businesses.
2. The Personal Satisfaction
Small businesses are more flexible, when it comes to satisfying their customers needs unlike large companies. They carefully scrutinise the customers demand that would extend the requisite satisfaction and do just that to engender happiness.
But unlike the large companies, when a client complains, "the dos and don`t" of the company`s policies will have to be examined first, to ensure the act conforms with the directives.
With this, the employees are unable to extend better customer service in defiance to the company`s policies. The result - customers who are unsatisfied with the company, obviously would leave; having discovered that their needs are not important to them.
Fortunately for the small business owners, this is where they leverage their services, by easily providing concessions to complaining customers. They can easely make their customers happy and satisfied by simply adjusting the policy; without going through the rigorous board or the legal processes.
3. Technological Tools
In today`s world, technology has made the business environment a whole lot easier to transact, communicate and carry on with economic activities efficiently.
The world wide web, email marketing, different apps, plug-ins and social media etc now give business owners access to organize and focus on communication. In that way, they`re better off, saving a lot of time, energy and thus improve efficiency.
To ease transactions and payment, point of sale (pos) systems aid small business owners to accept more cash without any difficulties. With this, customers loyalty can better be understood through repeat purhases and a higher lifetime value (LTV) witnessed and appreciated.
4. Lower overhead costs.
While large companies juggle in huge overheads, the small businesses utilise its size to enjoy lower overhead costs.
Due to its small nature, the business requires fewer resources to operate, maintain and carry on with the day-to-day operations. The lower overheads, enable the business owners to offer their products at relatively cheaper prices than their big competitors.
With this stategy, there`s no doubt that they are able to sell more than the big companies by getting a higher percentage of business from within a very limited area. Higher business as well as high concentration will enable the owner to do extremely well on a smaller profit margin.
5. Better Access to Credit
Though small businesses enjoy starting up initially with their owner accummulated capital. This, however, will depend on the amount saved and the kind of business involved, to carry on efficiently.
Where such amount is sufficient to fund the business, the owner, certainly will continue to operate within the bounds of such resources; especially if there is no consideration for expansion.
However, should the need for expansion of the business arise, they have a better access to credit.
Albeit, banks and other credit unions are still cautious, but access to seeking financial assistance is easier; with them now. Since they usually do not get involed in asking for huge amount of capital, it’s easier for small businesses to obtain loans.
There pre-occupation should be to make request, enter a bargain for the best rates possible and obtain their loans; unlike the large corporations, who usually will go through the rigorous legal documentations.
6. Reaction to Changing Market Conditions
Small business ownerss have the ability and are more flexible to making swifts, immediate and necessary changes when it matters most; to the changing market conditions. In fact, they are at the top of the game here.
Due mainly to their small size, most small businesses are compelled to be innovative, especially if they want to compete favourably.
The resources at the disposal of larger corporations - they lack, and so the only way they can survive, compete, and remain afloat is to come up with something creative, new, and different from what is subsisting.
It`s very obvious, that most big companies cannot react as quickly, to changing market conditions; but the small businesses can. So small business owners can aptly make changes in billing, new product, inventory or other procedures in response to changing customer needs.
7. Response to Customer complaints.
In a small business, it is less likely that difficult customer complaint will be allowed to remain unresolved, because the owner will soon be aware and take action immediately.
Your customers, know that small business owners can be available for them, even at nights, weekends and holidays. Your clients know that they can get in touch easily with you, who would resolve their problems, as it relate to your product or service. Isn`t that a big advantage? Of course, it is!
But larger businesses often take an extended period to react to customer problems. At that time of the nights, weekends and holidays when small business owners resolve their customers complaints, the big ones are waiting for lengthy chain of command, complex bureaucracies with numerous policies and procedures common to them.
Therefore, small business owners should be aware that the key to getting the better part of the larger businesses - is to carry on, with the things that they don’t do.
It`s obvious that your small size has its advantages, even more than enumerated above. Then, they should be put into judicious and effective use so as win the game over your big competitors.