Competitive Advantages for Small Businesses Even in a Down Economy

I know the economy is tough, and many small business owners are concerned about keeping afloat during this recession. But savvy entrepreneurs have some competitive advantages over larger businesses that they can use if they will just start thinking outside the box especially in the area of marketing. As larger businesses downsize and start to “turtle up” there are opportunities for entrepreneurs to exploit their natural competitive advantages to connect with customers in new and innovative ways. Here is a short list of what I consider to be perfect advantages of small businesses if they will just put them to work.

First – successful entrepreneurs have always known that they can’t be all things to all people instead they adopt a narrow market focus. By finding a small segment of customer they can create a strong reputation for serving a narrow market by finding a lucrative niche.

Second- Small businesses are much closer to their actual customers. They know the issues affecting their customers because it is affecting them as well and can alter their product or service to give customers what they need. By being closer to their customers they can easily create new products or services or change their offering bundles to help their customers.

Third they have better opportunities to partner with other businesses to create networks of strategic partnerships to help each other meet customer needs.

Fourth – without a large marketing budget, small business owners have an opportunity to use Guerrilla Marketing tactics, low cost even no cost innovative ways to establish real relationships and communications to their customers. Real marketing after all is nothing more than developing trust and confidence between the business and the customer to be mutually beneficial to one another.

Fifth – building on number 4, small business is personal. Customers and markets are hungry for businesses that allow them to connect to something beyond the product or service. Entrepreneurs who understand that first and foremost they are selling relationships can deliver a value story that has meaning to customers.

Finally – technology, especially using e-commerce and social media options can dramatically improve a small business’s ability to communicate with customers at very reduced costs in ways never before available. Even if your small business does not sell product or service over the internet, having a web presence is vital and using e-business tools to connect with possible customers has never been greater.

Yes, the economy is rough right now but instead of wringing your hands and hoping it will go away; savvy entrepreneurs are surviving, even thriving by capitalizing on their natural competitive advantages especially in developing innovative marketing opportunities. Share your thoughts about advantages small businesses have when it comes to marketing and developing business relationships.