For small business, every day is a jungle out there. And while plenty of businesses start out excitedly swinging from the vines, many struggle to survive and thrive in the wild. In fact, according to a UTS study:
There are many reasons for this high fail rate. One of the biggest these days is that entrepreneurship is encouraged more than ever and so it should be.
However, it also means many start-ups are fuelled by enthusiasm instead of basing the business around a solution to a problem that enough people want solved.
Even if you have an in demand product or service that people want, you need good planning and smart management to compete and win in the business world over the long term.
Here are seven tactics you need to clip on to your SME loincloth if you want to be King or Queen of the jungle.
A USP and speciality can attract attention and lure more loyal customers. Take a look at Domino's Pizza's famous USP, "You get fresh, hot pizza delivered to your door in 30 minutes or less - or it's free" which powered them to the number one position in the Pizza market.
Being creative can help smart, low-cost marketing at a local level is possible with affiliates, community events, radio and creative use of flyers.And, of course, the digital space. Google search and content marketing possibilities throw up relatively cheap but effective advertising and customer acquisition results.
Social media is another potent area that can be cost effective and also help spread the word. Keep your website and social media pages fresh and relevant.
To help stay up to date with industry challenges, opportunities, and trends, you could:- Attend conferences or local events, and sign up for training
In a crowded, competitive and aggressive market price has an enormous influence. The problem here is that customer loyalty is usually very low. If someone else offers something cheaper, they won't stick around.A better approach is to look at markets where you can offer more value than just a good price. It might be amazing service, a loyalty program, etc. Then you can look at increasing prices and ROI selling to the right long-term customers, rather than lots of less profitable clients.
How responsive you are to their needs and how valuable you make them feel should be reflected in your products and service. Constantly, take feedback from your clients to pre-empt any issues or changes in sentiment.
After all, it's likely that you're going to spend more time with them than you do with your family over the next few years.Have a clear understanding of what each employee costs your business and what they need to be achieving to help you increase sales, profits and ROI. Then believe in them and reward them.
But, as you grow, be on the lookout for any opportunities to diversify or adapt without impacting the core business. In this turbo-paced world, being 'agile' is critical for your growth and survival.It might be a new product or service that, or simply adding e-commerce or online options to you mix. Or if you're exclusively online, opening a physical location.
If you're in need of expertise and experience in helping small businesses take off, grow and thrive, remember that the Snap team are always here to help.
|Tags: Business Insights Design Marketing|