Size doesn’t matter, it’s what you do with it - 3 reasons small businesses have the advantage
The smaller it is, the harder you need to work at it – and thus the greater enjoyment.
Well, that was my experience building three businesses from the kitchen table to micro businesses, small businesses and now beyond. I was asked to pass on some advice, so here it is.
Small businesses are a large economic force in Australia; the vast majority of businesses are defined as ‘small’, less than 20 people. It is fair to say that small business is a backbone of the Australian economy; they are the glue that binds a community together. These are the mums and dads paying an important share of the Australian tax burden, yet they get the least airtime.
Many in small business highlight the barriers they face, and unfair approaches applied by the ‘big companies’ more than 200 people – which, by the way, make up less than 0.2% of Australian businesses.
Digital breaking downsize barriers
Small business has many advantages, especially in the digital age of global connectivity – if anything small business has the greatest opportunity, it just needs to be seized. While it is true mountains of ‘red tape’ exist to slow commerce down (that’s another story), and thus small businesses face the greatest impact, there remains more opportunity than barriers.
If you’re small, you can be agile, responsive and you can control the quality of your product or service. To achieve ‘customer excellence’ and grow a business from a kitchen table simply requires a different mindset; focus on the opportunities, not the barriers.
Here are my pragmatic steps to be a better business whatever your size.
1. Pay it forward
Remember why you started your business, and remind yourself every day. You saw a gap in the local economy; you’re doing something different or better. Never forget that gap, it’s what will drive your passion. Do whatever it takes to provide value to your customer and your supply chain; trust is hard earned, easily lost.
Stop focusing on what you’ll get and remember ‘price is only an issue in the absence of value’. Offer value (what the customer gets) beyond anything else. We have all heard amazing stories of business going ‘above and beyond’, that alone is the very best marketing tool you’ll ever have – word of mouth.
I have lost count of the number of free things I have done in business. Daily, I will always say yes and help first, the commercial aspect comes second and over the years, across several businesses, getting paid has never been a major issue.
2. People buy from people
Humans beings are emotional creatures; we thrive on interaction with others. Buyers of a product or service (digital or in person) are just people. They need praise, reward, support and leadership just like you. A deal will be won or lost on you and your people. Ask anyone who makes regular business investments; the type of people running an organisation is one of the most critical factors for a product or service to be viable for investment.
Your customer wants and needs to know you’re listening; they should always have a connection with you, even when they are not buying from you. Whatever channel you trade through, you must connect with your customer, just reach out and say hello!
Customers no longer need your communication channels (website, phone, email) to tell the world about your business; they have social media. Invest in your people and your customer will buy from you because they ‘like’ buying from your people.
3. Integrity – even when no one’s watching
Being in business and real leadership is lonely stuff, it’s never a popularity contest. Often, you don’t have anyone to turn to for advice, and many just don’t understand the real pain of cash flow. Integrity in business counts – what I mean is doing the right thing when nobody's looking.
Integrity sets the tone and culture for everything you do; take one shortcut, and you’ll be taking them all the time. If it’s hard – and it should be, because that is how you create value in business – deliver a product or service to meet demand. Remind yourself: if it were truly easy, everyone would be doing it.
The truth will always keep you honest, even the Australian Taxation Office (ATO) will work with you if you’re honest with them. There are many times in the early days of business I needed to seek a payment plan with the ATO, and each time they went out of their way to help.
Bringing it all together
The size of a business has no relationship to quality of its product or service. In reality, many small businesses can and do charge a premium because they offer genuine quality. As a small business, you already have a competitive advantage. Stop worrying about the competition, avoid them by focusing on adding value to your customer.
Starting, owning and running a small business is nothing but a positive experience, so start seeing the opportunities, not the barriers.