How To Deal With Competition In Small Business

By Subodh / February 16, 2013

Customers can hop online and search anywhere in the world for products and services in a matter of minutes. Small businesses are now competing against every other person or company that can make a customer the same offer. Normal tricks of the trade won’t work with today’s savvy customers, so it is important that you take advantage of anything that can make your business stand out in their eyes.

Here are a few easy ways to ensure your small business stays competitive:

Analysis of competitor’s strengths and weaknesses

The best way to stay competitive is to follow your strongest competition’s lead. Watch the moves they are making and the deals they are landing. You can learn a lot from their successes and sometimes even more by their failures.

Take advantage of new technology

There is no doubt this is the age of technology. New advancements in technology almost always result in more efficient and less expensive ways of conducting business than the traditional methods. Make a habit of following the news and taking a little time each week to research online what is new in technology.

Market your business using social media

The amount of users on Facebook, Twitter, and other social media sites is growing rapidly. The majority of the people in the world login daily to some recreational site that connects them to family and friends. This is not a trend; it is the new reality for socializing. Creating a strong and professional reputation online is essential to staying competitive.

How To Deal With Competition In Small Business

Improve your SEO to climb up Google`s rankings

People are not only socializing online, they are researching products and services online. They are entering their needs, questions, and concerns into Google search engines looking for answers. If your business does not appear on the first page or two of a search engine, potential consumers won’t know you exist. Your ranking can improve by posting quality articles and blogs with relevant keywords, and linking your site to other reputable and established online businesses.

Actively look for ways to reduce costs without effecting quality

Staying competitive should never mean cutting corners, but it should include cutting costs. There are always ways to reduce expenses that don’t directly affect the quality of your product or services. Start by analyzing each expenses necessity and looking for ways to reduce labor expense. For example, you can use Web-Based Billing Software instead of a full time bookkeeper to drastically reduce your monthly labor costs.

Unfortunately most small businesses fail in the first few years and it won’t be easy to ensure you are the exception to that rule. Keep an eye on your competitors, embrace new technology, marketing your business on social media sites, improve your ranking with effective SEO strategies, and actively look for ways to reduce your expenses. It is a matter of survival of the fittest, so every step you can make to stay competitive needs to be followed to guarantee success.