The trials and tribulations of a small company are constant and unique. Many in fact never get past being ‘small’. Those that do however, do so not sheerly through luck or hard work, but in large part by doing specific things. Below we offer some insight into the common traits of successful small businesses.
1. Focus on the niche market
Many successful small businesses offer something specialised to a niche market that larger competitors simply don’t offer, or don’t offer well. A small business is not going to be able to compete in price with its larger counterparts. For example a local food shop is not going to be able to offer the same deals as Tesco. So don’t try! Get specialised. At VTSL we do this through our specialist phone system solutions for medical practices, business centres and professional service firms. It works because by focusing our resources on what these sectors really need, we are able to create a better product and a reputation for niche expertise.
2. Get cozy with customers
Once a small client base has been established, the most successful small businesses quickly establish a good track record and build a friendly rapport with thier customers. Unlike big corporations which can advertise to the whole community, small businesses often rely on word of mouth recommendations. Whether you are an independent solicitor or seamstress, the easiest way to attract more business is through referrals. Case in point, every phone system VTSL sold in the early years was via referral.
3. Expand to the new but retain the old
Successful small businesses expand to new markets without alienating their original client base. For example if you are a hosted phone system provider, you could start offering high speed internet connectivity as well. This would create demand from a new market and only make you more useful to existing customers, not alienate them. So think carefully as you expand: what is the net effect of this expansion on our existing customers?
4. Do what you know
Great small businesses focus on what they know and don’t widen their focus until they can afford to do so with expert help. As cliché as it sounds, it doesn’t pay to run before you can walk. Do what you do, brilliantly, until you have enough extra cash coming in to hire people that know how to help you expand to new products properly.
Read more about small business success in Part II of this blog next week.