It’s easy to feel at a disadvantage when you’re a start-up or SME competing with industry titans. There's little doubt you offer a great service to your customers, who keep coming back time after time, but your bigger rivals still seem to have the edge. Plentiful resources, headcounts, and budgets are benefits of working for a large company, but smaller outfits can gain the edge when they know how.
SMEs and start-ups have certain advantages over larger organisations, including agility and the ability to specialise. Exploiting these strengths allows small firms to vie for custom more effectively and build profitable businesses. The accelerating globalisation of business means small firms can, to a great extent, become whatever they want to be.
So, how can small businesses compete successfully with larger businesses? Our experts reveal how to gain the edge using tech, talent, and agility.
Recognise the benefits of working for a small company
If the pandemic taught businesses anything, it’s that the most agile and adaptable outfit wins the day — regardless of size or bank balance. Small companies' inherent agility and flexibility allow them to respond faster than larger firms, which can be a major plus in an evolving business landscape.
While small companies can't always compete with large companies on pricing and product choice, they can often bring new services to market faster. Major companies can get bogged down by corporate processes and red tape, giving SMEs a window of opportunity.
In many small businesses, the primary decision maker is also the person working on the front line, offering the benefit of their expertise to customers. As a result, they can provide a specialist service, but also one tailored to the needs of individual customers. Many people are fed up with the one-size-fits-all approach taken by national chains and are hungry for bespoke service and a great customer experience.
Embrace tech as the great leveller
Nowadays, the conversation is less ‘big company or small company’ and more ‘what tech are they using?’ In the digital age, it's possible for small companies to compete with large companies and to take on an altogether different personality if they so choose.
By operating online, being active on social networks and taking steps to raise brand awareness, they can present themselves as larger, more outward-looking organisations. A company may only have a small number of employees working out of a tiny office, but by using the web, they can reach consumers across the globe.
Data can also give smaller businesses an edge where growth is concerned. The pandemic accelerated business digitisation and changed shopping behaviours, making data one of a business's most valuable assets. By combining data science with targeted marketing and speed to market, smaller businesses can give global organisations a run for their money.
The only real constraints on SMEs' ability to trade globally are a lack of capacity and the skills needed to handle a worldwide customer base. But should an SME see a surge in product or service orders, they can always bring in new employees and move to larger premises. Temporary employees, for instance, can help cope with spikes in demand.
Build a ‘big brand’ presence
Define your mission, vision, and values
Consumers need to know what your company is about — and so do potential employees. Our research shows that half of younger workers researched a prospective employer’s corporate values before applying for a role. This is backed by research from Accenture, which shows that consumers carefully consider brand ethics and purpose before purchasing.
Once you've established a set of values, capture these in your vision and mission statements. They define your company’s purpose and what it is trying to achieve, providing a focus for the future. The statements also help customers, partners, suppliers, and job applicants make an informed decision about your business.
Related: how important is ESG to jobseekers?
Deliver professional service
Your SME needs to deliver great service to customers the first time they get in touch and on all subsequent occasions. This means answering calls, responding to emails and social media comments, and always putting customers first.
If your company doesn't have the staff to cope with the influx, bring in more people. Or alternatively, invest in virtual office services, which provide access to customer service experts who can act as your 'front desk'.
Focus on your employer brand
In order to build a successful company to compete with large companies, you need to get good-quality people onboard. This means making your company an attractive place to work and ensuring staff members have sufficient incentive to remain with you for the long term.
Building a strong employer brand is essential — if you develop a poor reputation, the best candidates will stay away. Work with recruitment agencies to define your hiring strategy and how to avoid making common hiring mistakes.
Invest in your digital presence
Businesses are operating in a digital-first marketplace — customers are now more likely to interact with your brand through a digital channel first. If your website is stuck in the dark ages, you risk marking yourself out as a small player.
It should have good user experience (UX) and allow the user to move seamlessly between channels, so they can order online for same-day store pick-up or interact with you via app.
Become a thought leader
SME leaders can become even more valuable assets for their companies if they can develop a reputation as an industry expert. Writing insightful blog posts, commenting on other people's articles, and sharing content and links can increase your profile.
Attracting social media followers certainly won't hurt either, but you've got to ensure a steady flow of great content. That's the only way to attract people's attention and keep them interested.
Hire quality people
Attracting top talent to your business can give it a real boost. You want to bring in skilled, experienced professionals with the energy, drive, and ideas to take the company forward. Attracting the best talent isn’t necessarily all about the size of your budget, either — if your brand has a strong and ethical purpose, is willing to allow flexible working, and prioritises work-life balance, you may win out over larger companies.
Equip yourself with the right talent to carve out your competitive niche — get in touch with the Robert Half recruitment team today. To learn more about talent expectations or hiring trends, visit the Robert Half advice blog or get your free copy of the 2023 Salary Guide.
