As a private business owner, competing against larger companies with deeper pockets and more resources can be daunting. However, with the right strategies in place, we outshine our larger counterparts.
Here are some ways that private businesses level the playing field to successfully compete with larger companies:
- Focus on a Niche Market to be the Best: Large companies often have to cater to a broad customer base, which can make it difficult for them to excel in a specific area. We, on the other hand, can carve out a niche market and become experts in that area. By specializing in a particular product or service, or underserved segment of the market, we differentiate ourselves to attract customers looking for specialized solutions. This is about being remarkable over being the biggest.
- Build a Team that Cares: Private businesses have the benefit of team members working closely with the CEO founder. This fosters greater mission alignment and the chance for expert development. People’s expertise translates into customer outcomes. You can measure this with both an internal and external Net Promoter Score.
- Digitize Everything: Technology has made it easier for small and medium-sized businesses to compete with larger companies. Cloud-based software and services are more affordable and accessible than ever before, making it possible for small businesses to access enterprise-level tools that were previously out of reach. Utilizing technology to streamline processes, automate tasks, and improve efficiency can help small businesses operate more efficiently and effectively. This includes being able to hire the right talent anywhere.
- Focus on the Customer Experience: Large companies often struggle to provide personalized customer experiences because they have so many customers to serve. Map out your customer experience – identify how you make it easy to deliver a “wow” impact.
- Mine Data for Gold: Far too often, private businesses do not mine their data effectively to gain clarity. Applying the 80/20 principle will be powerful. For example, what are your customer segments, do you know why the best segment loves you (voice of the customer), is customer acquisition aligned, and is pricing optimized?
- Collaborate with Other CEOs: Many business owners learn that peer-to-peer experience sharing provides for breakthroughs, not-to-mention, and peace of mind. Form both formal and informal groups to learn with. I am a member of the 2% CEO Mastermind coached by Paul Berman.
In conclusion, competing with larger companies as a private business requires a greater degree of focus and mission-aligned team members. Be the best, not the biggest. Foresight CFO is here to help you become even more effective. We work with CEOs about winning based on what they really care about quite often.
Schedule a 25 Minute Discovery Call. with me today to discuss what you want from your business and what is slowing you down.
