Adapt Or Perish Small Business Survival In The Land Of The Giants

Writen by Craig Jones

Mega--stores are a fact of life and they are not going away. If you own a small brick and mortar business, you just have to adapt. You must discover and exploit their weaknesses and you must develop your strengths. It's a matter of your survival and you must do what it takes within the confines of integrity and the Golden Rule.

Keep in mind that you are not even on the radar screen of the mega--stores. You are not competition to them, yet they are competition to you. To survive, you must learn their weaknesses and develop your strengths.

Their Weaknesses

• Their sheer size makes them slow to move and adapt.
• They have information about national market trends but they may be weak about some specific local market conditions.
• Their management decisions typically come from corporate headquarters. This may include which products to stock, which price to charge and how to display merchandise.
• Customer service is sometimes a weakness. However, the mega--stores have improved in that area last over the last few years.
• Products are not always priced. Sometimes the mega--store employees are just too busy or have a "That's not my job" mentality. There is nothing more aggravating than being interested in an item but not knowing how much it cost. Some customers will go to the customer service area and ask what it costs. Others will just leave without buying the item they were interested in.
• Some people just don't like them. For whatever reason, some people just will not shop at the mega--stores.

Your Strengths

• You are small. You can adapt to market conditions more easily, especially your local market.
• Customer service is your biggest strength. Learn more about it. Go the extra mile. Develop a more personable atmosphere in your store. Greet customers within 10 seconds of entering your store. Smile. Learn their names and call them by name. When they leave your store, say "Thanks for stopping by", or "Have a good day". Smile again. As a small store with few employees (or maybe just one!), they will learn to recognize you. They will feel more comfortable with someone they have dealt with before.
• You are small enough that your merchandise displays are very manageable. Make sure they always look nice. Make sure your customers can easily find what they are looking for. Make especially sure they can see the price of every item.
• Some customers will shop at a small locally owned business instead of a mega--store just as a matter of principle. It's their way of protesting against the 'big guys'. Give them a good reason to come back. Give them great customer service combined with excellent products.

Some Practical Advice

• Learn from the mega--stores. They spend millions of dollars on research and marketing. Visit their store and observe how they do things. You should be able to pick up a few tips that you can use. For instance, there is a reason that milk is normally at the back of the grocery store. There is a reason that impulse items such as candy and magazines are near the checkout stands where you are normally waiting. Notice how the very newest releases are at eye level in the video store. Notice the paint colors used in various mega--stores. Different colors evoke different emotions. Listen to the music played in stores. Be observant. There is a psychology to marketing and merchandising. Learn how to use some of it to help your business without being manipulative. You want your business to be a customer--friendly place.
• Listen to your customers – they give you your best market information. They will tell you what they like and don't like. They will sometimes ask for a product that you don't normally carry in stock. Maybe even the mega--store doesn't carry it. If a few customers ask for it, you may try getting some to see how they sell. You are flexible enough that you can that. The mega--store normally cannot or will not.
• As big as the mega--stores are, they don't carry everything. Or they may just carry a small selection of a particular product group. You can find your niche by studying the mega--store in your area. You can find that product group where they are weak.
• Don't give customers too much of a selection in products. That may sound odd but it really depends on your product line. Sometimes, too many choices are not good -- don't add to their daily frustration. 29 different choices of blue paint color is okay for a paint store, but 29 different types or brands of CD--Rom drives for a computer store is redundant and can be frustrating for a customer trying to decide which to buy. Sometimes people just want to get in and out with what they need. Help them make their life simpler. Sometimes just two or three choices for each particular product should suffice. You could give them a low--end cheap choice, a high--end higher quality choice, and a middle--of--the--road good value choice. Use common sense – you know your business best.
• Always do the right thing. Don't think you can get ahead by lying or cheating. You can't. At some point, it will come back around. In addition to being wrong, it will hurt your business. Do what's right and always treat people with respect and courtesy.

Mega--stores may make your business more difficult but you can survive among them. Develop a Rambo or a guerilla mentality as it pertains to survival. Adapt to your surroundings -- learn and change. Be smart, keep your business efficient, and above all, treat your customers like royalty. They will come back and they will tell people they know –- and that's the best advertising there is.

Craig Jones has been a small business owner since 1991 and a Realtor since early 2005. Check out his newest web site called http://www.The-Best-Websites-Guide.com. There you will find a collection of some of the most useful websites around. We list the top websites in over 15 categories that are jam packed with loads of free information that can save you time and money. We don't overwhelm you with too many choices in each category -- we only give you the cream of the crop.