Checked and Balanced Accounting: Small Biz CAN Compete With "The Big Boys"

Small business has often been mentioned as the "little guy." The one who has to compete with giant retailers like Target, Wal-Mart, and others that are based locally. They have the marketing budget and the advertising dollars to drive the smaller competition out of business. Some small businesses have managed to compete with the Wal-Mart's of the world, and one has even rebuffed offers to sell products through the mega chain.

The truth is, small businesses everywhere are finding ways to compete with bigger competition and in some cases are winning the battle. How they are winning is what tells a compelling story. While none of it is rocket science, the cumulative effects of these efforts mean better relationships with customers and the area they serve, loyalty, and more business.

One such case was highlighted in a recent case study in the New York Times. Pamela Ryckman writes about how a local Kansas City dry cleaning business, Hangers, is competing with a Tide dry cleaning chain that moved into town. An excerpt from the story shows how different thinking can give you a competitive advantage and put you on top:

"Hangers continued to cultivate its offbeat image. "We have a personality in a business devoid of it," Mr. Runyan said. "We can't out-price or out-spend our big competitor, but we can be genuine, funny and edgy."

"He worked to create a tight-knit culture of service and accountability. If a garment was damaged, a store representative would call the customer immediately and offer to replace it. He held a St. Patrick's Day tailgate party for 60 people in a Hangers parking lot and financed a float in the local parade. "Maybe it's goofy and old-fashioned," he said, "but it seems to be resonating with the folks in K.C. Who would expect people to party with their dry cleaner?"

"He initiated partnerships with corporations, nonprofit organizations and community groups, and he can quantify the patrons gained from each. He also contacted schools and donates 10 percent of the proceeds from parents' dry cleaning back to each school."

The moral of the story is that small businesses are the cornerstone of the U.S. economy, and many have to compete with big national chains on a day-to-day basis. It's how they distinguish themselves from the bigger chains that shows their innovation, creative thinking, and marketing know how. Oftentimes, small businesses are better at reaching local customers than the higher financed competition, because they have to be more tactical and thoughtful about where their dollars are being spent. So think outside the box, take some lessons from other businesses, and find a way to stand out from the crowd.

Have you had to compete with a bigger business? How did you stand out, and are you succeeding? Adding personalized service to your business gives your customers something they're not getting for "The Big Boys". At Checked and Balanced I go out of my way to make sure I cater your bookkeeping needs to fit your business needs. Call now for a Free 1 Hour Consultation!