Small Business Strategies

The technology innovation trend we saw it the past year will continue in the retail industry, with mobile payment as one of the emerging technology.  Shoppers can now compare prices of any item online or in brick-and-mortar stores with a smart phone.  Retail analytics can predict shoppers’ life styles and target them with promotions to increase margins.  So how does a small business compete with large retail boxes that have the ability to afford the cutting edge technology?  This is not an easy task but here are three strategies that could help.

 First, a small business should look to diversify its revenue stream.  A small business could not compete on price along with the larger retail box.  One advantage the small business has over chain stores is that it knows its customers on a personal level.  Offer customers the experiences that they normally wouldn’t get from a chain store.  For example, local grocery stores could offer healthy eating and cooking events.

We all know that small business is the backbone of our economy.  Local businesses can take advantage of their connection to the local community and enlist support from within the community.  One example is to partner with local schools and charities to offer support to these organizations.  By doing so, local businesses increase their role in the well-being of the community and therefore could increase the support and loyalty of the community.

Another strategy is to garner support from its vendors.  Vendors who sell to large retail boxes are usually forced in negotiation to provide products at a deep discount.  Small businesses could take advantage of this fact to create mutually beneficial relationships with their vendors and suppliers.

Finally, small businesses need to look at the technology and how they could adapt and utilize what they can afford to compete with large retail chain.  Small businesses could do that by choosing scalable POS and back-office systems that provides them with the same functions and capabilities as the large retailers.