5 Tips for Dealing With Local Competition

Have you ever looked at your business (or the business of someone else) and said “I could do better with it”? Or “There’s something I’d like to change about this business”? Or “I’d like to see more people take care of my customers better”?

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5 Tips for Dealing With Local Competition

Have you ever looked at your business (or the business of someone else) and said “I could do better with it”? Or “There’s something I’d like to change about this business”? Or “I’d like to see more people take care of my customers better”?

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If so, then you’re not alone. Millions of Americans feel the same way. In fact, small businesses account for most of America’s economic activity. Small businesses are generally privately held corporations, partnerships, or solo practitioners that have fewer staff and/or fewer annual sales than a large-scale company or organization. Many of them are mom-and-pop operations run by a couple of people. There’s no denying it: Small businesses can be aggressive, entrepreneurial, and downright relentless when it comes to customer service.

But did you know that there are actually several kinds of small business? The types commonly referred to are independent businesses, which include shops, boutiques, bakeries, cafes, and restaurants; franchises, which include brands used by hundreds of thousands of independent businesses; and business agents, which represent just a few. Each one has their own strengths and weaknesses, pros and cons, rewards and drawbacks, and appeal.

Independent small businesses are flexible. They don’t need to rely on big-company policies and rules. Instead, they keep their books on their own books, follow their own policies (such as having no mandatory employee mediation), and determine their own profits and losses. Owners are free to set their own hours, which makes them ideal even for start-up entrepreneurs who aren’t tied down to office hours.

But what small businesses have in common (and what many potential small business owners forget) is that they all have their own overhead. That means you need to be able to pay for things like office rent, supplies, utility bills, taxes, insurance, payroll taxes, and more. A small business owner doesn’t have a lot to depend on other than time and resources. Unfortunately, some small businesses can be financially unstable and vulnerable if the right circumstances go wrong, such as a business seizure or bankruptcy.

On the other hand, the upside is that even small firms can grow into profitable companies with enough talent, experience, drive, and hard work. In fact, many successful business owners started out at the bottom – working only one or two jobs from home before advancing to managing entire teams of employees, overseeing operations, and more. The most successful small firms have one thing in common: They have developed highly efficient systems that serve their customers well. Many small business services, including accounting, bookkeeping, payroll, marketing, and customer service, are done right at the company headquarters itself. Most small businesses even provide these services for free. That’s another advantage.

One of the biggest downsides of serving customers at smaller scales is that you don’t have the same prestige and benefits as serving them at national or regional levels. For example, restaurants and fast food stores aren’t subject to the same federal regulations as restaurants that serve national clients. But even within a given industry, certain industries are much more exposed to local competition than others. Take the case of small restaurants. If you want to stand out from the competition, you’ll need to make sure your business offers something unique that other small businesses don’t.

Small business owners have a lot to gain by focusing on local marketing. Not only do they have an obvious advantage over national competitors, but they can often do things that national firms can’t. For example, they can run successful marketing campaigns with limited resources. They also have less overhead costs than larger national businesses, which makes it easier for them to get the word out about their business. And most importantly, small businesses often operate on the cutting edge of technology, so they can keep up with innovations in their industry.

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