‘Designing Strategies’ eNewsletter
July – August, 2017 Volume 14 Issue 78
Any small business owner or manager who has been operating over the past ten years has experienced big time changes coming at them. It is no secret that changes and external influences on small businesses are a constant we need to prepare for. Any not willing to do necessary zig-zagging required to change strategies or pivot on a dime may well be gone now. We have been facing more than a few significant external changes, trying to stay afloat. Let’s limit this discussion to just two of the enormous influences on small business es and their success. Two of those influencers and disruptors I suggest addressing here are: the shift in consumer behavior and competitive change. These two can make a major impact on every business, large or small.
How Shifts in Consumer Behavior Influences Small Businesses
Throughout history, control of buying and selling has shifted back and forth between suppliers and consumers. It doesn’t matter if your business is large or small, or you are a solo-preneur. Your business will be affected. Right now, the Control ball is in the Consumers’ court. They are setting the rules under which they will buy – or not buy your products or services.
No doubt about it, consumers have planted themselves firmly in the driver’s seat of today’s economy. How do consumer behaviors push all the buttons in their favor right now? Here are some of the ways today’s consumers are in the driver’s seat:
- Demanding better, higher levels of service
- Looking for lower cost for your products or services
- Wanting to get more and pay less
- Every sale or project begins with extensive on-line research
- Expectations are set at a higher level – better, cheaper, faster
- Customer experience expectations are much higher
- Far more shopping is occurring online than ever before
- Retailer brick and mortar stores seen more like showrooms
- Consumers test out items found online in stores with no guarantee of a sale
- Expectation that technology will improve the customer experience
Pushy, aren’t they, today’s consumers? Like it or not, right now they are in the drivers’ seat and in charge. They control the acceleration, brakes and turn signals. They are setting the demands and level of standards, not us. How quickly they make a purchase – assuming they do make a purchase, and where they decide to buy are all under their control.
How Major Changes in Competition Can Influence Small Businesses
Unless you are fortunate enough to have some awesome and as yet unheard of new service, gadget or gizmo to market to people, you have competition. Competitors are everywhere. Some are a part of your industry already. Others are branching out of their own overly competitive arena and forcing their way into yours. It no longer comes from a few other shops, offices or studios in your local region. They can be coming at you from entirely different industries or on the other side of the globe.
Wherever and whenever competitors turn up, they are going to exert additional influences over your small business. Here are a few you should be aware of. They can make major changes in your ability to survive if you don’t plan to deal with them:
- Technology helps businesses compete at higher levels than ever before
- Internet access helps small businesses compete on a global scale
- Technology and Internet also increases numbers of competitors
- Websites, social media and other Internet channels level the playing field
- Competitors with the best customer service and experiences will pull ahead
How Can You Better Control These Influences on Small Businesses?
First of all, just be aware of changing influences and disruptions all the time. Use strategic thinking and planning to adapt. Never just ignore changes and their ability to influence your small business. Hoping will not make them go away. That’s not going to happen. By the time you realize that approach, or non-approach, isn’t working, it may be too late to pivot in another direction and save your business. New strategies and tactics are all that will help you survive.
The More for Small Business website offers some steps for doing a competitive analysis and sources of useful information for that exercise. While it may all seem a bit daunting, it is something that needs done at least once each year. You need to know your business arena, which competitors play in it and what their rules are.
Another useful source of information to help gauge competition offers a number of strategies for gaining broader range of information. These strategies go beyond checking out your local, regional or national competitors. Information from these sources is more on an industry level; what’s happening in your world at large. You may already be using some of these strategies, but the question remains: are you using them to gather competitive intelligence?
It is clear that we all need to be aware of changes in customer behaviors and competitors, and how they put significant influences on our small businesses. Recognize and understand where your competition comes from. Put strategies in place needed to keep your small business in a positive position to deal with changes in customer behaviors and competition. Neither one will go away anytime soon. Either one can easily make or break your small business if you aren’t paying attention.
