No question, owning a small business can mean greater challenges than running a large one or a chain store.
Part of your growth strategy is holding off new competitors (businesses newer than you) while you take on the more-established competition with more resources. This is easier to do in some industries than in others, and we can all learn from one another.
But look to the coffee world for a second. Apparently, being David doesn’t mean sure defeat at the hands of Goliath. This Seattle Times article takes a look at how independent coffee shops are thriving despite the presence of nearby Starbucks outlets. In fact, sometimes, proximity to a Starbucks seems to help these entrepreneurial upstarts.
Not long ago, conventional wisdom said that having a new Starbucks down the street was a death knell for an independent coffeehouse. But here in my backyard (Orange County, Calif.), I can think of several instances where a Starbucks and an independent shop thrive in close quarters. I’m sure there are several in your areas, as well.
What do retailers attribute this to? Independents don’t face the constant scrutiny and criticism that Starbucks shops do. And they often benefit by comparison, when customers who think Starbucks is too “corporate” appreciate their individuality or funky air.
The lesson here: If you can’t beat the giants at their own game, find a way around them. You can’t beat the Wal-Marts or Targets of the world on price, so don’t try. But you can open smaller, more niche-oriented businesses and top the big guys with better service, with more expertise, and with creating an atmosphere where the customer feels that (like they sung at the beginning of the Cheers TV show) everyone knows their name.
None of the entrepreneurs in this article have any delusion that they’re ever going to beat Starbucks — and that’s fine. They’re plenty happy to have found their slice of the pie.
Does your company compete with a bigger player? How do you handle it?
Rieva Lesonsky