7 Ways a Small Business Can Compete Against a Large Business
A question I am often asked is; “How can a small business compete with the larger chains and multi-nationals?”
This is a dilemma for small businesses when they can’t match the budgets and resources of larger businesses. What small business operators underestimate, is that even larger businesses have their challenges as well. Just a different set of challenges.
Having owned a small business and worked in the corporate world in general management and as a senior executive in larger corporations, I learned that it’s not about the size of the business, or the budget, it’s about the quality of the leadership and the quality of the people that make a business great.
Small businesses can compete.
Here’s how!
Entrepreneurs Can Make Better Hiring Decisions
Like many government organizations, larger businesses can be seeped in bureaucracy, particularly around the recruitment process. The larger the business, the more gaps there are in the recruitment process. Here’s an example.
I once worked for a government organization that had hundreds of policies and procedures one of which was their recruitment process.
Because it was a government organization, preference was often given to existing employees when new roles became available. What this meant was, for many years existing employees held onto their roles for they believed they couldn’t be fired. Because there was a preference to recruit from within, there was a complete lack of new blood recruited into the organization bringing alternative ideas and current market experience.
By comparison, entrepreneurs who run a small business can readily go to the open market and employ fresh blood with market savvy ideas and experience. Small businesses are more nimble when it comes to recruitment and able to make hiring decisions more quickly based on your specific needs.
To compete, hire the best people you can and continually invest in their training and personal development.
A Small Business Can Offer Different Type of Employee Benefits
You might be forgiven for thinking that larger businesses have better remuneration packages. Research tells us that employees are not always motivated by money. A small business entrepreneur can offer other rewards such as, days in lieu, birthdays off, flexible hours that fit both the needs of the business and the employees. Employee benefits can be more flexible to attract and retain the right talent.
To compete, find out what is important to your employees, it’s not always about money. What benefits can you offer a larger business can’t?
A Small Business Can Empower Their People
When dealing with larger organizations, you may not always get to deal with the same people depending on scheduling and employee turn-over. Often you get the run-around due to lack of training and product knowledge or bureaucracy itself where employees on the ground must refer to their managers for decisions that can be time-consuming. Unlike a small business, changing something in a larger business often involves red-tape and bureaucratic processes. Employees in the coal face are usually not empowered to make customer-centric decisions. From a customer’s perspective, this can be frustrating whereas, for entrepreneurs who run a smaller business, decisions can be made on the spot.
To compete, learn to delegate and empower your people to make decisions on the ground without having to refer to management. Your customers will appreciate this.
Small Businesses Can Create a Passionate Workforce
There is a direct relationship between employee satisfaction and performance levels.
Passion is the key to job satisfaction regardless of the size of an organization. Creating a culture of committed employees is much more difficult with a larger business where office politics and personal agendas often get in the way. This does not translate well into providing the best customer experience.
A small business entrepreneur can create a passionate workforce by hiring people with great attitudes who are prepared to go the extra mile – because of the culture. Employees become like family.
They also can forge one-on-one relationships with their customers remembering, people buy from people, not companies. If a small business develops personal relationships with its customers, and remembers their name, needs, and wants, those customers will continue to do business with them. With larger businesses, often the service is more impersonal.
When successful entrepreneurs create a united workforce who are committed and passionate about their role, this flows over to how employees treat the customer. Their passion will demonstrate your superiority and make you a company people want to do business with.
To compete, inspire your people and give them credit for their contribution. Involve them on a weekly basis who did well and what you do better as a collective workforce.
A Small Business Is More Agile
Imagine you are traveling along the highway behind a huge truck and there is a roadblock ahead. It takes time for a large truck to stop, turn around and pick up speed again. A small car can stop, turn on a dime, and hit the road again more quickly. It’s the same with a larger business. For them to change their strategy, it takes time whereas a small business is more nimble and agile.
Consider what happened in 2020 during the coronavirus pandemic, where you saw many large retailers go out of business because they could not compete with trending online businesses.
When the market changes, savvy entrepreneurs either anticipate the change or are quick to adapt to change. This is true of small business operators as they don’t have to go through a lot of red tape to bring about change. If things are going in the wrong direction, a small business can adapt to market conditions without a negative impact in a way larger businesses can’t.
To compete, stay abreast of current market trends either through industry groups, forums including networking events.
Smaller Businesses Can Create Their Own Niche
Larger business can’t be everything to everyone. If a small business operates in a niche market, in a unique location, or offers a unique service, this can help them stand out from bigger competitors. This is one of the reasons why developing a buyer persona and value proposition is so valuable as it helps smaller businesses understand who their ideal customers are and how they can differentiate themselves from their competitors.
To compete, differentiate yourself. Carry items that are not readily available somewhere else. If you are a service business, offer a service that’s hard for larger businesses to replicate.
A Small Business can Deliver Better Customer Service
If you believe people buy on price alone, why do some people buy a $1,000 watch when they can buy a $10 watch. Why do others buy a $1,000 suit when they can buy a $100 suit? Consider your own buying patterns. Do you always go for the cheapest, the most convenient, the best quality, or do you buy because of the person serving you?
Where a big business can outspend you on marketing, it’s your ability as an entrepreneur to provide superior levels of customer service which is the real differentiator. When competing with larger businesses, remember, it’s the personal touch that counts. Remembering a customer’s name, remembering their buying preferences, going the extra mile, and thinking outside the box all keep customers loyal.
A small business entrepreneur is not locked into one way of delivering a service. When you deliver a high quality of service, customers trust and want to support you.
To offer exceptional levels of service, ensure you involve all your employees asking for their ideas. If they are part of the solution, they will perform better at the coalface. Employees like feeling part of a team, part of a family, and knowing how they perform in their role makes a difference.
To compete, involve your people in designing a customer service charter, a charter that serves as a guiding compass on how to deliver exceptional customer service.
If you are a small business struggling to outsmart your competitors, tap into some of our FREE resources, or consider hiring a business coach or life coach to bring your business back into perspective.

On a Final Note
By using these strategies, you can compete with the big guys and still remain profitable. You do not have to do it alone. Hiring a business coach or consultant can help you eliminate the pitfalls of starting a business from scratch.
Learn how the Strategez for Success Coaching Model helps you master the 7 Steps of Entrepreneurial Success. Contact us now or set up your FREE Discovery Chat here to find out if starting a business is right for you and you are a right fit for us.
Download some of our FREE cheat sheets and toolkits here to get you started. Learn how to thrive in business, not just survive!

Learn Powerful Networking Strategies And Enjoy The Success You Deserve!
Success Strategez
Social Feed
[dc_social_feed id=”6701″]