Competing With the Big Companies

It happens in every town. A big box store moves in and small businesses close. But not all. Some do survive and actually thrive.

Some time ago I met with the owner of a store selling mechanized lawn and garden equipment. Business is good despite the nearby Home Depot selling similar equipment. Nan’s store is in an affluent area, but is not even visible from the busy nearby road.

Walk into the store, though, and you find a spotless, well lighted, and spacious store with merchandise attractively displayed. The staff is warm and helpful, and they know their merchandise.

The myth, Nan told me, is that the big box stores are cheaper. She has top quality products that are price competitive with similar products at Home Depot, and she provides excellent advice and top notch service and a repair facility.

In spite of location, and despite the mindset created by big box store advertising, she does well through modest advertising, and lots of referrals by happy customers.

Smart business owners like this one can stand up to big box competition. But it takes some or all of these success factors:

1. Know your niche market, and carry merchandise appropriate to the market.

2. Don’t try to compete on price.

3. Keep a clean, well maintained, uncluttered, well lighted, and well appointed store.

4. Display merchandise attractively.

5. Create a culture with employees where: employees are enthusiastic and love coming to work, employees know and love the merchandise, employees love the customers, employees are empowered to do what is right for the customers.

6. Select a good location for your store to ensure sufficient traffic.

7. Provide outstanding customer service.

8. Be creative in promoting your store.

9. Exercise excellence in all you do.

10. Have sufficient access to capital so that you never have to cut visible corners. This can be from investors, floor plans, lines of credit, or your personal savings.

Other than location and capital, how can the big box store compete against these factors? But, it takes constant work and attention to every detail.

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com
will@limkemann.net