5 ways for your small business to stay competitive against the big players

As customers flock to the doors of national supermarket chains like Woolworths and Coles in droves, it can often feel like the little guys are being forgotten.

The vitality of the Small Business industry, which accounts for about a third (33.1%) of the total industry value of the Australian economy and employs 4.7 million Australians (37.6% of the working population), is a matter that concerns us all. At times, small business owners can get caught up in the day-to-day minutiae of running their business — and with good reason! As we move into the swing of things in 2017, we help you look at the bigger picture to stay competitive against the daunting conglomerates.

Keep your employees happy

Your employees, after you, are the driving force behind your business. And humans, it turns out, were not all made for 9–5 workdays. Psychologist Ron Friedman says that our concentration highest in the first 3 hours of our day; encourage your team to do its most important and challenging work in the first three hours of the day (if applicable to your business), and whatever you do, don’t schedule meetings in the morning (there is nothing more damaging to productivity). Perhaps some of your employees may do their best work in a different environment or be night owls: explore the options of remote working or more flexible hours if it’s work that doesn’t need to be done in the office.

A friendly warning to not to micromanage! Small business owners may be tempted to leave their mark on every single aspect of a business. However, studies show that a neat office doesn’t necessarily give rise to high productivity: in fact, they work best when they have the choice to do what they like with their space. Do you run a very tight ship? Consider loosening the reins and it may reward you in boosted levels of productivity and trust, helping you retain great staff and maximise sales.

Manage your cashflow

“Understanding your cash flow will reduce a lot of the stress associated with running a business; with proper forecasting, you’ll be able to see when and where cash flow issues are likely to strike.”

— Sophie Andrews, Director, The Account Studios

We touched upon this one earlier this month, and we’ll say it again. As we become more acutely aware of the cashflow crisis we’re finding ourselves in, handling cashflow is vital to the success of your small business, with 77% of business owners planning to fund the growth of their business through this means. According to RSM Australia, we’ve lost sight of the importance of managing cashflow. Your actual performance should be compared regularly to your cash flow budget, for starters.

It’s never too late to pick up your game with the following quick tips: reducing the level of stock (ordering more regularly from suppliers); reassessing accounts payable processes and other options; avoiding payment extensions and being more upfront about payment terms with customers; improving upon debtor delays; invoicing on time; and planning ahead for rainy days. “Understanding your cash flow will reduce a lot of the stress associated with running a business; with proper forecasting, you’ll be able to see when and where cash flow issues are likely to strike,” says The Account Studio director Sophie Andrews.

Mentor and be mentored

Having work experience in a small business plays a huge factor in future success. If you’re a very young business, you would be wise to look to veteran small biz owners for indispensible tips and advice; and if you’re the veteran, investing in the small business owners of tomorrow is a very worthwhile and fruitful use of your time — many work experience programs use this process to select potential staff candidates.

Zoi Kokoti and her partner Stephen Lowery, owners of Eire Café, metREDARC Ceo Anthony Kittell and his wife Michelle when they entered into the Telstra Business Awards and moved through to the national stage together. While their businesses are markedly different, Kokoti says: “fundamentally, the same principles apply: you have to try to make money, you have to manage your cash-flow, deal with staff and you have to grow your footprint. The product might be different, your market may be different, but the foundations are the same.” Networking and striking up friendships with other successful small business owners will expose you to a new realm of contacts, knowledge pools and resources at your disposal.

Embrace technology

In 2017, it is virtually assumed that all SMEs have migrated to online platforms or embraced digital technology in some form or another. Four of five SMEs across the globe reported higher sales, lower costs, easier access to information, and improved customer service and productivity after adopting technology in their business model. While the statistics speak for themselves, there’s still a long way to go in embracing the full offerings of online platforms for SMEs.

One company that has been making waves has been Deputy, an online employee time sheet tracking software. Their product totally does away with cumbersome, time-consuming paperwork and allows you to fully roster shifts, track time and attendance, organize payroll, streamline communication and assign tasks, all with intuitive UX interface design. In the same vein, Spotcap’s fuss-free and paperless application process is designed to help SMEs get what they need: access to the funds (often within 24 hours) so they can get their business rolling and put the funds where they need it most.

Remember your raison d’être: your customers

Business coach Nigel Collin says that competing with the big players in terms of price just “isn’t going to happen”. Instead, you should refocus your energy on giving “your customer what they truly want. Good old fashion service, a sense of feeling wanted, appreciated, quick response times, expert advice, a friendly face and extra value.

“In a world where most buyers know more about your product than you do and where they have already shopped around on price, tap into what they really want because it’s those small touches that will win their loyalty and you can do that better.”