Competing With Big Companies: How Can Small Trades Businesses Stand Out?

In the UK, the number of businesses facing insolvency rose by 52% in just two years, reaching over 30,000 in 2023. From the impacts of COVID-19 to the destabilised economy, the world of commerce has faced a lot in recent years. But, just because times are tough doesn’t mean that your small trade business can’t thrive.

The trade industry is one that’s built on essential products and, with less money often leading to more DIY approaches, you might find yourself thriving even when the economy is down. 

Your most prominent threat as a small business is more likely to be the big chains. To carve out a space as a local brand and give yourself the retail advantage over household names, take a look at these tips.

Optimise Your Google Business Profile

The age of the internet has helped level the business playing field. Now, you don’t always need millions in the bank to reach a global audience, helping small companies compete with big companies.

One digital tool you should take advantage of if you haven’t already is Google Business Profile. This allows you to list your trade company with the world’s most popular search engine, adding your business to their map and helping you gain more visibility for local searches. 

When your audience searches ‘trade business near me’, for example, if you’re nearby you’ll pop up right at the top of the search results in Google’s local business box.

To make the most of your Google Business Profile, optimise your listing by:

• Adding your current business address

• Adding your opening hours

• Providing relevant contact details and links to your website/social media pages

• Encouraging positive reviews

• Writing an informative business description

• Adding SEO keywords to your business description

• Publishing posts and use call-to-action buttons

The more accurate the information, the more likely you are to show up to the right audience, so spend some time getting your profile right.

Build Up Your Positive Reviews

Make your retail business stand out with positive customer reviews. We’ve already mentioned that great reviews can boost your Google Business Profile, but that’s just one advantage of gaining 5-star feedback.

Reviews can help your small trade business compete with big brands by:

• Building trust and credibility with your audience

• Influencing purchasing decisions

• Giving you an advantage over similar competitors

• Boosting customer loyalty

• Gaining visibility through SEO benefits

With 93% of consumers making purchase decisions based on reviews, this isn’t a marketing technique you’ll want to skip.

If you’re looking to gain more reviews, try encouraging customers to leave feedback with an enticement. This could be a discount on their next shop or the chance to be entered into a prize draw, giving your loyal customer base a nudge to review your business. 

You can also use review management software to boost your online reputation. There are even specific tools designed to help retail businesses which send automatic reminders to leave a review after a customer has made a purchase. 

Use Outsourcing to Offer Big Business Services

You might feel that competing with big business services isn’t an option for your smaller team. But, with outsourcing, you can change that.

Outsourcing involves paying a third-party business to take over certain processes or tasks. So, for example, if you want to offer next-day delivery but don’t have your own fleet of cars to make this happen, you could outsource your deliveries to a company that does. You could also outsource your customer service, allowing you to handle hundreds of queries a day without any stress.

As soon as you start working like this, you don’t have to forego services your customers want just because you’re a small trade business. You can gain the retail advantage over your local business competition and offer big-brand services with the appeal of a small business.

Test Out New Trends

When it comes to how to compete with other businesses, being small has its perks. One advantage you gain over your household name competitors is that you can be agile, snapping up new trends quickly and pivoting your services to suit ever-changing demands.

For example, if you keep an eye on social media, you might see that a certain brand of paint has gone viral. Rather than having to go through a whole approval process and seek approval from the CMO, you can quickly put in an order and start stocking the product within a matter of days.

This ability to pivot to meet customer needs gives you a unique opportunity for innovation and to market yourself as an on-trend retailer. Just be sure to keep an eye on which products are a customer hit by monitoring social media and keeping an eye on DIY news.

Learn From Competition Market Analysis

Your competitors can be a source of inspiration and knowledge. From taking tips on how they’re successfully engaging their audience to spot aspects of their business that customers aren’t happy with, use what other brands are doing to your benefit with competition market analysis.

You can hire professionals to make market analysis a breeze. They can help to find competitors of a company, access paid-for data, and audit the business models of big brands to learn what they’re doing well and find the gaps that your small business could fill. 

If you’re on a budget, there are ways to analyse your competitors yourself, too. Some DIY approaches include:

• Determining exactly what products your competitors are selling

• Looking into competitor pricing

• Checking out delivery and returns options

• Surveying target customers on why they would pick big-name brands

• Researching marketing tactics of your competitors (e.g. what ads they’re paying for and any events they sponsor)

• Analysing brand reviews to spot strengths and weaknesses

If you know that a competitor is doing well, the best thing your business can do is find out why with competition analysis.

Use Your Local Business Advantage

Though it can feel challenging when you’re competing with big businesses, being a small, local trade business can be an asset. 1 in 3 British consumers are already trying to actively shop small, and there are lots of ways that you can use your size to an advantage when winning over the remaining two-thirds. 

Customer service is one of the biggest draws of small businesses. By training your team well and providing a friendly, personal approach with quick service, you instantly give your audience a reason to choose you over big brands. Embrace a more hands-on approach, getting to know regulars by name and offering contact cards with every sale in case your customer has follow-up questions.

You’re also likelier to offer expert advice. With a keen knowledge of your products and how to use them, your customers will feel more confident that what you suggest is the right solution. Be sure to market this as an advantage.

Small businesses can differentiate themselves, too, with unique selling points. From quirky goods to values that stand out from the crowd, give your brand a personality by doing things differently. 

Final Thoughts

As a small trade business, gaining the retail advantage over big brands can be tricky, but it isn’t impossible. With these tips and plenty of elbow grease, you can gain a reputation that gives your brand the upper hand.

For more DIY and trade news, be sure to keep up with the Insight DIY community.

Source : Kelly Edwards Interior

Image : shironosov / iStockphoto.com / 1329039195

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