2012 SMB Strategy: Survival of the Smartest

Small businesses can stand tall among the retail giants. Here are three ways smaller shops can take on the big boys of business. 

It’s not easy running a small business in the world of big box stores and mega corporations. Yet, more and more small business owners are proving that it’s not the size of your store that matters most. It’s what is on the inside that counts.

For small to mid-sized businesses (SMBs), the challenge is to compete wisely. Rather than trying to tackle the competition head-on, focus instead on the smaller details that will give you an edge. What products are the big stores in town missing? What clientele are they overlooking? Mega stores cast such a wide net that it’s virtually impossible to offer detailed product knowledge and personalized customer service. That’s where the local SMB comes into play.

Here are some ways to help your SMB not only survive, but thrive.

1. Carve out your niche

Put your SMB on the map by narrowing your focus. Pick just a few yet deep product lines. Stock as much as you can of the top sellers but carry some of the unique items as well. One of the greatest ways to create your niche is to bring your passion to work. Believe in the products you carry and use them yourself. By doing so you’ll know first-hand the pros and cons of each item and you’ll be able to share that knowledge with your customers. This practice builds confidence and trust between you and your customers, which you’ll be hard pressed to find in most large stores.

2. Remember: customer service is king

SMBs can crush the competition when it comes to customer service. Get to know your customers by name. Remember what they buy. The more you know about them the easier it will be to suggest additional products that they may benefit from or simply enjoy. The number one goal should be to create a convenient and personalized shopping experience each and every time your customers come in. The customer experience can be further improved by streamlining business operations at the check-out line and in the back office through the use of an integrated point-of-sale system. Not only can a POS system remember your customers’ shopping habits for increased customer service, but this type of technology offers time and money saving features that level the playing field versus big box stores, making employees more productive and customers happier.

3. Get Social

If you still haven’t embraced social media, it’s time. Businesses that are using sites like Facebook, Twitter, Pinterest, LinkedIn, and more are getting closer to their customers than ever before. Social media truly levels the playing field in terms of customer contact and cost. In most cases, joining these sites is absolutely free. If you don’t want to manage this area of your business yourself, hire an expert. Like traditional advertising, a well thought out plan will make the most impact.

For SMBs everywhere, the best strategy is to simply have one. Identify and capitalize on your strengths. Understand and respect your limitations. By practicing these basic principles, you might just be one of the success stories of a small business beating the odds.

If your SMB is a restaurant, check back soon for an overview on a revolutionary product that improves speed and accuracy by enabling wait staff to input customer orders tableside via an Apple iPad.

The Top 5 Things to Consider When Starting a Retail Business

Retail rules the world. According to The National Retail Federation, featured in Entrepreneur.com, more than 1 million retailing companies operate more than 1.4 million retail establishments in the United States alone. While most are traditional brick and mortar retailers, there are also other retailers such as e-commerce, mail order, automatic-merchandising (vending) machines, and direct retailing (door-to-door and home party sales).

If you’re thinking about opening a retail store of your own, consider these five things first.

1. Weigh the pros and cons.

Depending on who you talk to, this list varies greatly. Here are just a few ideas to get you started.

Pros of Retailing and Business Ownership

·         Satisfaction of building something from the ground up

·         Research and assistance from trade associations

·         Benefits of holiday sales figures

·         Trade shows and buying events

·         Being your own boss

·         Selling merchandise you have an interest in

·         Creating a pleasant atmosphere

·         Hiring and training loyal employees

Cons of Retailing and Business Ownership

·         Large cash investment at startup

·         Long hours and little (or no) pay to start

·         Little or no vacation

·         Challenges of post holiday sales figures

·         Dealing with difficult customers

·         Not having what your customers want

·         Managing every aspect of the business yourself (marketing, buying, bookkeeping, etc.)

·         Difficult task of predicting and staying ahead of the trends

·         Covering the cost of damaged merchandise and theft

2. Do you have what it takes to be in retail?

Being in retail takes a certain type of personality and honestly evaluating yours may be the best tool in determining whether retail is right for you. Ask yourself these questions.

Are you a multi-tasker?

Managing product, employees, customer, marketing efforts, landlords — you name it, it’s your job.

What is your tolerance for risk?

Retail is all about being in the right place at the right time with the right goods. If you’re off point, you’ll need to able to think quickly on your feet and make adjustments to stay afloat.

Are you comfortable being alone? Do you like people?

At the onset, you may be the only one running the show. Make sure long, lonely hours won’t be the beginning of the end. You also need to like the general public. Not every customer will be a peach but in the end your goal is to make them happy so they’ll return to your store. This may take more resilience than you think.

3. Do your homework.

Like any start-up, a well thought out business plan is key. You’ll need to perform thorough market research, including a trend analysis, and demographic breakdown before any real decisions can be made.

4. Location, location, location.

Location is not only important, it’s absolutely critical. Cost, accessibility, visibility, and local competition are important factors when choosing your locale. Ultimately, you want to find the right spot and make it yours inside and out.

5. Cash register vs. POS system?

The one item in a retail store a business owner absolutely must have is a cash management system of some sort. Whether it's a traditional cash register or state-of-the-art point of sale (POS) system, every store needs a machine to process sales.

With the advancements of the POS system, your cash register can be more than just a safe place to store money. A POS system has the ability to quickly process customer transactions, accurately keep records, analyze your customer data and employee sales, instantly run reports, and so much more. Ultimately, a POS system can save you a lot of money.

POS Systems offer:

·         A wide variety of detailed reports for a top level view of your business

·         The ability to track inventory more efficiently

·         Employee management

·         Greater order speed and accuracy

A great option to consider is a Harbortouch POS system from First Merchant Services. We offer free setup and implementation, including installation of all hardware and training for all POS customers. Complete customer service and technical support are available 24/7 by phone and email. The Harbortouch POS hardware is backed by a lifetime repair/replacement warranty for as long as the merchant maintains a merchant account. An approved merchant account and monthly service agreement are required to participate in the free POS program. For more information, visit our retail point of sale systems page.

Check back soon for a discussion on creative ways to take on the ‘big boys’ of business.

Small Business Spotlight: Hubbard’s Basket Cupboard

Congratulations to Sonja Hubbard of Hubbard's Basket Cupboard in Portage, MI! She is the grand prize winner in our giveaway and will receive a 16 GB Apple iPad 2 with Wi-Fi. As a company that believes in and supports small business, we’re pleased to shine the following spotlight on Hubbard's Basket Cupboard:

What inspired you to create Hubbard's Basket Cupboard?

Sonja: I was inspired to start the business by my husband and children. I have a love for weaving them and my house started to become full of them. My friends and family really enjoyed the baskets, but urged me to share with everyone.

What is your company’s mission?

Sonja: I would say that my mission is to weave high quality baskets, customized to meet the exact needs of the customer. 

Has basket weaving always been a hobby/skill of yours? 

Sonja: Basket weaving has not always been a hobby of mine. All my life I have made various crafts and really have enjoyed it. A friend of mine taught a few basket weaving classes at my church and I never thought I would be able to make them like she did. But I took what she had taught me and basically taught myself all the rest. I was hooked.

What do you find most rewarding about being a small business owner? What is most challenging?

Sonja: For me, owning my own small business is rewarding because I can be creative and contribute to our family income, without being away from my family. There are many challenges to it as well. My biggest challenge is juggling my time to meet deadlines and making sure all of my customers are satisfied.

Thanks, Sonja, and congratulations on being our giveaway winner! We’d also like to congratulate our runners-up who will each receive a $100 Amex gift card: Justin Anderson of Anderson Farm in Lowry, MN and Thomas F. Maturo of Maturo Realty Inc. in Vineland, NJ.