Small Business Success? How to Make Your Business Stand Out Part 2

In creating a successful small business, differentiation from existing business products or services is essential. But how can you add a new twist? Try some of these proven tactics for that extra competitive edge (Part 2 of 2).

6. Added value: Given that perception is everything in marketing (just ask BMW!), adding perceived value to a purchase is a proven method of differentiating products and services. The new car business is a typical example with longer warranties, free air-conditioning, free-servicing and 0% finance all on offer now as brands try to set themselves apart from each other. The real trick with adding value is that the additional items must not cost the business a great deal more in raw materials or time but must have a reasonably high perceived value.

Simple examples in businesses today include offers like: free Coke with any burger purchased, music CDs/DVD movies with Sunday newspapers, one month free with a 12 month ISP contract (actually only an 8% discount when calculated!), frequent flyer miles, 1 week/month free rent on a 12 month lease etc. Adding value can push potential buyers across the threshold (raise the 'buying temperature') into becoming actual customers - something that all successful businesses do every day (often solely through the quality of staff interactions with the target market). The conversion of prospects into customers is one of your primary goals.

7. Location: For entrepreneurs in the real world and through online 'real estate' (e.g. Amazon for small publishers), the location of your business will be critical to its success. In short, 'go fishing where the fish are'. But there's more to the location factor than first meets the eye. For example, it may be of more benefit to be in a more competitive area with a larger target market than a smaller one with few competitors.

It may also be that a certain town or community is missing a number of potential businesses - this is particularly so in the current age with the gradual drift of people to larger cities. Agencies that represent several services are one opportunity in such communities. Or, it may be that your small business needs to be on a busy road. In retail, this can obviously have a huge bearing on success.

8. The Deal: Simply by changing the structure of something - the sale or deal - can have enormous consumer appeal. Examples of this from the 'real world' include buyback schemes after 2 years for new cars at an agreed 50% of the new price, 1 year interest free loans on furniture and electrical, leasing a car through a 'novated' agreement involving an employer and employee, free DVD player in return for one year's DVD rentals, no deposit home loans, 'no docs' home loans and so on.

In each instance, the deal was restructured to make it seem far more attractive or to take out an element of perceived difficulty. In reality, each of the businesses still got what they were after - a sale! All they did was change one aspect of 'the deal' - a mental hurdle for the buyer was thus removed. Upon close inspection, very little was sacrificed in the way of profit to make the deal far more attractive. Even the 'no deposit' home loan involved a higher rate of interest and making the loan applicant use that home construction company - these would easily compensate the company for any 'loss' up front.

9. Quality: Generally speaking, small businesses are operated fairly poorly across the world. It seems that many small business operators have low expectations of themselves, their business and even their clients. This attitude can take many forms: poor business presentation, lack of punctuality, focus on problems rather than capabilities, antagonism towards customers and so on. However, those small business operators that clearly do care about their business earn tremendous repeat business and repeat business is the cornerstone of small business success.

For example, my mechanic is so friendly, fast, flexible and professional that I would not dream of ever taking my car anywhere else again - even after I moved to the other side of the city and it was inconvenient to get to him! Over my lifetime, I will spend thousands and thousands of dollars with him and feel very happy about it. Similarly, I often drive past a local pie shop on a busy road that has a long queue that reaches outside the shop every lunch hour - queues outside a pie shop? Who's ever seen or heard of such a thing?

A great product is not just the actual product though - everything about a business from the cleanliness of the store to the quality of phone communication is a part of the experience of doing business. In a way, because it is done so poorly so much, it makes the good ones stand out even more and customers cling to them with tenacious loyalty! That's what you want from your customers and clients - tenacious loyalty, great (free) word-of-mouth advertising and repeat business. That's the best kind of 'loyalty program' imaginable - great service for happy repeat buyers.

10. Communication: Like the issue of quality above, the power and style with which your business communicates internally and externally is critical to your business success. You and your staff should always answer inquiries with professionalism, helpfulness and 'non-pushy' enthusiasm. Ever been into a store where the staff members are talking to each other about their party last night or ex-boyfriend's annoying habits? Such discussions tell customers that this business is poorly run and that management does not give a damn about the shoppers' experience.

Every detail about a business communicates a message to the world: is the store clean? Are the workers well dressed and groomed? How do staff members talk to each other (I've lost count of the number of times staff have abused each other in front of me and other customers - stores I've never returned to!)? Are staff members polite on the phone? Do staff members know what they are talking about? Will the staff help a shopper with large items to their car and do it happily? Disappointed customers often don't complain - they just never, ever return.

Among the numerous details of running a business, these 'transactional moments' all leave impressions on customers and influence their decision whether to use your business again or to recommend your business to a friend.

Seem important now?

But all of the above requires leadership! The culture of a business is a reflection of the inner world of its leader/s. The buck starts and stops with the leader! Incidentally, most people assume that leadership is about leading others. In fact, a good or great leader leads themselves firstly in terms of discipline, values, hard work, social skills, and knowledge/skill acquisition. Others then naturally follow such a leader.

An implied goal therefore is for the business owner - like you! - to strive to become a 'black belt' in terms of leadership of themselves.

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