The growth of your business may be limited by several factors, including your available capital, the size of your market, and the efficiency of your operations. Many small businesses could not survive without external financing, and even then, they may only be able to grow slowly.
Some of the challenges that small businesses face these days include the following:
- The fast pace of change in the business world
- Increased competition from larger businesses
- The need to constantly adapt to new technologies
But it’s important to remember that there are ways to overcome these limitations and achieve significant growth.
The importance of business growth
Small businesses are the backbone of the American economy. In fact, according to the Small Business Administration, small businesses make up 99.9% of all businesses in the United States. That’s a lot of businesses! But what does it mean to “grow” a small business? And why is it important?
Let’s take a look at some statistics. In 2016, the Gross Domestic Product (GDP) of the United States was $18.5 trillion. Small businesses accounted for $1.6 trillion, or 8.6%. That may not seem like much, but remember that small businesses make up 99.9% of all companies in the country! So while they may not be responsible for a huge chunk of GDP, they are responsible for a disproportionate amount of economic activity.
Not only that, but small businesses are also responsible for creating jobs. In fact, according to the SBA, small businesses have created 64% of new jobs in the United States over the last 15 years. That’s a significant impact!
Growing your small business
As a small business owner, you may wonder how to create a sustainable competitive advantage against larger businesses. The answer is not as complicated as it may seem. Follow the strategies below to give your small business the best chance at success.
Invest in your employees
Many business owners forget that their employees are their most important asset. Investing in employee training and development will not only make your employees more productive, but it will also make them happier and more likely to stick around. It would also be ideal to invest in your employee’s health. For instance, partnering with a professional general dentist to offer dental benefits to your employees will show that you care about their well-being. This will result in a happier and healthier workforce, which is good for business. It will also reduce employee turnover, which can be costly for businesses.
Focus on Quality Over Quantity
The first step to creating a sustainable competitive advantage is to focus on quality over quantity. This may seem like an obvious solution, but it’s one that many small businesses overlook in favor of trying to keep up with the competition. When you focus on offering high-quality products and services, your customers will be more likely to remain loyal even when the going gets tough. Plus, word-of-mouth advertising from satisfied customers is one of the most powerful marketing tools you have at your disposal—and it’s free!
Innovate Continuously
For your small business to thrive, you must continuously innovate. This means always being on the lookout for new ways to improve your products, services, and processes. It also implies being on top of industry trends so that you can react to and modify them as necessary. Some of the innovations you can apply to your business include:
- Adopting new technologies can help you improve your efficiency and reach more customers.
- Offering new services: This can help you tap into new markets and generate more revenue.
- Launching new products: This will help you stay ahead of the competition and keep your customers coming back for more.
By continually innovating, you’ll not only maintain your competitive advantage but also position yourself as an industry leader.
Build Strong Relationships with Your Customers
Finally, one of the most important things you can do to create a sustainable competitive advantage is to build strong relationships with your customers. This involves providing excellent customer service and always going above and beyond to meet their needs. You must also keep them updated on your latest products, services, and promotions. When your customers know they can count on you, they’ll be far more likely to stick with you—even when a competitor tries to lure them away with lower prices or flashy marketing campaigns.
The bottom line
Creating a sustainable competitive advantage as a small business owner is essential to long-term success. By focusing on quality over quantity, continually innovating, and building strong relationships with your customers, you’ll be well on your way to achieving your goals. So what are you waiting for? Get started today!
