It’s a very tough time to run a small business in the UK. Growth is stagnant, the tax environment is hostile, and pressure from larger, multinational competitors is considerable. Consumers increasingly expect a service that’s rapid, bespoke, and trustworthy – because that’s what’s provided by Amazon, and others.
For a local business to prosper, it will need to lean into the natural advantages that come with being small and nimble, and minimise the disadvantages. Let’s take a look at a few practical tips to consider.
Build genuine community ties
To begin with, building your brand recognition locally is vital. This is something that non-local competitors will always struggle to do, because they won’t have the same on-the-ground resources and knowledge to call upon. You might sponsor a local event, a sports team, or a newspaper, or support a worthy local cause. If an iconic building is in need of support, you might sponsor a fundraising event, matching donations from the local public – up to a certain amount.
Offer faster, more reliable service
When customers feel that they can’t rely on you to deliver, they might begin to look elsewhere. If you’re shipping locally, then offering same-day delivery might be feasible – and it will allow you to stand apart from the competition. Don’t try to compete on price alone, in other words.
For example, if you’re running a florist, then you might charge extra for last-minute orders. Customers who are in desperate need will often gladly pay for the convenience.
Use customer feedback to drive change
Perhaps the greatest advantage enjoyed by a small, local business is the rapport it might develop with its customers. If you received constructive feedback about a certain aspect of your business, then you might be able to make the necessary tweaks to address the weakness without too much hassle.
For example, if you’re running a small cafe beside a train station, you might find that you can adjust your opening hours to capitalise on the first, and last, trains.
Listening to customers isn’t just a way of getting an idea of where the demand lies. It will also send a message that those customers are valued, which will drive loyalty in the long term. It’s this loyalty that will keep your business afloat when the economic environment becomes challenging.
Partner with other local businesses
It might be that there are other local businesses whose services will naturally complement your own. For example, that small cafe we mentioned might partner with a local bakery, delivering products and services that neither could offer alone. Being able to communicate closely with local suppliers might also keep you aware of changes in demand, and potential disruption that might need to be managed.
Keep adapting, not just reacting
Successful small businesses aren’t just able to respond to a changing environment. They’re also able to anticipate those changes, and keep their offering flexible enough to cope with shocks that aren’t anticipated. For example, if your restaurant offers a takeaway service, it might be better able to cope when demand is inconsistent.
