Time for David to beat Goliath once more.
The business landscape changed. The victims are traditional small and medium sized businesses. Amazon killed retail. In the legacy landscape, market share was divided up by the likes of Kmart, JC Penny, Macys and family-run department stores. As they disappear, most people cannot name the second place behind Amazon.
GrubHub is killing to the restaurant industry, taking up to 30% commission per order. Restaurants wish they had a 30% profit per meal. Netflix killed the local family-owned movie rental business and is dealing a blow to local cinemas.
Tech companies dominate and push the barrier of entry so high that a competitor stands little chance. Anyone remember when Jet wanted to take on Amazon?
Small Business Can Still Succeed
Success for small and mid-size business is still possible, it just got harder. It requires a company to be nimble and leaves little room for mistakes. Companies need a thoughtful strategic plan, which ironically includes the very tools that the disruptive tech giants created.
Neighborhood stores and malls occupied valuable real estate only decades ago. Companies must now occupy real estate in consumer’s minds. This requires niche target marketing that didn’t exist back in “the good ole” days. It require precision messaging and an ease and flexibility to drive the sale. You may be in the neighborhood, but your consumer is most likely to find you online. You best be ready.
The same companies that have made it difficult in the first place now provide the data driven analytics, targeted digital ads and the hosting of your online storefront. As they get richer, family businesses and entrepreneurs fight for a slice of the pie. Here is the new task list any business must conquer.
Stake out real estate in consumer’s minds:
- Brand your company in a memorable way
- Determine your most likely customer, target them with precision. (don’t waste money on others)
Make it easy for customers to reach you:
- Make your ads relevant, timely and clickable
- Link ads to specific landing pages on your website
Make shopping easy and convenient:
- Your website must be engaging and interactive
- Easy click communication and check-out
For example, if you’re a restaurant, take orders on your website, and run click-on ads in your delivery area to the drive traffic to your website and away from GrubHub. A car dealer can target those who either searched for a car or visited a dealership (yup, we know who did). Times are changing and only those companies will survive that adapt to this new digital landscape.
Don’t let the tech giants feast on the carcass of small business. It’s time for David to beat Goliath once more.