updated 3/1/2024
Is it possible for small businesses to thrive and survive today? Well, it depends on who you ask. Some people have a more pessimistic outlook and think that Amazon and other big-box retailers have squashed any possibility of smaller brands making a profit. However, at Retail Control Systems, we believe there are many benefits to owning a small business that big box retailers don’t have.
73% of consumers say small businesses offer better and more personalized customer service than corporations. – Semrush
We’re not minimizing the challenges that small businesses face. We want to highlight some of the unique advantages of small, locally-owned operations and why they do succeed.
1. Community of Consumers
Most people prefer to take advice from close friends rather than strangers. Why? Because there is a level of trust. This same concept can be applied to a small business. Small businesses can build a community around them in a way that large corporations can’t. Customers come to know the staff, the owners, and other people behind the scenes and build relationships with them. People with a personal relationship and connection to a brand are more likely to support them. Business owners have an opportunity to embody their brand and allow customers and prospects to get to know them.
In the aftermath of the COVID-19 pandemic, societal divisions, fueled by politics and contentious issues, have made a notable shift in consumer behavior, even leading individuals to sever ties with once-beloved brands.
82% of shoppers express a desire for a consumer brand’s values to align with their own, and they’re willing to make purchase decisions based on this alignment. Three-quarters of shoppers have admitted to disengaging with a brand due to a perceived conflict in values. – Consumer Goods Technology
Consumer choices are influenced by a complex interplay of price, product quality, and brand values. Consider the trajectory of Apple, which, starting in a garage and has evolved into a global technology powerhouse. According to insights from psychology experts, Apple’s success is rooted in strong brand identity, particularly its association with innovation—a connection consumers find deeply resonant.
In this landscape, small businesses hold a unique advantage. They can daily embody a distinctive brand identity, forging genuine connections with customers. While mega-corporations may struggle to maintain a personal touch, small businesses thrive in providing an authentic and relatable brand experience, aligning seamlessly with today’s discerning consumers’ evolving priorities and values.
2. Advantages of a Small Team
Teamwork makes the dream work and lays the groundwork for success. While large corporations often struggle to foster genuine team bonding, smaller businesses excel in cultivating strong coworker relationships. A harmonious team breeds a thriving business.
Operating with a smaller team may appear as a limitation, but it brings forth invaluable benefits that fuel the growth and sustainability of a small business. Within a compact team, each member assumes a clearly defined role, alleviating concerns of overstaffing or employees flying under the radar and not meeting expectations. As bonds strengthen within a smaller team, the potential for advocacy grows. The nature of a close-knit team facilitates the sharing of personal lives, allowing coworkers to connect on a deeper level. This shared understanding not only hosts a supportive environment within the workplace but also creates a unique platform for team members to advocate for one another’s needs.
3. Freedom to be Flexible
Your business is in your hands if it’s small enough. A unique advantage of a small business is that you can quickly change with the evolving retail landscape. Not only because you have the community connections as your advantage but also because you don’t need to wait for approval from board members. It can take weeks or months – sometimes even years – to get specific projects off the ground or change the brand. As a small business, you don’t have a board and many teams to consult with before making a decision. You could change your logo or brand colors overnight if you wanted to!
NCR Counterpoint also offers remarkable flexibility, allowing you to effortlessly adjust pricing, modify customer profiles, and customize the receipt delivery method—all with just a click. Explore the diverse capabilities of NCR Counterpoint in our Tips and Tricks video for a more in-depth look at its flexible features.
4. Higher Quality of Service
Once again, circling back to the level of trust established with a small business in a community. With the added touch of personal connections, consumers can ensure your quality of service. Leading them to choose your small business over corporate. People often choose to frequent a smaller establishment simply because they trust that the quality of the food, services, or products will be better. It’s why people who want a delicious cheeseburger will go to the town’s best pub instead of McDonald’s or pay more for a haircut and highlights at a salon instead of going to SuperCuts. Many big companies focus more on profit than the customer, resulting in lower quality.
Consumers know this and are often more likely to turn to a local business – even if it’s a bit more expensive – when they want the assurance of a good experience. If you own a small business, consider your size a superpower instead of a weakness. It’s challenging to run a business, but there are people out there who want to support you and see the value you provide over your bigger competitors. Shopping small and local is becoming increasingly popular, allowing you to capitalize on your advantages.
At RCS, we offer superior support, hardware, software, and cloud hosting so you can level up your retail store! We’d love to chat.
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