Small-business owners weigh in on what their biggest challenges are, and how to overcome them.
MARCH 21, 2014In many ways, the moniker small business is a misnomer. When you consider that the average entrepreneur takes on the tasks that a big business parcels out to hundreds if not thousands of employees, a small business doesn’t feel so small.
As your own boss, you’re tasked with completing a wide assortment of duties required to keep your company thriving, from purchasing and finances to research and development and marketing. Considering the weighty responsibilities inherent in running your own business, we recently asked some small-business owners the following question:
What’s the biggest obstacle for small businesses in their communities? Is it support from local governments? Big-box competition? And how can small businesses work better with their local government and get more support?
The consensus is that big-box competition is a real threat to the small-business owner, but the good news is that what makes the small-business owner unique is what makes winning the big-box battle possible. Working with local government can also have a positive impact on the big-box threat.
“Big box competition can be a real problem when you’re first starting out, because as a new brand it takes some time to be recognized and accepted in the marketplace,” Androus says.
The good news is that a small business is the antithesis of a big-box company, says Mike Escobedo, owner and publisher of The Old Towne Orange Plaza Review, a regional publication he founded in 2001 that focuses on a historic district in Southern California that contains a high concentration of small businesses.
“Small businesses are everything that big businesses aren’t,” Escobedo says. “Generally, when you shop in a big-box store, you’re lucky to find help, and when you do and ask where something is, the employee often doesn’t even know if the store has the item or what shelf it’s on. Chances are the product may also be inferior. Go into a small retailer, however, and you can enjoy speedy, personalized service and most likely better products.”
Competing with the Big Guys
Behemoth retailers with their ability to monopolize distribution channels, spend more on marketing than you make in a year, offer loss leaders at will and enjoy volume discounts do make it hard for the small business to thrive, especially when the business is a startup, says Sam Androus, owner and CEO of Love+Grace, a lounge-wear brand that launched its first collection last September.
“Big box competition can be a real problem when you’re first starting out, because as a new brand it takes some time to be recognized and accepted in the marketplace,” Androus says.
The good news is that a small business is the antithesis of a big-box company, says Mike Escobedo, owner and publisher of The Old Towne Orange Plaza Review, a regional publication he founded in 2001 that focuses on a historic district in Southern California that contains a high concentration of small businesses.
“Small businesses are everything that big businesses aren’t,” Escobedo says. “Generally, when you shop in a big-box store, you’re lucky to find help, and when you do and ask where something is, the employee often doesn’t even know if the store has the item or what shelf it’s on. Chances are the product may also be inferior. Go into a small retailer, however, and you can enjoy speedy, personalized service and most likely better products.”