Winning Against Your Goliath Competitors

by Jim Holland

When David faced Goliath in the famous Biblical encounter, the odds looked insurmountable. For small business owners, facing large competitors may look similarly difficult. But small businesses can compete—and succeed—if they fill their slingshots with strategies that boost the chances for success, focus on their strengths and promote the attributes that make them unique.

Consider these tips when planning which “stones” to put in your slingshot.

Find your niche. Determining your business’s niche gives you power, letting you define what and to whom you’re marketing. A niche can be based on geography, product line, price or service. In the legal industry, for example, many large law firms are general practice firms, while smaller firms find their niche in areas such as intellectual property, litigation, or labor and employment, such as Fisher & Phillips. That concentration has allowed the firm to provide specialty legal services to local, regional, national and international companies. Find and focus on your niche, and you’ve just tilted the odds in your favor.

Create long-term relationships. People relate to people, not organizations, and small businesses have the unique ability to treat customers or clients with a truly personal touch. By leveraging that attention, small businesses can build long-term relationships and customer loyalty. In large organizations, the people at the top often are removed by layers of bureaucracy from those who interact with clients and customers. Top executives in smaller organizations are more likely to be on the front lines, know the customers directly and have a clearer perception of the customer’s needs and desires.

Develop employees who get it. If your business is going to pride itself on personalized service and relationship-building, those tenets must be the mantra of the entire organization. The owners and top executives must be clear about the mission and must ensure that everyone in the organization understands and embraces it. Owners and managers also must routinely and effectively communicate the goals and objectives of the business to employees and must model client-centric behavior.

Be flexible. Sometimes, fickle clients and a rapidly changing marketplace demand that businesses be flexible and willing to adjust to those changes. Has technology passed you by? Are more competitors targeting your geographic area? Is the popularity of reliable brands waning? One needs only to look at the success of microbreweries or the emerging growth of specialty food markets to understand that there are a variety of Davids who stand up to the Goliaths in their markets by responding quickly with unique product and service offerings. Small businesses can be much more nimble in responding to market changes, technology innovations and consumer interests.

Lean on trusted advisors. Smaller organizations often can benefit from becoming part of a network of similar businesses. Our firm recently merged with a nationwide labor and employment law firm with offices in 14 cities. Merging made sense because the larger firm shares the same mission and niche that has allowed us to prosper. If a merger is not in the picture or is undesirable for your company, find other ways to get connected to like-minded business people. National associations and local and national industry groups can offer a wealth of resources. Or, consider forming your own group with other business owners who understand your industry and can offer sound counsel and ideas.

Small businesses are a force to be reckoned with. According to the U.S. Small Business Administration, there are approximately 25 million small business owners across the country. They employ more than half of the country’s non-governmental workforce, create three out of four new jobs and generate a wealth of American innovation.

Your business, like many others, takes shots every day at your Goliath competitors. By employing the right strategies, you’ll arm your company to succeed against the odds.

Jim Holland is a partner in the Kansas City office of Fisher & Phillips LLP. He can be reached at 816.842.8770 or via e-mail at JHolland@laborlawyers.com.