Posts Tagged small businesses
Do Mature Businesses Have an Advantage Over Startups?
According to The Small Business Success Index*, an ongoing study of U.S. small businesses, “mature businesses have an edge over startups and newer companies.” The study also claims that “being in a growing or mature industry has a direct bearing on a business’ competitiveness.”
Many startups and new businesses have limited access to capital, which makes it difficult for them to advertise as aggressively as mature businesses or invest a great deal of money into building their businesses. They also typically have a harder time gaining the recognition necessary to compete with more reputable businesses. However, their lack of a recognizability can be a good thing, as well. It allows them to take larger risks. For this reason, many new businesses rely on innovation to build awareness and gain a competitive edge.
In my opinion, a startup that can create a product or service, capable of meeting an unfilled and long-lasting demand for a large consumer group, can obtain – and even secure – a competitive advantage over a solid, mature business. Take look at Twitter™, MySpace® and Facebook®, for instance. They are among the most well-known Web sites worldwide, yet they were all launched fewer than 10 years ago. Their quick success was a result of their innovativeness. Of course, Twitter, MySpace and Facebook are not representative of the norm, but you get the idea.
I want your input on these findings. Do you think mature businesses have an edge over startups and newer companies? Please leave a comment.
*The Small Business Success Index, an ongoing measurement of the overall health of U.S. small businesses, was commissioned by Network Solutions, LLC and the University of Maryland’s Robert H. Smith School of Business. To take the survey yourself, click here.
1 comment April 10, 2009
Do Small Businesses Offer the Best Customer Service?
Everyone is familiar with the phrase “customer service.” We all have an idea of what good customer service entails, and we have all experienced our share of bad customer service in the past. Most business owners realize that customer service (or lack thereof) can either make or break their business; therefore, business owners are now focusing their efforts on building policies and practices that give their customers the best service possible.
Small businesses have an edge over large businesses because of the relationships they are able to build with their customers. According to the Small Business Success Index, an ongoing study conducted by Network Solutions, LLC, and the University of Maryland’s Robert H. Smith School of Business, “Customer service is an area where small businesses feel that they excel.” While most large businesses have customer bases that number into the thousands and beyond, small businesses usually have only a fraction of that. This gives small businesses an advantage when it comes to serving their customers and building customer loyalty. Since large businesses have such a high number of customers, they are often unable to cater to each customer’s individual needs. While it isn’t always possible, small businesses are more likely to be able to “bend” to meet their customers’ demands during special situations without compromising their business’s well being. Customers who frequent small businesses and receive this type of treatment are more likely to feel that their patronage is appreciated. They also feel confident that should any problems arise, the situation will be handed swiftly and respectfully. This combination results in lasting customer loyalty.
Small businesses can’t always offer the cheapest prices or the largest product selection. What they can offer, however, is unparalleled customer service. We would like to hear your thoughts on small businesses and their customer service. Do you notice a difference in customer service between small businesses and their larger counterparts? Do you prefer one over the other because of this reason? As a business owner, what have you done to ensure that your customers receive the best treatment?
*The Small Business Success Index, an ongoing measurement of the overall health of U.S. small businesses, was commissioned by Network Solutions, LLC and the University of Maryland’s Robert H. Smith School of Business. To take the survey yourself, click here.
3 comments April 8, 2009
The CEO of Network Solutions® Discusses Today’s Small Businesses
Roy Dunbar, CEO of Network Solutions®, recently sat down with Fox Business News to discuss the current state of small businesses. During his interview, Roy discussed the challenges and successes of today’s small business. Some of the information I gathered from watching includes these interesting tidbits:
- One of the largest challenges small businesses face is access to funding.
- The majority of small business owners have a positive outlook on their future.
- Small businesses create the majority of American jobs
To view the complete interview, visit http://growsmartbusiness.com/2009/04/small-business-success-index-on-fox-business-news.
Add comment April 2, 2009
How the Stimulus Package Effect Small Businesses
Small businesses and home businesses are springing up across the country – despite the recession – adding to the many that already exist. So what does President Obama’s stimulus package have in store for these businesses? The following article by John Blake lists some of the provisions geared toward small businesses: http://www.cnn.com/2009/LIVING/worklife/03/10/tax.changes/index.html
Add comment March 31, 2009
Finding Capital: Separating the Bad from the Good
According to a recent small business report comprised by the University of Maryland’s Robert H. Smith School of Business and Network Solutions®, “the single biggest competitive disadvantage of America’s small businesses today is in meeting their capital needs to grow their businesses.” As a result, sites like TheFunded.com are quickly gaining popularity.
From what I can see, theFunded.com is an online community for entrepreneurs who are looking for quality investors. Members can easily search for investors by geography and funding level. They can also find out whether or not an investor is rated highly by other members or rate the investor(s) themselves.
This site is only free to CEOs; therefore, I did not create an account to further my exploration. If you wish to learn more about TheFunded.com, check out the following video demonstration: http://www.revoltizer.com/movies/index.html
Add comment March 24, 2009
Small Businesses Are Still Profiting Despite the Economic Downturn
Today, Network Solutions® and the University of Maryland’s Robert H. Smith School of Business announced the launch of the Small Business Success Index, an ongoing report on the overall state of US small businesses. Their benchmark survey indicates that small businesses are doing just fine despite the recession. In fact, the majority of the small businesses that participated in the study made a profit in 2008. To view the results of this study, go to: http://growsmartbusiness.com/small-business-success-index-highlights/
Add comment March 13, 2009
Create Win-Win Situations with Contracts
Over at Small Business Trends™, Diane Helbig recently posted an article that explores the reasons small business owners should consider implementing contracts into their business procedures. “Death by Contract—Or Lack Thereof” discusses the ways in which setting up a contract can help a business and its clients get the most out of their relationships. Helbig also illustrates the benefits of setting up a contract between a business and its employees. It’s a good read for all business owners, but owners of small businesses that provide a service to their clients should especially take a look.
For more information on how client and employee contracts can help your business, visit MySolutionSpot™ and browse our selection of articles on business operations and procedures.
Add comment March 12, 2009
What Are You Doing to Save Your Business?
Many small businesses are facing several obstacles as a result of the economic recession. Every business owner has his or her own method of dealing with these obstacles. See how one couple chooses to cut back in order to save their small business: http://www.cnn.com/2009/LIVING/02/05/economic.survivor3/index.html
Add comment February 5, 2009
