The Incredible Power of Small Business

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It takes a lot to knock small businesses out of the saddle. When times are tough, they hunker down and hang in there. The workdays get longer and the take-home pay gets shorter. Even banks shutting off the lending spigot doesn’t deter small businesspeople. They whip out the credit cards and keep going or they go online and tell their story to the micro-lenders to find those who will take a chance on them.

 

Throw the little guys a curve and they’ll figure out how to hit a home run. If that sounds a bit romanticized, it isn’t. As a follow-up to the recent recession, look for a huge new crop of entrepreneurs, particularly women.

Although small business owners are cautious and often work very hard, they are also incredibly optimistic — and they need to be. The small business failure rate runs from 30 percent to 50 percent in the first five years, depending on whose figures you’re looking at. This isn’t surprising since a lack of adequate cash flow is perhaps the biggest problem. But such a huge hurdle isn’t enough to stop those who are determined to be in business for themselves.

When all is said and done, there are good reasons to give a high-five to the small business owner. It was 9:30 on a Friday evening after a particularly busy week when we finally pulled into our getaway place. We were looking forward to our first weekend there in three months and we were ready for it.

We were getting ready to put the food away, when we opened the refrigerator. In that instant, we knew the weekend was off to a very bad start. The smell of rotting food was overwhelming. The freezer section was even worse, thanks to four cartons of Ben & Jerry’s chocolate frozen yogurt. What a horrible mess!

“I know what we’ll be doing tomorrow,” said Mary. Clearly, our plans had changed. We would spend Saturday getting a new refrigerator and trying to have it delivered — the same day. Such naive optimism!

The pause that followed failed to inspire confidence.
“Oh, this is Saturday,” she said.

Going online to find a local appliance store turned out to be a challenge. Several were listed but were no longer in business. That narrowed it down to Home Depot, which opened at 6 a.m. on Saturday, and we called to make sure they carried appliances. A harried woman answered and tried to be helpful. Before we hung up, we asked her a crucial question. “If we came over now and found what we needed, could you deliver it today?”

The pause that followed failed to inspire confidence. “Oh, this is Saturday,” she said. “You’d have to come in and see if we had what you wanted. Then we would ask the store manager if we could deliver it today… but I can’t promise that,” she added quickly. Hope was fading. However, it was better than nothing. Again, optimism!

Arriving at Home Depot shortly after eight with measurements in hand, we headed for the major appliances. None of the display models worked. Since no one was around to help us, we checked online to see if there were a Lowe’s nearby. Not on Rhode Island’s Aquidneck Island, although there was a Best Buy close by that opened at 10 a.m.

With time to kill, we were headed to a favorite coffee shop when we spotted a BJ’s Wholesale store. Maybe they carried refrigerators. “Only the small ones,” the greeter said. Our next question was obvious, “Can you tell us where we might buy a refrigerator?” He thought for a few seconds, “Only at Home Depot, Lowe’s off the island or Sears.” Surprised, we said, “That’s just a tiny store.”

Since the Sears store was almost next to the coffee shop where we were going, we stopped, even though it seemed like a waste of time. In we went and were totally blown away by what we saw. The place was packed with an astonishing assortment of major appliances!

In less than 10 minutes, we found the perfect refrigerator. Now came the killer question. Holding our breath, we said, “We need it delivered today.” The response was both instant and amazing. “Sure,” said the salesperson. “We sponsor a Little League team and this is the opening day. We’ll be back in an hour and be at your place a few minutes after that.”

He didn’t exaggerate. By noon, the refrigerator had been delivered, installed and the old one was on its way out the door. “Remember, don’t open the doors or you’ll be sorry,” we yelled.

And delivery was free. “Fast, free delivery is our brand,” said the pleasant owner, who had recently bought the store. When I described our Home Depot experience, he smiled and said, “When people need appliances, they need them now, and we make it easy to get them. That’s what makes us different.” When a Sears Hometown store says they’ll deliver in 15 minutes, they mean it, unless of course, the local Little League is having its opening day.

Joe Kilty, the store owner, gets it right. He isn’t selling appliances; you can get them other places, including online. But Joe understands that people want convenience and service, and they don’t want to wait for delivery. They want it now. That’s what he’s selling.

Maybe it’s as simple as being confident that someone is taking time to think about them more than just the sale.

Customers Need Care 

There’s more to it than that, of course. Customers also want to feel someone cares about them. They want follow-through and good communication. Maybe it’s as simple as being confident that someone is taking time to think about them more than just the sale.

And best of all, as in the case of our new refrigerator, it’s the peace of mind that comes with knowing that the ice cubes will be ready before dinner.

All this adds up to a winning proposition:

• It’s easy to beat the big guy if you think like a customer. Years ago, someone taught me what he called the magic word — and it was. “Whatever the customer asks,” he said, “Just say, ‘Sure.’” The big guys are very good at ignoring and alienating customers. They never smile or genuinely ask if they can be helpful. Fortunately, the playing field is anything but level.

• Customers are on the side of small business. They like to walk in the door and be recognized. They’ll pay more for it, too. When that happens, they talk about it to their friends and neighbors. In other words, buzz will always beat the big box every time. The worse the service from the big guys, the better it is for the little guy.

• The small business makes an effort not to disappoint. If we go to a big chain or a national retailer, we almost expect to have a bad experience since it happens so often. If a small business lets us down, we’re truly disappointed.

Although some seem to think that the little guy is at a disadvantage, that Goliath will get David, it’s not true. Perhaps no company feels this more deeply than Apple. When you think about it, most people perceive Microsoft as a really big company — and it is. But that’s not how we think of Apple. Over the years, they have made sure they are perceived as personal, delivering service as if it were local. This is the genius of an Apple store. It offers the feeling of being a local store. The customer experience is friendly, helpful, reliable and fun. Is it any wonder that Steve Jobs credits the Apple stores for making something akin to a pivotal contribution to the company’s success? Even Wal-Mart is learning that small stores may be what is needed to grow the business.

It’s not surprising that small business possesses an immense amount of power.

End of article
  • photo of John Graham

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of Magnet Marketing, and publishes a free monthly eBulletin, No Nonsense Marketing & Sales Ideas. Contact him at [email protected] or johnrgraham.com.