Customers can be apprehensive about small firms, fearing they lack the skills, capacity and experience to perform as well as bigger operations. Tom Whitney finds out how to persuade customers that you are a credible proposition
Being a small firm can sometimes be an advantage, allowing you to play on the quality and exclusivity of your service. But your size can also deter potential buyers. It is up to you to persuade them that you are at least as professional as your larger competitors.
"Small firms, particularly those working from home, can be susceptible to image problems," explains Ben Harris, managing director of marketing agency New Brand Vision. "However, many successful small businesses are run from home, yet project the image of being much bigger firms. It's about looking as credible as larger competitors."
"There aren't many places customers can go to establish your credentials, and all these points of contact need to look professional," stresses Harris. "If a customer looks at your website and it's poorly put together, it puts doubts in their mind.
"People look to these communications for validation," he continues. "If it doesn't look and feel right, it's much harder to impress them."
According to Harris, small firms need to spend that bit extra on their marketing if they are going to compete. "But even if you only have the marketing budget to do a few things, the key is to do them really well," he adds.
"If you can't play on the fact that you are a small business, you should be trying to cover it up in the most efficient way," Harris insists. This includes your contact information - for example, if you are concerned that giving customers your residential address does not look very professional, consider using a PO Box or renting an address from a redirection business.
"If you want, you can then give the impression you are based in a city even if you are actually in a country village," explains Harris. Equally, you can shift attention from your location, and size, by using an 0845 number. You should also try to avoid diverting your calls from your main number to a mobile phone, as this is often a sign of a smaller firm.
If you are online, have a professionally designed website and your own domain name. It can be another indication that you are a small business if your email address is johnsmith@aol.com rather than johnsmith@cityplumbing.com.
Get your written materials designed and printed professionally, whether this is stationery, brochures, business cards or signage. "Often when you meet small-business owners while networking they talk a good game, and you get a good feel for their business. Then they hand you a home-made business card and it really doesn't look very professional," Harris remarks.
"Little things like having your cards done properly are not going to create business for you, but they are going to help prevent you from losing customers," he concludes.
Comments
I think the need to look professional (which is in fact the essence of the article) is very important. For very small businesses there are lots of useful tips mentioned above.
However, trying to look bigger than you are needs to be approached with caution.
There are situations where looking bigger than you are can be beneficial to your business, but this isn't always the case. When working in a previous company we encountered problems when our brand was designed to make us appear bigger than we actually were.
We were at that size where we worked for both SME's and corporates and decided to rebrand to target our preferred market (the corporates) by appraching our communications with a similar voice.
Whilst this did find favour with existing corporate customers, and did attract some new business, we found that we also alienated a lot of our existing SME business and more or less killed new business to that audience entirely.
Whilst this strategy seemed sound (as the corporates were more willing to pay the fees we needed) we weren't large enough as a business to actually support the processes needed to engage with corporates and thus we struggled to live up to the brand positioning we'd built (and didn't gain the number of contracts needed to make the leap).
If the company's directors had been able to secure the investment needed to make this step up then the strategy might have still worked, but with the economy as it was at the time this proved impossible for them and the company had to back track and rebrand again re-embracing SMEs.
So I guess that whilst I totally agree that you need to look professional, as this article is really saying, looking bigger than you are isn't always the way to go about it.
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