How Small Businesses Can Beat Big Businesses
Summary
- Every beginner thinks they have a disadvantage, but there are benefits to being small.
- Big companies often become complacent and forget what made them successful.
- In business, there's a cycle where new companies rise, become big, and then may fail.
- As a beginner, you can offer personalized attention because you have no scale.
- You can compete by highlighting that you will provide personal care and attention.
- Tell clients they are just a number to big companies, but personal to you.
- Offer your personal cell number to show dedication and build trust.
- Explain that you want to get amazing results and might even do it for free at first to build experience.
- Mention the risk of inexperience but reassure clients with your dedication to work hard.
- Highlight that you're fully invested in their success because their win is your win.
- If there’s a problem, you will be there right away, unlike bigger firms.
- You can run better margins because you don’t have multiple layers of management.
- Everything you charge can go straight into your pocket, making your business model super efficient.
Video
How To Take Action
Action Plan for Small Businesses and Entrepreneurs
1. Embrace Your Beginner Status
I would suggest embracing the fact that you are small. Big companies often forget what made them successful. Use your size as an advantage.
2. Offer Personalized Attention
A good way of doing this is to highlight to your clients that they are personal to you. Big firms treat clients like numbers, but you can provide personal care. Give your clients your personal cell number to show dedication and build trust.
3. Build Experience with Free Services
Tell your clients that you want amazing results. Be upfront about your inexperience and offer to work for free initially. This reduces their risk and gives you a chance to build experience and prove your dedication.
4. Be Fully Invested in Their Success
When clients see how invested you are in their success, they understand that their win is your win. Make it clear that you’ll go above and beyond to solve any problem right away, unlike bigger firms.
5. Run Efficient Margins
You don’t have multiple layers of management. Everything you charge goes straight into your pocket, making your business super efficient. Use this to offer competitive pricing while maintaining high profitability.
Steps for Personal Growth
1. Realize Your Unique Position
Being a beginner isn't a disadvantage. It's an opportunity to learn and grow in a way that big players can't because they’ve become complacent.
2. Leverage the Cycle
Understand that business has a cycle. Newcomers rise while established businesses might fall. Use this to stay motivated and innovate constantly.
3. Focus on Hard Work and Learning
Commit to working as hard as humanly possible. Absorb all the knowledge and experience you can from each client interaction.
By implementing these strategies, you can leverage your beginner status, provide exceptional service, and run a lean, efficient business. Start small, focus on personal attention, and build from there.
Full Transcript
every beginner thinks that they have a disadvantage but there's a cycle in businesses like there's only one business in the S&P 500 that has been here 100 years as much as we like to think of these Behemoth as these big things is like there's disadvantages to being large that's why there's this constant cycle of New upand Comers who swell and get bigger and bigger and then they forget what made them good and then they they go it's a cycle more than is linear and so when you are a beginner you have the advantage of no scale which makes it really compelling and saying I will give you personalized attention like if you're competing against an established person you say hey you're just a number to them you're personal to me I'll give you my sell I want to get amazing results for people I would like to do it for free you're still going to obviously incur the risk of me not knowing what I'm doing but I'm trying to decrease the risk as much as I can and I promise you that I'm going to work as hard as humanly possible because I have no other client I'm just so invested in making this win because if you don't win I'll never win and if there's ever a problem I'll be there and you can obviously run better margins than they can because you don't have all the layers of management in between and so everything that you charge goes straight into your pocket so you run the most efficient business model ever