Small Businesses at Great Risk from Larger Tech-Savvy Companies

Small Businesses At Risk

Small business owners are often proud about their achievements and professional life for good reasons: small businesses provide personalised customer service, have a loyal customer base that supports you no matter what, and innovation is easier to attain in smaller firms compared to large enterprises. Entrepreneurs owning a small company may be logging more hours than the employees of a corporation, and yet they are happier than the rest of the Australian workforce.

However, there is a flip side of the coin to the small business environment these days:

Small businesses are in danger of going under as bigger, and more digitally savvy businesses move to take them out financially

According to American Express report “Economy of Shopping Small: Keeping it in the Community 2017”, small businesses are failing to embrace the technology that could keep them afloat as larger businesses are sweeping into Australia and taking more and more market share. While only 38% of small businesses feel under threat from large online businesses, the majority are vastly under prepared and oblivious to the threats posed by big players like Amazon, which is set to go live late November 2017.

Having a website is the first step towards minimising this risk, but small businesses are often neglecting this opportunity

The majority of consumers are saying that a website is the most important tech investment, and yet only 52% of small businesses surveyed actually have one, with 24% worryingly saying they have no intention of ever getting one. The risk is that small businesses are going to be left far behind, even if they often rely on loyal customers. Consumers are after all attracted by innovation and comfort, and they will instinctively choose the services of a company which is anchored in the present.

There is a huge chance for small businesses to capitalise on technological innovation and provide that “special something” that big business will never be able to emulate, which is personalised customer service. No experiential marketing strategy can replace the feeling you have when you are provided quality services by a trusted member of the community and discuss business with a friendly figure you’ve known for ages. However, this advantage loses its strength when your digital marketing strategy is pretty much absent.

There is still hope

According to the same report quoted earlier, some statistics still indicate that some small business are being tech-savvy smart and incorporating digital marketing strategies into their marketing plan:

  • Half of small businesses use social media marketing (but not well) and a further 24% plan to do so
  • 27% expect to incorporate more tech into daily operations
  • 24% are targeting increased online sales

Small BusinessesFor a small business, having a good website, social media profile and online presence means they are not only meeting their customers’ expectations and staying relevant, but also gaining further reach and opportunities for referrals, so they thrive for generations to come. Adopting the latest online marketing innovations is not just being in fashion; this move represents so much more for a small business and is considered as one of the best investments for the future.

VMA can assist you with your transition towards a digitally-savvy small business by building a lead-generation website for you and advising you on the best online marketing strategies to suit your business. Call us today and let’s prove large companies and the community that small business is still holding power!