How to Survive Over a Decade of Cutthroat Competition as a Small Business

How to survive over a decade of cutthroat competition as a small business. Coffee is an extremely serious business where I live. At least six independent coffee shops are all vying for my money within a short distance of my humble abode. That number doubles if I am willing to walk a bit further for my heavily needed morning caffeine fix. With that many establishments in a relatively confined space, competition is fierce, and coffee shops come and go quicker than the latest annoying TikTok trend. Like a weathered sergeant in a war movie, I don’t bother getting to know the names of the “new guys,” expecting they probably won’t be around in a few months.

Throughout that chaos, my favorite coffee shop has thankfully stood the test of time. In business for over a decade, I recently shared a cup of coffee with its owners to see just exactly how their small business survived over 10 years of cutthroat competition. The young couple that runs it aren’t entrepreneurial savants with magical solutions for making a brand last. However, they are smart and employ many of the best practices that are often forgotten in the hustle and bustle of running a business. So, what did I learn? Read on to find out. In this article, we will discuss the following:

· How being unique in a crowded field of competitors is vital.
· Why your brand identity is absolutely worth protecting.
· One of the most powerful marketing tools for small businesses.
· Other tactics and tips for thriving in an environment of cutthroat competition.

Embrace Your Uniqueness

How did my favorite coffee shop survive for so long when others are lucky to last a year? While so many coffee shops failed because they were all trying to do the same thing (make great coffee), my preferred caffeine distributor thrives because it is also a French bakery. Early every morning, the team bakes the most delicious croissants, macaroons, scones and other mouth-watering pastries known to mankind. Sure, other coffee shops might have similar offerings, but they are nowhere near the same high level of quality and deliciousness. Baking their own goods on-site every morning with lots of care makes them unique among the competition.

The lesson: Starting a business to mimic another business because it is successful doesn’t necessarily guarantee success. In fact, it often dooms it to failure if you can’t give customers a good reason to spend their money with you. You absolutely need something tangible and marketable that makes you unique from your competition.

You Better Love What You Do

On a recent business trip, I made a quick stop at a national coffee chain for a jolt of caffeine and a scone. I took a bite of the “scone” and quickly threw it in the trash where it belonged. It was dry, hard as rock, tasteless and a horrifying culinary experience that my taste buds never wish to repeat. The scone was a far cry from the freshly baked ones from my favorite coffee shop that I had become spoiled by. It was easy to tell they were made without love by someone who didn’t take pride in their work. An additional kick to the groin was that the espresso was burnt and lukewarm. I made a mental note to avoid that coffee chain and only buy its scones if I needed to rescue a pet from a locked car.

The lesson: My favorite coffee shop is successful because the people there love what they do. Their passion for making the best baked goods possible is easily deciphered from a single bite. Like my encounter with seriously sub-par scones, don’t expect customers to become repeat ones if you are just going through the motions and not 100% focused on quality.

Take Care of Your Core

Baristas typically have a career lifespan shorter than a supporting actor in “Madame Web.” In a radical departure from that norm, the coffee shop I have become a regular at has had the same two baristas for a long time. Why? Because they are damn good at their jobs. Friendly and warm, they always remember my name and what I order. As soon as I walk in the door, they start making my usual order so it is ready quickly. That courtesy isn’t extended just to me but to other regulars. The duo also knows how to make perfectly crafted coffee that tastes amazing. I am sure they are paid more but are well worth the investment.

The lesson: Many companies don’t give much thought to or skimp on filling entry-level positions. However, those employees are critically important if they interact with your customers. Investing in employees who share your passion and know what they are doing is well worth it.

Protect Your Brand at All Costs

Like almost every small business during the pandemic, supply chain issues also affected my favorite coffee shop. One of the key ingredients used in producing its excellent macarons became almost impossible to source. The owners tried baking with alternatives but couldn’t get the taste or consistency that they were after. The ordeal was stressful as excellence in French baked goods is central to their brand. Instead of trying to sell subpar ones, the decision was ultimately made to cease production of the extremely popular macarons until the supply issues could be resolved.

The lesson: Like trust, building a brand can take a long time but can be easy to damage. While the financial hit from the macaron stop-sale incident caused short-term pain, trying to pass off an inferior product would do more long-term damage. Decisions like this can be hard to make, but always protect the brand you worked so hard to build.

Get Intimate With Your Customers

I was worried about the future of the coffee shop when another fancier one opened just around the corner. Catering to hipsters, it offered pour-over coffee, annoying latte art, soothing ambiance, tasteless vegan donuts, man buns, excessive pricing and all the other fancy coffee fluffery enjoyed by that crowd. In a panic, I thought immediate countermeasures must be taken, including hiring baristas named Clementine and Bear to “fancy up” my coffee shop. However, much to my surprise, the young couple that runs it wasn’t worried at all. They calmly informed me that the customers of the hipster coffee shop were completely different from theirs. I didn’t believe them at first, but they had years of experience interacting with their customers and knew them well. They were right, and both coffee shops have co-existed peacefully now for over seven years.

The lesson: Gathering first-party data about your customers is vital. However, nothing can beat the intimate customer knowledge you get from interacting directly with them. You should seek opportunities to do exactly that and consider creating your own events (read our blog post on how to make your own experiential event) if there are none.

Just Keep Pivoting

The pandemic wiped out many coffee shops, as office workers who desperately needed copious amounts of caffeine disappeared almost overnight. Thankfully, the coffee shop I love quickly pivoted and almost immediately cut its hours to only being open in the morning. Doing so allowed them to reduce labor costs while still being operational. Eliminating the lunch menu also saved money during a time of reduced revenue. Focusing on building repeating customers paid off as locals continued to come in for their baked goods and caffeine fixes. As some workers returned to the office post-pandemic, an additional hour of operation and a limited lunch menu were added.

The lesson: Making rapid adjustments to your business plan in troubled times might seem obvious. However, many coffee shops waited too long to take action, and by the time they did, it was already too late. The ability to pivot rapidly and keep pivoting is pivotal to keeping you in business.

Humanize Your Brand

The young couple that runs the coffee shop introduced themselves to me the first time I walked through the door. Friendly and personable, I have gotten to know them over the years. We even hit the trail together, as they own a nicely built Toyota 4Runner. Their kids wave at me whenever I walk past the shop. Those little details might seem trivial to some, but it “humanizes” their coffee shop and puts faces to their brand. Doing so keeps me going back because I know who they are and support what they do. I hope my purchases will someday help their cute kids go to college or be used for some sweet 4Runner parts.

The lesson: People want to connect with brands now more than ever. For small business owners, that often means connecting directly with you. Don’t be shy and hide in the back office, as being the “face” of your brand can form a bond with your customers and keep them coming back.

A Powerful Marketing Tool

One interesting fact about my preferred coffee shop is that it has never done much marketing. Personally, I think a well-crafted digital marketing campaign (read our blog post about what to know about digital marketing for more information) would be beneficial. However, its owners don’t have much spare time with two small children and a business to run. Where they did put their focus was ensuring their customers were satisfied with quality products and service. They constantly encourage feedback and make any adjustments needed, as happy and repeat customers are their priority.

The lesson: Many small businesses (especially e-commerce ones) focus on making sales as that brings in revenue. However, ensuring your customers are happy after that sale is just as important. Doing so turns happy customers into repeat ones and makes them powerful advocates for your brand. A recommendation from a friend on where to purchase or what to buy can be a very effective marketing tool.

We Can Help

Running a business of any size is a lot of hard work. At Kahn Media, we can help reduce your stress levels by operating as a complete turn-key marketing solution for your company or assisting your internal team. As a full-service marketing agency, we have in-house experts skilled in public relations, social media management, content creation, influencer relations, digital marketing and experiential events. Check out our services page for more information and contact us today to see how we can help your brand grow.

How to Survive Over a Decade of Cutthroat Competition as a Small Business