The changing face of business. What does it mean to SMEs?

There are many challenges for small businesses and this is demonstrated by the statistic that only 50% survive the first 5 years (source: FSB). 

In 2018 there were 5.7m SMEs (0-250 employees) which represents 2.2m more than in 2000. This increase in competition drives the subsequent need to stand out in order to survive. 

There’s no doubt that having a defined brand has many benefits from delivering value to its customers to developing a strong recruitment pipeline, but in the first instance it is critical for a business to put its stake in the ground – to define what’s unique about the business, what’s standout about its product or service and why customers will benefit from buying into the brand rather than going anywhere else.

Frequently businesses focus too much on WHAT THEY DO without thinking more strategically about their brand vision. Unless a business is incredibly niche the competition will be broad and that means that without definition a customer will default to a cost comparison. This leaves a business with nowhere to go except down a road of endless sales and promotions which may bring in short-term sales but won’t build brand loyalty or a brand following. At Insight101 we encourage our clients to invest in more strategic and long-term the thinking so that it is better placed to attract and inspire higher value custom.

We hear so much about disruptor businesses and brands across sectors. This represents an opportunity for SMEs in particular

There's a lot of change and innovation evident across sectors. Some of the norms and successes enjoyed by more established global corporates are now being challenged by smaller disruptor businesses. Why? Because large corporates have old business models. They operate on such a scale that it’s difficult to effect change quickly. That in turn means that they can’t respond to the competition as effectively as a start-up or small business.

If ever there has been a time to innovate and push forward, this is it. SMEs should be thinking about their approach to business and their offer specifically. Wrapped up in this is what their brand represents and how they can translate this into inspiring and new experiences for customers. Social media and online in general enables small businesses to widen their net and to have a brand voice. Know what it is that you stand for as a business and then amplify it consistently and powerfully.

What trends are affecting brands in 2019?

These are interesting times. On the one hand many large brands are struggling to succeed in a highly competitive market and especially retail brands.  The high street is evidence of this. On the other hand, consumers are looking to brands to have an opinion and to, in fact, drive the dialogue around many global issues. Changes to the economy and politics, societal shifts and the massive digital revolution has left many feeling insecure and mistrustful of the established “powers that be”. As a result, consumers are relying on brands to lead the way and to challenge existing behaviours and opinion.

Never has there been a better time for brands, including smaller brands, to be clear about what they stand for – their vision and their contribution to the world, their values and beliefs and how they behave as a result. It’s no longer good enough for brands to push themselves on the back of their product or service, they need to be able to demonstrate what else they do and why they are contributing to society and providing further benefit. Brands need to engender trust. They need to champion integrity, real talk and authenticity and deliver on these EVERY DAY.

The customer is king

It’s truer now than ever before. In my line of work, one of the first challenges I hear from my clients is that business is tough, and they are increasingly being challenged on price and why their business is worthy of the investment. The industry changes, new entrants into the market brings fiercer competition and, of course, budgets are slashed particularly at a time when Brexit is firmly on everyone’s mind. The reality can’t be changed and yes, cost is always a deciding factor (or can be), but equally a business that is going to survive is one which elevates itself by establishing who it is going to target, what these target customers need and how it will respond to these needs. By being clear about the brand offer, clearly demonstrating a unique positioning based on a precise target within the sector (white space or otherwise) and being focused on meeting these needs helps enormously.

At Insight101 our brand work includes pinpointing the customer target and describing them in infinite detail. Anything that a business does must be talking to them and them alone (yes, specifically) so that the noise from other businesses is cut out. Only when a customer is convinced that this is the only option will the conversation around price be less of a priority. The customer wants to know how their problem will be solved and what the business ultimately stands for vis a vis their own business.

We hear a lot about attracting and retaining talent these days, SMEs, and in fact any business, need to protect and secure their future

Attracting and retaining talent is a massive topic of conversation these days. As more and more start-ups pop up and consumer needs & beliefs change (no jobs for life for example) we see businesses struggling to attract talent in the first place. If we look at STEM for instance the issue is magnified as the industry tries to attract women into the industry.

Whether it’s attracting more women into historically more male industries, or simply attracting fresh talent into business, the issue is the same. Individuals need to be inspired. They need a real reason to give their 9-5 lives to you. Beyond payment, i.e. a salary (which is a given) individuals are looking for much more. They look to businesses to provide personal and professional development, a culture which inspires and nourishes and a business which values its staff. Whether that is around health and well-being or something else, its’ clear that business these days need to demonstrate its worth and its values. And not only talk about its values both to their staff and the world at large but demonstrate how these values translate into actions. This has a significant impact on a business’ ability to attract the right people who will be motivated and excited and the ability to retain those staff who are productive and an asset.

At the end of the day, it comes down yet again to what the business, the BRAND, stands for. Get it right and there will be people flocking to join the business and being committed and loyal enough to stay. After all, the choice is there and with so many options and changes in work behaviour, it’s pretty easy to jump ship and look for a better option. So if a business wants to win, it needs to shift its perspective and shift the dialogue. It’s not about what a candidate can do for them, it’s what the business can do for the candidate. And of course, when it comes to STEM, this is even more important.

Philippa is hosting the WeMeanBiz Networking breakfast at #SGBS19

https://sgbs19-business-breakfast-with-we-mean-biz.eventbrite.co.uk 

And also chairing our discussion Panel "Achieving Gender Balance in Business"

https://achieving-gender-balance-in-business.eventbrite.co.uk

She will be delivering a seminar at the Business Showcase South West on 23 October https://www.eventbrite.co.uk/e/bssw-seminar-8-stop-haggling-how-to-attract-high-value-clients-every-time-philippa-haynes-tickets-71699724807

For further details visit the Insight101 website: www.insight101.co.uk

Telephone: 07990 796543