Editor’s Note: The following is the first part of an interview with consultant and author Praveen Gupta that originally ran in Winning Workplaces newsletter, May 9, 2007 issue. In this interview, Gupta predicts the role that smaller firms will play in business innovation during the rest of this century. The complete interview is available online at www.winningworkplaces.org.
Q. How can small business owners and leaders keep their performance yield high while minimizing cost-cutting? A. Smaller businesses can compete with larger businesses based on performance and speed. Small businesses normally do not have as much waste as large business do [because they have] smaller infrastructure. Thus, there is a constant battle between lowering the cost of products or services and offering value to customers. This requires that small businesses build customer relationships based on value-to-price ratio rather than just the price. Low Cost Marketing Ideas • Have some business card-size stickers made that list the basic information about your shop. Place one under the hood of every car that you service.• Buy a sandwich board-type sign with changeable letters. List specials or other shop information on it and set it out by the street during the day.
• Install flags near the front of the shop to attract attention.
Read more tips at www.AutomotiveManagementNetwork.com
We have learned that every business, including small businesses, must focus on profitable growth by developing innovative solutions to grow customer demand. If we offer our customers what they “love to” have rather than what they have just asked for, customers will be willing to pay a premium and [businesses] won’t be rushing to find the cheapest solutions. So, we must learn to spoil customers with our care and creativity, instead of the low-cost solution.
Praveen Gupta is president of Accelper Consulting in Schaumburg, IL, and an adjunct professor of business innovation at the Illinois Institute of Technology’s Center for Professional Development. He has written several books on Six Sigma, business innovation and corporate performance.
