Saturday, 13 February 2016

8 Reasons why small businesses are growing




Small businesses now has more chances of survival compared to decades ago, thanks to technological advancement.

Some of the reasons  why small businesses fail includes lack of access to credit facilities, managerial inefficiency and financial indiscipline.

Today, most of these reasons are minimized due to technological advancement which makes access to information just a click away.

Many small businesses are growing with the aid of disruptive technology contrary to projections. For instance, in the United state, big businesses eliminated 4 million jobs while small businesses added 8 million jobs since 1990(SBA). The odds now favors startup than ever due to:

Social Media
Marketers has envisaged a platform like  'social media' years before it was launched.
Social media was a game changer for small businesses. Billions of people access their social media account daily to share photos, videos, pictures and status updates.

Small businesses use social media to create brand awareness, generate leads and close deals. Research has shown that small businesses with good social media presence are more successful than others without good social media engagement strategy.

Based on infographics data by Hexo, 49% of small businesses found social media marketing effective for their business. 44% of small business decision makers use social media website to access the information of other businesses. 73% of small businesses used social media in 2012.

Communities
Community is a platform where people with similar interests meets. It could be in the form of group but mostly online.
Google+, America Express Open Forum, Social Media Examiner  are powerful online community platform.

This helps many small businesses since they can connect, create relationship and obtain information at zero cost from their various online communities.

Julie knudson wrote on small business computing that  "an online communities for small businesses provides a powerful platform for small business owners yearning to build brand awareness" 

Search Engine
Leading search engine includes Google, Bing and yahoo.

Content Marketers understand the power of search engine. Top ranking on Google search engine is the target of most online publishers.

Small businesses are using the search engine to their advantage. The good thing is that money can't buy good ranking on search engine. What determine top ranking is good content. 

Jayson Demers, founder and CEO of AudienceBloom found that small businesses can perform better than big businesses by doing these five things:
1. Specialize in a niche
2. Engage in a long tail keyword strategy
3. Leverage locality for optimization
4. Personalized social engagement
5. Become a recognized authoritative content publisher

Video marketing
Video marketing includes video creation, publishing and distribution. Cisco reported that by 2017, video will account for 69% of all consumer internet traffic.

Leading social media platform  like Facebook has successfully integrated video advertising to it platform.

Small businesses are using video marketing to drive brand engagement. In fact, video marketing has come to stay. Everyone big or small has equal chance of survival in the video era.

Millennia
Significant percentage of the world population are gradually turning millennials.

The term millennial is usually considered to apply to individuals who reach adulthood at the turn of the 21st century(Mathew Haughn)

Millennial grew up with computer and the internet. They adjust easily to new operating system and rely more on the internet for solutions and basic troubleshooting. 

The millennials are dominant on social media. They embrace and adapt to new trend easily. This makes them the first target of startup.

Research has found that millennials favors small businesses. A 2012 research by payscale found that 47% of millennials in the workplace are employed by small businesses of 100 or fewer employees.

High Internet technology
Small business with the aid of high internet technology are becoming disruptive. year 2015 was tagged 'year of disruption' in the business world. Unknown brand such as Uber and Airbnb were brought to the limelight courtesy of disruptive technology

High Internet technology clearly favors small businesses unlike big businesses that will have to change almost the entire process before adopting new technology.
Small businesses will drive business disruptions in years ahead.

Affiliate Marketing
Affiliate marketing program work by having the merchant manage all the purchase order and delivery while the partner receive commission for sending the customer to the merchant website.

A small business could be a merchant or partner in affiliate marketing model.

An efficiently run affiliate program can boost online sales(Rae Hoffman Dolan).
In 2010, Amazon derived 40% of its total sales from affiliate program.
Many small businesses are signing up for the affiliate marketing program daily.

Blogs
Free Blogging platform enables small businesses to start and manage their blog at no cost.

With good content and minor marketing efforts, many small business are reaching their customers real time.

Blogs helps small business to establish authority in their chosen expertise. It makes business owners become good thinkers and solution providers.

Finally,
Crowd funding website like kickstater.com, Angel investors network and venture capitalists whose main purpose is bankrolling small businesses at its start-up phase are also contributing to the growth of many small businesses.

Featured post

Inspiring Stories of Successful Nigeria Entrepreneurs

Arguably Nigeria Entrepreneurs faced some of the biggest challenges worldwide. I could remember when I went to my ...