When I first proposed this idea, the small business I was helping was horrified “we can’t do that, out competitors will get all the work and we’ll be out of business in no time!” In fact quite the opposite happened.
Often in a local area several like-minded small businesses depend on the same suppliers. In 2009 when the going got really tough and the suppliers were struggling to keep their heads above water, I suggested to the small business owner to make a list of his competitors in the area, and include their contact information and websites. The list consisted of eight small and a couple of not so small businesses.
The next step was particularly hard for my small business owner, which was to contact his two main suppliers and have a dialog with them, along these lines:
“I understand we are all going through a rough time, especially now with the economic downturn, so I’ve made a list of my competition, who if they are not already your customers, very might well become so if you contact them. I’m happy to recommend you if anyone on the list contacts me”. Needless to say, the two suppliers, who were not competitors between themselves, were both extremely forthcoming with their thanks to my business owner for the comprehensive and helpful list he shared with them.
So what happened? My small business owner started getting recommendations for jobs. His potential customers were also the customers of his suppliers and these potential customers would ask the supplier who could do the installation, and of course my small business owner was at the top of the recommend list. He had been helpful and shared his resources, in this case a list of his competitors. And what is more, he became the go to business, at the top of the recommend list.
In addition, several of the others on the competitors list also increased their business via the suppliers; a win/win for the economic development of the area.
What does this tell you? In our sharing economy of today, even sharing a resource, which consists of a list of your competitors, can pay off. It also tells you that if you are a small business with very limited marketing dollars, without a budget for local ads, direct mail or social media, you can get many of the benefits of a much bigger marketing budget which brings new customers and lucrative jobs.
All you need is to think of an innovative approach which benefits the people you do business with, in this case your suppliers, and indirectly, your competitors.
2010 was a good year for the small business owner who shared a list of his competition with his suppliers; ten lucrative installation jobs and positive cash flow! No small thing considering the economic times!
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