In a world dominated by well-funded corporations and low-cost production hubs like Southeast Asia, small businesses must adopt a different strategy to thrive. Traditional approaches, such as quoting standard prices and relying on a shrinking customer base, are no longer sustainable. But fear not, there's another path to success.
What's Not Working for Small Businesses?
Small businesses often find themselves struggling to keep a dwindling customer base. These customers may not be as price-sensitive or may lack the sophistication to explore options beyond the U.S. market.
The Alternative Approach: Building a Global Services Team
Why Should You Consider This Approach?
Material Prices: Small businesses have limited control over material prices, which can fluctuate significantly.
Labor Costs: Similarly, labor costs for production may not be easy to influence, especially in a globalized market.
The Solution: The key lever you can control is overhead - everything else.
How to Build a Global Services Team
- Hire Global Talent: Scout for exceptional talent from the best locations worldwide.
- Cost Efficiency: Pay a fraction of what you might spend locally for top-tier talent.
- Loyalty and Quality: Invest in employees who are not only cost-effective but also dedicated and hardworking.
- Quality Improvement: Elevate the quality of your work and services, gaining a competitive edge.
- Overhead Reduction: Achieve significant overhead savings, potentially reducing costs by 10-20%.
- Back Office Excellence: Establish a world-class back office for functions such as customer service, accounting, communication, sales, and more.
By adopting this strategy, small businesses can level the playing field and find success in a highly competitive landscape.
Remember, in the battle against giants, creativity and resourcefulness can be your greatest allies.
