Starting a small business, sustaining it, making it your full-time work and stream of income is more difficult than most people think. Competing with well-established brands with multiple stores, a massive budget for marketing, and innumerable employees is not everyone's piece of cake.
Moreover, big companies have factories that manufacture 1000's of products every hour whereas in small businesses only a few people work to create one or two items per hour.
Innumerable small businesses have set up worldwide selling homemade luxury items like clothes, food, décor, accessories, and so much more. Now there are so many small businesses that there is high competition between them. But if you dare to follow your passion and compete with big brands, you have won half the war.
So how does one keep up with the competition?
Many small businesses have a good product, but low sales and some have a mediocre product but great sales. How does that happen?
Marketing and advertising are the keys to high sales. Once you attract the audience, the central part is to retain them. Ensure they don't leave you for any other brand selling similar items.
Once you have reached a certain level in the market with a customer base, brand value and popularity, you have to introduce new products to retain them.
If you don't keep yourself updated with all the fresh trends in your segment, your company will be left behind.
Why do small businesses have to update their catalogue?
In today's world, the one thing constant is change. With the increasing competitiveness in the market, you need to expand your catalogue to retain your customer base and attract new ones.
For example, if you own a small business dealing in handmade earrings, your customers might buy an earring once or twice, but they will not buy it again and again. You need to create new designs add other accessories like bangles, necklaces etc.
Customers get bored of seeing the same designs and products. You need to update your catalogue from time to time, or you might lose your customers.
On your brand's website, you need to keep updating your catalogue so that every time a customer visits your website, they see your new collection and buy it. It also creates a sense of urgency. If the customer feels that the product he likes will get sold out, he'll buy it right away rather than waiting and seeing other options.
How can small businesses add a variety to their catalogue?
Adding a variety does not mean adding new and unique products every day. It is challenging to think and create unique items. Hence, launching new products once or twice a month is okay.
You can add variety in other forms. Below are some suggestions-
Colour- Let's assume you own a small business dealing in scrunchies, then you can create scrunchies in all different colours. This will add variety.
Size- You can also create scrunchies in different sizes. You can make small scrunchies and big and fluffy ones in the same design. Size is another way you can add variety. If you deal in clothing, you must ensure as many sizes as possible.
People might buy products from you, but if it doesn't fit them, they will return them. If you have a variety of sizes, then they might exchange it. This way you will not lose on sales.
Prints – you can create the same product in different patterns and designs. If you deal in scrunchies, you can make them in various fabrics with varying patterns.
Combo offers – the one thing that people love is combo boxes and deals. You can curate special boxes with your best-selling items and advertise them as gift boxes.
This way, you can present your items differently and add variety.
You can create themed boxes, couple's boxes, party hampers, bachelorette hampers, and so much more.
How has the pandemic affected the sales of small businesses?
The pandemic has given people a lot of time in their hands. Several people have taken this time to rethink their career choices and start a small business to follow their passion and kill time.
The pandemic has made people shop online rather than in malls and stores. Shopping has now become a lot more than buying necessities. It is a form of therapy. Several people call it retail therapy.
Shopping helps people calm down and be happy during these stressful times. This has helped increase sales of small businesses that sell via websites and social media.
Businesses owning a website have increased sales because people can see their products and buy them online at their convenience. Small businesses that sell via social media platforms such as Instagram are at a disadvantage because people have to inquire via a message and wait for your reply. Many people change their minds during that time gap.
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