Opinions about small businesses are like belly buttons, everyone’s got one. And the false ones travel faster than juicy gossip through a group of teenagers.
We don’t know where these myths about small businesses started, but we’re stopping them in their tracks and helping entrepreneurs break the stereotypes against shopping small.
Myth #1: Most Small Businesses Are Cash-Only
This myth might have been true in decades past, but it’s died alongside the cash-only model. Digital payment is the preferred transaction method of most consumers. In fact, they told us so.
Younger generations have ushered in a digital movement that small business owners everywhere are adopting. And everyone from Gen Z to Boomers are hopping on the bandwagon.
Convenience is the driving force of the shift to digital payment methods. Consumers want the simplicity of paying with their phones, clicking a link or tapping a credit card.
And, if your business is one of the cash-only hold outs, your bottom line will suffer.
Myth #2: Small Businesses Have Poor Quality Products and Services
This small business myth is so far from the truth, it’s laughable. Quality is a touchstone for small businesses because they operate on a crowded battleground where every transaction with a consumer is important.
When you compare prices between a small business and its big-box counterpart, the local choice may be slightly more expensive.
Consumers should understand that this marginal cost increase is directly related to the quality of craftsmanship in a product or service.
Quality doesn’t stop at what they sell either. Small businesses offer a higher quality experience and a better chance of being treated like a person instead of an invoice by choosing them.
We know raising prices on your products or services can be a bit scary, but if you communicate effectively your customers will understand.
Myth #3: Small Businesses Can’t Care for Me the Same Way Big Businesses Can
Some consumers think: the bigger the business the better the experience. But, that’s not the case with this myth.
Small businesses are just as capable of building strong relationships with customers. In fact, the phrase, “go the extra mile” or “above and beyond” is hardwired into the DNA of most small business owners, and for good reason.
Research has shown that there is an 80% increase in revenue when businesses focus on customer experience.
Personal connections, trusting relationships and positive customer experiences are a proven concoction for growth and success.
Myth #4: I Can Only Do Business In-Person, Not Online
A simple Google search is enough to put this small business myth to bed. Go ahead, we’ll wait. Google a few small businesses and see just how many ways you can digitally connect with them.
A lot of consumers don’t want to pick up the phone or drive to a store and prefer a contactless solution for doing business.
Small business owners have heard the word “contactless” a lot in the last couple of years, which is why more of them offer online purchasing, booking, payments, events and more.
Small businesses can go digital without giving up ground on being human, too. By focusing on customer-centric ways to improve workflow digitally, small business owners can be more efficient and provide the same level of personalization.
Myth #5: Shopping Small Doesn’t Make an Impact in My Community
Small businesses and their communities have a symbiotic relationship. They supply character and add value to a community, and the community reciprocates by choosing to do business with them.
When consumers shop small, they stimulate the local economy. When the economy is stimulated, property values and quality of life increase.
According to the U.S. Small Business Administration, 48% of every $100 spent at a small business stays in the community, whereas only 14% would stay if you spent $100 at a big business.
Small businesses also hire locally and support other small businesses when they need products and services themselves. Community, above all else, is at the heart of every small business.
Just because a businesses small in size, doesn’t mean it can’t keep up with, or even outperform, the big ones.
In fact, we’ve shown they can be convenient, tech-savvy, personable and play a major role in local economies.