How Local Businesses Fight Back
Starting and staying in business has never been for the faint of heart. The failure rate of companies in the first five to seven years is estimated at about 70% depending on the type of business. Can anyone anticipate the success ratio or potential problems that they will face when they start a business? And, starting a business is not just about hard work and an excellent idea. But, the promise of independence, profits, and a blooming success attracts a new army of entrepreneurs to start businesses year after year.
Independent businesses are often fixated on the perceived competition. This counter-intuitive perspective gets them to think that the local competition is the real competition. If there are businesses around you doing well, be happy that you are in an area attracting customers. Why else are there shopping centers with an anchor store and multiple car dealers one-after-another on the same street?
Lextra feels that local business vitality is essential to everyone. So, the concept of Buy Local is not just about a sense of community, which focuses on customers only. The business community is as critical as the local community, the medical community, or the religious community. The financial core of the city is the businesses, services, and manufacturing in the area.
Also, local businesses already have a new, significant threat challenge the success of community businesses. The Internet giants are slicing up the market like culinary masters. Amazon showed the way, and other massively-funded operations are following the pattern. Sector by sector, the Internet figures out how to suck the business from local services and make it more convenient and mobile app access.
Look as Carvana and Zoom that have taken on car dealership directly. This is not a novelty, but a severe threat that will quickly move from used car operations to a new car sale.
The taxi industry never saw Uber coming. They were a joke ... until they weren't. Now, taxi drivers are leaving their business to drive for a German mega-company.
How about shoe stores (shoes.com and zappos.com), clothes stores (stitchfix.com or asos.com), furniture (mayfare.com or ovrerstck.com). If your business is the service industry, HomeAdvisor.com and Angieslist.com have vacuumed up all the customer inquiries to be resold to you.
If you are running a local business, there is only one defense. It is the strength of independent companies working as a community and the power of Lextra.us