Too many small companies continue to undercut competitors, ending up as “busy fools”, a business adviser has warned.
So-called ‘micro businesses’ — those with fewer than five employees — remain the lifeblood of the UK’s economy, but Doug D’Aubrey of Executive Training and Consultancy (ETC) reckons too many people still think the key to success is based on offering cut-price products and services.
“One of the biggest lessons for new business owners is getting used to the fact they should be promoting their services based on the quality they provide, rather than competing on price,” he said.
D’Aubrey claims that in order to grow, small businesses need to innovate, exploit intelligent outsourcing and be self-aware in order to identify missed opportunities.
Companies with fewer than five staff currently account for 20% of private sector revenue and have expanded in number by 40% during the last decade.
D’Aubrey, who has just launched a book that aims to help smaller firms prosper, also claims that failing to effectively understand, identify and define core services remains a common stumbling block for new businesses.
“By not truly understanding what it is you offer your customers, business owners fail to capitalise on their services,” he said. “How can you market what you do effectively if you haven’t clarified it yourself?”