Introduction:
Is your business feeling the pinch of rising living costs? You’re not alone. As the cost of living soars, small businesses in the craft alcohol and service industries are under pressure. With nearly half of the U.S. workforce employed by small businesses, your role in the economy is more crucial than ever. But as consumers tighten their belts, the challenge is clear: How can you ensure your business not only survives but thrives?
Despite these challenges, 2024 brings a silver lining. Consumer preference is shifting towards supporting local businesses. Middle-income Americans, even amidst economic uncertainty, are increasingly inclined to spend on local products. To seize this opportunity, you need more than just great products and excellent service. It’s time to adopt new strategies that align with changing consumer behaviors and today’s economic landscape.
Explore five actionable ideas to help your small business not just survive but flourish during these challenging times.
1. Position Yourself as a Local Champion
In today's market, consumers have a growing appreciation for local businesses. If your product or service can rival that of a national chain in quality, you’re already a step ahead. To capitalize on this preference, emphasize your local roots in your marketing efforts. Showcase how your business contributes to the community—whether by sourcing locally, supporting local events, or simply being a familiar face in the neighborhood. By reinforcing your identity as a local business, you’ll not only attract customers but also build a loyalty that larger chains find hard to replicate.
2. Foster Mutual Support with Other Local Businesses
Building a network of mutual support with other local businesses can be a game-changer. This could mean forming partnerships, referring customers to each other, or even collaborating on joint marketing campaigns. For example, Rear End Gastro Pub hosts a monthly tap takeover for local breweries, and on August 14th, they’re featuring a “Beers of the Allegheny” event. This event highlights multiple breweries and offers a unique experience for their customers. Such collaborations help all businesses involved by expanding their reach and creating a strong, interconnected local economy. When the community sees this cooperative spirit, they’re more inclined to support businesses that support each other.
3. Strengthen Relationships with Local Suppliers
Choosing local suppliers over larger corporations offers numerous benefits. Not only do you enjoy more personalized service, but local suppliers are often more flexible and willing to negotiate terms that suit your business. By choosing local, you’re also contributing to the local economy, which in turn helps keep your customer base strong. Contrary to popular belief, local suppliers aren’t always more expensive. For instance, many brands on Bevrock are less expensive than their national competitors and even offer delivery. By making smart choices with your suppliers, you can improve your bottom line while supporting your community.
4. Implement a Robust Customer Loyalty Program
Large businesses understand the value of rewarding loyal customers. If your small business doesn’t have a loyalty program, it’s time to implement one. With household budgets under pressure, consumers are more likely to choose businesses that offer tangible rewards for their continued patronage. Most modern POS systems include built-in apps to manage loyalty programs, making it easier than ever to set one up. For example, Square offers a loyalty app for $45 per month—a worthwhile investment if it drives foot traffic. Don’t let competitors lure your customers away with free appetizers or discounts. Ensure your customers feel valued and rewarded for their loyalty. Remember, it’s much more profitable to retain a customer than to acquire a new one.
5. Leverage New Legislative Opportunities
Staying informed about changes in local laws can open up new opportunities for your business. In Pennsylvania, for example, recent changes to happy hour regulations now allow bars and restaurants to extend happy hour from 14 to 24 hours per week. The daily limit remains at 4 hours, but starting September 13, 2024, establishments can also offer two discounted food and drink combinations each day. This new flexibility is an excellent opportunity to attract more customers during off-peak hours, boosting overall sales. For instance, implementing a “late night” happy hour at a distillery could drive after-dinner drinks, especially in venues with limited food options.
Conclusion:
Navigating the current economic landscape requires small businesses to be more agile and creative than ever. By positioning your business as a local champion, fostering mutually beneficial relationships, leveraging local suppliers, implementing effective customer loyalty programs, and staying informed about legislative changes, you can not only survive but thrive in these challenging times. The key to success lies in your ability to adapt and connect with your community, turning challenges into opportunities for growth.
