Running a business is always tough. This is particularly true for those who are running a small business. A small business owner needs to be able to accomplish many goals. They need to please clients, find good suppliers and think about ways to expand their business at the same time.
For many small business owners today, much of how they do business today is shaped by large companies. One of the world’s largest and most influential companies today is Amazon. The retailing giant has had an enormous impact on all areas of the retail market today. All businesses, both large and small, need to aware of how this company may impact their ability to thrive and succeed. Understanding this is crucial in order for any small business owner to properly plan all aspects of their business.
Creative destruction is a process that has taken place for many years. This process means that companies and consumers are responding to changes. At the turn of the last century, companies that provided horses as a form of transport were suddenly faced with the rise to the automobile. Effective companies were able to respond to changing conditions and adapt to them.
The same is true today. Any business owner of any size must be aware of factors that may impact their ability to do business. In many ways, the new business that is changing every single thing is Amazon. Savvy business owners know that they need to understand exactly how Amazon works. They also know they need to understand how they should respond to Amazon.
Intelligent policies in response to Amazon can not only help the business owner losing money as a result of Amazon’s policies. They can also think about where Amazon is not meeting a specific need or filing a niche that obviously needs to be filled. Understanding how the process of creative destruction creates not only economic losers but also economic winners is crucial in today’s massively changing, worldwide markets.
Those who are running an existing a small business or starting a new business should be aware that Amazon can create new opportunities. For example, while several large book store chains have done poorly as a result of increased competition, many new independent book stores have been formed since then. They are thriving.
The same can be true for small business owners who are willing to think out of the box and see new ways of doing things. A small business owner who knows how to spot opportunity in a world where Amazon has an out sized role and impact is a small business owner who can expect their business to start to grow. The crucial part for any owner is knowing how Amazon works and knowing what clients have come to expect from it.
A small company can use Amazon’s services to their own advantage. This is why many savvy and thoughtful small business owners see Amazon as a crucial company ally.
Ronn Torossian is the CEO of 5W Public Relations