According to Gov.uk, at the start of 2023, there were 5,879,000 SMEs (Small* and Medium-sized Enterprises) in the UK. That’s a flabber-flustering 99.9% of all UK private sector businesses.
The Federation of Small Businesses reckons SMEs employ 16.7 million people (61% of the UK workforce), and combined turnover is estimated at £2.4 trillion. For the record, that’s 2,400,000,000,000 big ones.
So we’re not small or even medium-sized. We’re massive!
Competition’s tough
Depending where you get your stats, there are around 15,800 barbers and hairdressers, 12,200 indie coffee shops and 11,000 small dental practices in the UK. There are also 9,800 boutique hotels, 50,700 real estate businesses, 2,000 small veterinary practices, and (gulp) 2,000 web design agencies in the SME mix.
Whatever bubble you operate in, the competition’s as stiff as Alan Titchmarsh’s knees.
And unless what you’ve got is totally unique – maybe you’re the only fully licenced, left-handed trout tickler – chances are, there’s plenty of competitors lining up to nick your customers.
Everyone wants a slice of the business pie
Have a walk down Preston Street, Brighton, and you’ll get a snapshot of how competitive the world is.
Your belly’s rumbling, so you go for a wander. There’s Greek, Thai, Turkish, Chinese, Japanese, Lebanese, Italian, Mexican, Sri Lankan, Persian, Vietnamese, Caribbean, Burgers, Fish and Chips, Pizza… The choice is enough to put you off your dinner.
In fact, you could eat yourself silly at a different restaurant in Brighton every day of the week, for a good nine months, straight.
It’s the same in most industries. Umptymillion companies, all vying for the same customers. And we all know how tough business in general is at the moment. It’s the case of the incredible shrinking pie – all crust and hardly any filling. Pour me a drink! Make it a large one!
So, whaddya gonna do?
You probably haven’t got limitless design and marketing budgets. There’s much more pressing issues, like staff, suppliers, rent, ants in your pants, bats in the belfry and that b*****d VAT bill.
It’s really tempting to shove design and marketing to the bottom of the list, but here’s a couple of juicy truth nuggets to chew on:
The Design Council’s ‘Value of Design Factfinder report’ says, ‘Turnover growth is more likely for businesses that increase their investment in design.’
And the Thinkbox-commissioned report – ‘Profit Ability 2: the new business case for advertising’ – found that advertising averagely has a short-term return of £1.87 per £1.00 invested. And there’s a longer-term return (sustained activity up to 24 months) of £4.11.
That’s (gets calculator out) 41x better than sticking your dosh in the best UK ISA for a couple of years.
So you gotta think big, baby. Not necessarily spend big, but start looking and acting like a big brand. Take your identity seriously.
Design isn’t an expense; it’s an investment
A ton of research has been done into the business value of branding, design and marketing. Everyone concludes that design-led, strongly branded companies punch way above their weight.
That’s because people don’t just buy stuff based on facts; they buy with their heart and soul. What they perceive your company to be is just as valuable as the products or services you sell.
Belief in a brand, makes people part with their hard-earned cash. It’s not just down to the price tag, it’s what they think and feel about you and your business that counts.
Differentiation, recognition, trust, clarity of message, customer loyalty and turnover are all impacted by brand and design. Done with flare, it can help make you famous – all of a sudden you’re not part of the race to the bottom, competing on £££. People know and love you. They haven’t even met you yet, and already they’re itching to empty their piggy banks into your twitching mitts.
Of course, this assumes the creative work is strategically sound and executed with grit, wit, and backbone. And an even bigger ‘of course’ – you’re going to have to back everything up with a cracking business offering, or they’ll buy once, then walk a mile.
But, in the right hands, big, beautiful design thinking could be the difference between your business getting noticed, or simply getting left behind.
Luckily, we know someone who might be able to help.
dollop. creativity with splattitude
* 5.51 million small businesses of 0 to 49 employees, and 36,900 medium-sized businesses of 50 to 249 employees.
