The Small Business Types: Which is Yours?
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Ideating, investing in, and maintaining your small business requires consistent time and effort. In addition to the day-to-day upkeep of your business, you have to work to get your name out there. As you consider the best way to market your business, you might first need to identify what kind of small business you are. While each small business is unique, there are three primary small business types that dictate the most effective digital marketing tactics.
Below, we’ve identified these three small business types and given you the framework for the ideal marketing tactics.
(P.S., if some of the marketing tactics below are unclear, cross reference them with: Marketing Terms Every Small Business Owner Should Know.)
Small Business Type #1: Local Retail
Characteristics
You’re a small business that relies on foot traffic for your sales. Most of that comes from local customers.
Strengths
Whether you’re running a coffee shop competing with the name-brand spot around the corner or an auto repair shop challenging the downtown chain-store franchise, you have a prime opportunity to attract loyal customers who choose your personalized care and service over a commercialized experience.
Challenges
Location is everything. You need a space that’s accessible and visible on all fronts. Generating awareness for your brand and building consistent foot traffic takes time, especially if you’re competing with nearby mainstream brands .
Digital Marketing Tactics
The best strategies for your business involve paid, targeted advertising. This allows you to focus your money and effort on the right audiences rather than an ineffective catch-all approach. Some of these specific marketing approaches include:
Local SEO: Optimize your website and content for location-based searches (e.g., “best coffee shop in Lancaster”).
Geo-Targeted Social Ads: Use social media platforms to reach customers within a specific radius of your store.
Email Marketing: Promote seasonal offers, loyalty programs, and flash sales to a segmented local email list.
Small Business Type #2: E-Commerce
Characteristics
Your sales come from an online shop. You may have a physical storefront, but you work primarily online.
Strengths
Your product is available to anyone with internet access, meaning your reach extends beyond a physical location.
Challenges
The online world is saturated with information and other businesses. Building a distinct brand and voice that’s heard among the hubbub takes patience.
Digital Marketing Tactics
The digital space is crowded. Competing with other online businesses (and massive retailers) means you need a strong brand, a clear value proposition, and consistent online visibility to stand out. Incorporating the following tactics can help boost awareness and authority:
Paid Search and Shopping Ads: Capture high-intent traffic through Google Shopping and search-based campaigns.
Paid Social Media Ads: Use retargeting, product carousels, and lookalike audiences to reach and re-engage shoppers.
SEO and CRO: Optimize product pages with long-tail keywords. Use conversion rate optimization tactics like A/B testing, urgency messaging, and user reviews for your website and products.
Email Sequences: Implement automated flows like cart abandonment reminders, product recommendations, and post-purchase follow-ups.
Small Business Type #3: Service-Based
Characteristics
You offer a skill or expertise as a service; think electricians, fitness coaches, consultants, or agencies like Spark. Your business may be location-based, virtual, or a hybrid.
Strengths
Your offerings are often more niche, where a majority of the population does not have time or resources to fix the perceived issue themselves. You are therefore the most uniquely suited to offer the best service with the most flexibility to customers who have financial constraints.
Challenges
Your audience may want DIY options if they believe it will save them money. Additionally, if you don’t have a visible digital presence or reputation, it’s easy for you to be overlooked.
Digital Marketing Tactics
Your business will thrive as you build a treasure trove of information and resources that prove you to be a source of authority. Some successful marketing strategies for your business include:
Content Marketing: Publish strategic, niche blog articles, case studies, and videos that demonstrate your knowledge and build authority in your field.
SEO-Driven Website: Build a fast, mobile-friendly site optimized for service-specific keywords (e.g., “personal training for moms in Philly”).
Google Ads (CPC): Drive leads with search ads targeting problem-based queries.
Paid Social Media: Share helpful tips, client successes, and promotions to drive engagement and visibility.
Email Campaigns: Create automated series to educate, build trust, and move leads toward booking or buying.
What’s Best for Your Small Business?
So what kind of small business are you? What marketing practices do you want to implement? At Spark, we know that, while there are basic practices best for each kind of business, yours is unique and needs unique strategies!
If you’re looking for tailored support and a small business that will listen to you instead of blindly prescribing, try a free consultation today to meet a team ready to help you succeed.
