Have you ever been to Crickhowell in the Brecon Beacons. Back in 2018 the town’s businesses went offshore using a similar scheme to the ones that companies such as Starbucks use to avoid paying taxes in the UK. It was filmed by the BBC as they were hoping to highlight the problem of competing with multinationals who can reduce their costs by paying only a small amount of tax.
Things have changed a lot since then in the world of tax avoidance, but I think the best way of dealing with the problem of competing with big business is to offer a service or product that they can’t. I personally avoid Starbucks and Cafe Nero, not because of tax avoidance (most people would if they could) but because I want to be able to sit down and be served in a more relaxed environment than they provide. I know a lot of people like the bustle and energy but I just find it too noisy and rushed. (Yes I am probably getting old, but so is over half the adult population and we are generally the ones with the time and the money)
And if you want people to hand over their money you need to give them the experience they want not just a commodity. Starbucks did it with their concept of a place to meet, and it’s the secret of their success but like anything, it doesn’t appeal to everyone.
So what can you do that the others don’t or won’t? How can you beat the competition by ensuring you have no competition?