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Almost inevitably, if someone is running a successful small business, somebody will move in next door or down the block and try to compete with them on their turf. There’s nothing illegal or unethical about this, of course, but for the guy who has been enjoying a monopoly in his little corner of the world for a long time, it creates challenges he may not appreciate having to tackle.

Joe is a hypothetical cabinetmaker who had a small workshop and showroom that he ran from his home. Most of Joe’s work came from interior designers and architects who were looking for unique pieces of furniture or furniture that fit in odd spaces that required custom made units. They were his bread and butter, while his showroom only attracted the odd commission.

For over five years, Joe didn’t have to worry about work. He wasn’t getting rich, but he always got by. Then things changed. First came the economic slowdown. It hit his two main clients first and then, as their work dried up, so did his.

Not only that, but a rival came in the form of a large furniture showroom in the new shopping mall just across the street from his. They sold everything from contemporary bar stools to European designed furniture.

Joe had set up the lathe in his workshop to produce modern bar stools and these had been the best sellers out of his little showroom. People bought them for their kitchen breakfast bars and now and then he would even get large orders from the owners of bars.

After having had it so easy for so long, Joe wasn’t ready for this new challenge. He’d had it so easy for so long and now, in the blink of an eye, he was verging on failure.

Joe took his problem to the next meeting of his local woodworking club. He took to the podium and presented his plight before the whole group and asked them for ideas. He discovered that he wasn’t alone. Almost everyone in the room was facing a similar crisis.

Although Joe had asked them for their help, it was he who came up with the answer. As small businesses, he and his friends could not possibly compete with larger showrooms that bought kitchen bar stools and other wood furniture at a huge discount. They had to create a niche market for their unique creations. Joe’s home showroom opposite the big new shopping complex was the perfect location.

Joe and his friends got together and remodelled his showroom. They advertised it as a fine furniture gallery and displayed their best work in it. It caught the eye of passersby and before long, Joe’s new gallery was getting more traffic than the larger showroom in the shopping center. Now Joe and his friends are all more successful than they were before the recession, thanks to one good idea and a cooperative effort.

Tags: income, recession, work from home

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