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Education

Being small is a who work directly with merchants don't always
have access to decision makers; communication can
get lost in the chain of command.
competitive advantage • React quickly: Big ISOs/acquirers are known for

moving slowly. As a nimble small business, you
can pivot. Rather than fighting through layers of
management, policies, and politics, you can react
quickly to both success and failure.
• Innovate: Constantly test new ideas, from
product offerings to delivery models to marketing
campaigns. It's harder for big companies, weighed
down by bureaucracy, to test new ideas. You have
the flexibility to do it quickly and easily. Relying on
data to gauge success is your best path to innovation.

Small merchants are powerful, too
Small merchants have shown a remarkable ability to
execute quickly to compete in crowded markets. I think of
By Mike Ackerman the power of small merchants every time I eat at Rosanna's.
DigiPay Solutions Inc Of the five coffee shops within a block of our office, it's
our company favorite. What makes it special? The owner
e're living in super-sized times, surrounded and her daughters know all their repeat customers'
by super ISOs and mega acquirers with mil- names, source only quality food and support our local
lions to spend on marketing and technol- community. Their business model revolves around giving
W ogy. Imagine what you could do with half back. Buying food from them, instead of a big chain, makes
their money. Then imagine paying millions in payroll, me feel like I'm doing some good in the world. How's that
telecom and compliance fees. Being big is a blessing and a for a differentiator?
curse. You have celebrity status as a global brand, but the Outrun the big dogs
stuff you built can get old and weigh you down. While
you're propping up your legacy technology, tiny startups Our industry is replete with small companies that have
are running circles around you. disrupted big organizations. I recall working for a small
company that had no marketing department and just one
Offered a choice between David and Goliath, most cash advance company as a value-added service. A $1
people would choose David. Why? It's exciting to face big billion printing company was stealing our agents.
challenges. How can you, a small business owner, go head
to head with a big competitor? Like David, you must be I was just in sales, but saw an opportunity, and my
flexible, nimble and learn to do more with less. Following company was willing to give me a shot. We switched gears
are ways to sharpen your aim and leverage your slingshot. and adjusted our marketing strategy, adding five more
• Specialize: Become an expert in a specific area. You cash advance offerings and 20 additional vendors to our
cannot be all things to all merchants. That's why it's value-added solutions portfolio. Then we created a new
important to develop your area of expertise. logo with vibrant colors on tradeshow shirts and business
cards to create a one-stop branding platform. We not only
• Know your market: Research and identify your won back our agents, we grabbed a lot of market share,
core customers and create an exceptional customer too.
experience.
• Find your differentiator: Decide what you can do Believe in yourself
to be exceptional and demonstrate how you can Small size can be a big asset. Embrace your entrepreneurial
deliver that difference. spirit, and do the things big players can't. When David
• Get to know your merchants/prospects: Without faced Goliath, he brought only laser-like focus and
your merchants, you don't exist. Read your customer good aim. When you create unforgettable, personalized
service email requests and participate in calls. These experiences for customers, you build loyalty and trust as
are places where your larger competitors lose sight. well as a profitable book of business. Don't worry about
• Build relationships: When your portfolio is small, what others do. Just worry about what you do. If you
follow this, you will surely succeed.
you can build true relationships with merchants.
Visit local retailers processing with you. Stay in touch. Mike Ackerman is President of DigiPay Solutions Inc., which specializes
Learn what they really want from you. If you can't in high-risk, high-volume, card-not-present and business-to-business
chat in person, call them. Remember, staff members merchant services. Contact him at mike@digipaysolutions.com.
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