How Small Software Company Competes With Big Players

Running a startup software company can often feel like swimming in a shark tank. Big Tech employs millions of people worldwide and has a seemingly infinite budget to transform ideas into reality. However, as an ambitious software entrepreneur, you shouldn’t feel discouraged.

How Small Software Company Competes With Big Players

Small software company have their own advantages over big players, and there are strategies that put success within your reach. This article will arm you with a few tactics that will put you head-to-head with the giants of your industry and give you a chance to win big.

Find Your Niche

As a small software company, your resources are limited. It makes no sense for you to go toe-to-toe against the big players for the same audience. You’re going to lose every time. However, appealing to a smaller number of people means you can personalize your message and your product.

“Addressing a very specific need cuts marketing costs because you don’t need to cast such a wide net”.

Additionally, niche markets can’t sustain many players, so competitiveness remains low.

Finally, customers are usually ready to pay more for a specialized product, translating into increased profit margins.

The real challenge is finding an untapped niche market.

The first step is to uncover a need that goes unmet. Next, see if you can develop a software solution for it. If your solution is practical and feasible, congratulations. You may have found your niche.

Some markets are too small to come up on the radar of Big Tech. Those niche markets represent the most significant opportunities for startups and small players to thrive.

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Step Up Your Design

We live in a visual society. Emphasizing design can put you ahead of the curve and improve your position among the competition. A good logo and a stunning website can work magic. They can legitimize your software company, making it appear as established and influential as the big players in the game.

Good design also makes you recognizable and builds your identity. It’s a shortcut to company growth! The best designer for your company isn’t necessarily the most expensive one. If your software company is a startup, you may find that the best designer for your brand is someone young and bursting with ideas.

Once you find the right person, communicate the purpose of your brand and mission so that the designer can translate that into visual language.

Don’t be afraid to stand out! Your goal here is to attract attention. Whatever your software company does, great design is often enough to make a client choose you over a tech giant.

Grow Your Customer Base

Every potential customer is a battle to be won against the big players of your industry. Growing your customer base is an excellent way to gain ground in the competition. Growing your customer base is a way for your software company to increase its market share and gain a competitive edge by increasing its influence.

A loyal and steadily growing customer base also makes your company sturdier and more resistant to economic turmoil.

“To boost your customer growth rates, you should focus your efforts on finding the best ways to generate leads”.

Traditional business still favours emails and calls, but software startups have a lot to gain from online methods of attracting customers, such as social media and SEO marketing. For instance, 60% of SaaS companies have reported using content marketing to attract new clients.

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As much as 31% said they found the method successful. When your customer base is growing, that’s a subtle but powerful sign that your software company is winning against the big players.

Make Engagement Personal

Big software companies have a weakness that startups can easily exploit. They’re too big to engage their customers with a personal touch. Customer engagement is where your size works to your advantage. With a smaller number of clients, you can communicate with them on a more personal level.

This is crucial for growing trust and brand loyalty. Engaging is easy when you dedicate enough time to respond to clients’ questions, check in on how satisfied they are with your product and interact with them on social media.

People love feeling heard, so the more emails and comments you reply to, the better. Do your best to present your software company to your audience. Share content and news frequently, and be authentic. People respond best to companies that are attached to a face and a name.

A small software company may not have thousands of clients (yet). But, by making engagement personal, you do have a chance to gain faithful, long-term customers.

Software Company Need to Take Risks

Another advantage startups have is agility. You should use it to take risks and seize opportunities big players miss. Boards and stakeholders operate Big Tech. When a risky opportunity arises, so much approval and calculation are needed that the window of opportunity sometimes closes.

“Use your size to your advantage and take risks for the chance to develop your company in bounds”.

That doesn’t mean rushing into the unknown blind, though. Savvy entrepreneurs navigate new territories armed with information. The more you know, the smaller the risk. Risk assessment is equally important.

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If objective factors tell you that an endeavour is too risky, you shouldn’t go through with it, regardless of your feelings. That being said, it is also important to fail every once in a while.

Our failures sharpen our instincts for future risks. Don’t let fear prevent you from achieving your potential. Use your knowledge and your curiosity to take risks and make the big players follow your lead for a change.


Big software companies have the benefit of big budgets and numerous staff. Their appetites are large, but their vision is narrow. As an ambitious, knowledgeable software entrepreneur, you have all the predispositions to compete with the giants successfully.

Keep your eyes open and jump on markets and opportunities they have missed. Equally important, value your customers and treat them with respect. And who knows—in a couple of years, some starry-eyed young techie may be reading this article to find tips to successfully compete with you.

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Lisa Michaels is a freelance writer, editor, and a thriving content marketing consultant from Portland. Being self-employed, she does her best to stay on top of the current trends in business and tech. Feel free to connect with her on Twitter
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