The ratio of perceived value to dollars paid in every aspect of the world of business has changed. Consumers and vendors alike are looking for extreme value for every dollar they spend on a product or service. You see this challenge everywhere, with the huge discounts offered and even free giveaways to entice you into dealing with their company. This trend is dangerous, yet it cannot be ignored. In a time when the older generation wants to relax and the younger — perhaps spoiled — generation expects more for less effort at work, the opposite has occurred.
To professional services firms, large chain stores and commodity retailers, attempting to survive this onslaught has become perilous at best. With margins shrinking and costs rising, many small business owners see a perfect storm approaching. What should you do?
For some, the answer is unclear. Do you attempt to supply your customers and clients with much more perceived value than you did in 2008 for the same or less cost? Can you financially and, more important, emotionally handle this new reality? Is this unfamiliar situation making your business plan obsolete?
The answers to these questions need to be individually addressed but not ignored. Unfortunately, there is no longer a simple, golden-parachute time to rest or play. Instead, you must reconnect with your chosen profession, compete for the business of your past customers and fight – fight – fight. Welcome to 2010!
Engaging with a business coach is more important than ever. Such a consultant has the unique insight that comes from working with many different industries and businesses. These associations and insights will help you reformulate your plans, re-ignite passion and focus you and your company on results. Sleepwalking through your days in denial of these new changes is not viable option. In the unenviable event that the only solution is to close your company and start over, it is better to face the inevitable than to waste valuable time. Take action today!
Tough economic times require decisions that are as unique as your business. Why then, are so many independent business owners following the pack and taking action that could significantly hurt, if not kill, their business going forward?
Re-think the lay-offs. Think about it: If other companies are reducing their workforce; they are, in effect, backing out of the marketplace:
- They have reduced productivity
- Their customer service levels will begin to suffer
- They will not be able to react to a customer needs quite as quickly
- When things do turn around, they’ll be spending big bucks on hiring and training
This is the perfect time to push forward, not to pull back. Don’t follow the pack. Find creative business ideas to keep your employees busy, productive and employed.
The best time to promote your business is when everyone else has stopped promoting theirs. Marketing budgets at most small companies have been cut back severely, if not eliminated all together. That just increased the value of your marketing dollar ten-fold. Be one of the few out their promoting while the rest of your competition hides out, waiting for things to improve.
Here are some things you can do for little or no money that go a long way for your reputation in this environment. When appropriate, take pictures and tell the local press:
- Together, with your employees, do something that needs done in your neighborhood.
- Put on a food drive – get people into your business.
- Accept donated items for our troops. Pay for the packing materials and shipping.
- Adopt a family in need, provide the funds and ask the employees to do the shopping.
- Be a mentor to small business owners starting out or struggling.
Don’t take out the water cooler. Think through all of the possible ramifications of a decision. Take the water cooler for instance. Seems like an easy way to save a few bucks, right? Wrong.
- Employees are drinking less water. How does that affect their health?
- More individual 16 oz bottles of water will be consumed. How does that affect our environment?
- Employees are spending their disposable income on something the business previously provided. How does that affect their attitude? Company morale?
Think everything through. Before you jump on the bandwagon; you might want to ask yourself which direction it’s headed!
If you’re taken with the increasingly popular social media trends and spend any time at all on Twitter, LinkedIn or Facebook; you could be feeling a little overwhelmed by the multitude of ideas. I know I am.
As business owners we can’t ignore popular trends, but I wonder if the constant learning, re-learning and worrying if we are doing the right thing at the right time is healthy for the growth and ultimate survival of our companies.
I’ve been giving this topic a great deal of thought and I’m slightly concerned that we, as entrepreneurs, may be abandoning the tried and true principles that truly do benefit a business by chasing the ever elusive next great idea. Are the messages of some of the most brilliant minds in business; Peter Drucker and Michael Gerber for example, being overshadowed and drowned out by all of the social shouting going on around us?
I’ve come to the conclusion that sticking with what I know works and keeping my eye on emerging trends and ideas that may benefit our business is good for growth. Ultimately, testing some of these ideas and then tweeking the principles that we know to be effective might just be the best solution. In other words, I’m not getting sidetracked by whomever happens to be shouting the loudest and my business won’t be sidelined in the meantime.
Does it feel like your Small Business has done nothing but put you in debt and suck up all your free time? You’re not alone. Almost every Small Business Owner struggles under the weight of responsibility that comes with entrepreneurship. Someone I respect a great deal once told me, “When you own something, it owns you.” This was his response to our discussion regarding his decision not to purchase a summer home. The same can said about the decision to own a Small Business.
There are many reasons for starting a company:
- Freedom
- Income Potential
- Security
- Be Your Own Boss
- Because You Can
- and the list goes on…
Why then does a small business take us down a path that seems to be the exact opposite of why we started the journey in the first place? The reason is simple; the business wasn’t started with a specific goal in mind. For instance; the business will generate $1,000 a month in profit that will be invested until it generates $10,000 a month in passive income. Rather, when we start a business we hope and pray to make enough money to replace our income and cover our health insurance premiums!
Without a specific means-to-an-end for the company, we’ve just bought ourselves a job. With a job comes never ending tasks. Finish one and ten more emerge and eventually the only thing you can see is a never ending stream of work ahead. Your vision, your passion and your energy are gone.
STOP: Think outside your box for a few minutes. Get clear on your goals, what you want your business to deliver and put a time limit to those accomplishments. Separate the technician day-to-day busywork from the necessary entrepreneurial goal work and watch as you and your business emerge from the mountain of tasks that are burying your potential.
This is a very common question from entrepreneurs. It can seem strange that when you opened your new business sales grew right away, in fact they probably shot right up to where they are today and no matter what you do, you can’t seem to break out and take the company to the next level. Even more perplexing is that all of a sudden competition opens up down the block and their sales soon match yours. Where was all this business before they opened up down the street? Why didn’t those customers utilize your services?
The crux of the problem isn’t a lack of new customers. It’s because your company has most likely reached capacity. Trying to deal with an influx of new customers would throw your business out of whack because you wouldn’t have the operational strength to deal with them. If you want to grow your company, all four areas of your company; Sales, Operations, Money and Employees, have to be properly organized, aligned and ready for more business.
Is it a lot of work? Yes, but you have to grow your small business capacity before you can grow your sales.
We were introducted to Bob Scott through our local tool rep. In a little over a year, working with Bob Scott, we have made improvements to our building, purchased new shop equipment and implemented an ad campaign--while increasing our net profit. We are very happy with the results and can heartily recommend Bob."
The ratio of perceived value to dollars paid in every aspect of the world of business has changed. Consumers and vendors alike are looking for extreme value for every dollar they spend on a product or service. You see this challenge everywhere, with the huge discounts offered and even free giveaways to entice you into dealing with their company. This trend is dangerous, yet it cannot be ignored. In a time when the older generation wants to relax and the younger — perhaps spoiled — generation expects more for less effort at work, the opposite has occurred.
