Surviving the Storm
For some time now there has been much debate as to the severity and duration of the current global financial crisis. Whatever your view there can be no doubt that many businesses are feeling the effects of the downturn.
One of the benefits of running a small business is that you can react, make decisions, implement ideas and measure results quicker than larger organisations. You can be the reed that bends before the storm, rather than the tree that is blown over. There are many things you can do to monitor and fine tune your business activities that may help provide a life jacket during the storm.
Times might be hard…but it ain’t over yet baby!
Take action- stay positive
One of the biggest mistakes businesses make, even during good times, is to do nothing at all about monitoring and growing their business. What you put your attention on grows!
Focus on finding ways to improve your business. Positive action and thought processes feed on each other in an upward spiral. Not everything you do will be a success, just make sure you use every experience as a learning tool. Your energy and vision will rub off on your staff and customers and create fertile ground for success to grow.
Take control of your finances
Have a clear understanding of your financial situation. Be aware of your costs and know what sales are needed to keep the business buoyant. Talk to your accountant about strategies to manage your business finances.
Keep staff morale high
Some of the first things to suffer cut backs in difficult times are the little benefits and privileges you and staff might enjoy. Coupled with a visible downturn in business and negative energy this can seriously change the culture of your business. It’s important not to neglect your staff…or yourself during this challenging time. Work as a team and get everyone involved in running the business. You’ll be able to draw on their ideas and by doing this you’ll also gain their enthusiasm and support.
The emotional stability of your organisation will always be detected by your customers. It affects levels of service, reliability and quality. These are all things that can either attract customers or lose them.
Keep a high profile
Don’t let your customers forget you. It’s very important to strengthen your business branding to stay top-of-mind with customers and remain competitive. Check that your branding and marketing messages are still relevant and that your materials are fresh and up to date. Advertising is often sacrificed as budgets are tightened, but don’t let your business drop off the customer radar. Talk to your local newspaper about ways to keep your business in the community eye. You can almost guarantee they’re experiencing a drop in advertisers and should be happy to find ways to help you with your advertising.
Most importantly, at every point of contact with your customer make sure their experience meets or exceeds their expectations.
Check your business focus
Times change quickly, so it’s a good thing to do a reality check on your products and services. Is the demand for your product going to be radically affected by the changes going on? For example, the development of the automobile meant a steady and inevitable decline in the production of wagons and carriages. Are you dependant on a single income source or can you diversify or include additional services or products more relevant to current needs?
Keep up to date
Be aware of what it going on in your local community, state, country and at a global level. Good knowledge of events allows you to take advantage of opportunities and act on problems.
Stay competitive
In a shrinking consumer market it’s more important than ever to remain competitive. A good understanding of your competition, their products, services, reputation and marketing techniques will allow you to take action aimed at keeping or increasing your market share. You may choose to specialise in a niche field in order to differentiate, you may be able to compete on price, service levels or value added items.
Use customer surveys
In the end, the most important thing you can do is to meet or exceed customer expectations. Customer satisfaction generates it’s own advertising and builds return business. But how do you know what your customers are thinking about their experience with you? Customer satisfaction surveys or response devices are a valuable tool to gain honest feedback about your business. These can take the form of a simple response card, and online form, a phone survey or a detailed survey conducted by a third party. At the very least, talk to your customers! The feedback you receive may surprise you! Don’t forget, it’s not only negative feedback you can act on, you may find things you excel at that can be developed into a specialist area.
Go the extra mile
Adding value to a sale can be as simple as a smile, a courtesy call or carrying product to the customer’s vehicle. It’s the little extra surprises that really stick in the mind of your customer and builds a loyal customer base. What can you do that will make your customer smile?
Develop customer incentive and loyalty programs
Consider the option of developing a customer incentive and loyalty program. When times are tough, people will place a higher value on that free cup of coffee, petrol or product discount, or other benefit.
Get help
Don’t hesitate for a moment, make sure you take advantage of the resources and skills available to you through various other businesses, Government agencies, literature, seminars and workshops.
Locally: Most communities have a local Chamber of Commerce or local business development group that will allow you to become involved in group development activities, and also draw on the experience and ideas of other business operators.
Locally & Regionally: In Australia you should be able to find a Business Enterprise Centre either located in or visiting your region. These centres provide a wealth of resources and support for businesses.
State and Federal: Also in Australia there are Department of State and Regional Development groups that provide advice, assistance, learning opportunities and in certain cases grants and funding. Check the web for your state Department of State and Regional Development. You can also start at www.business.gov.au for a wide range of information and resources.
Don’t forget to take advantage of the specialised skills of other services such as accountants, business and marketing advisers, web and graphics developers and yes, even Business Branding specialists. The cost invested in these areas will pay long term dividends in the strength and stability of your business. A simple analogy might be your car. If you try to save money by not paying for fuel and servicing eventually your car will stop running!