Three Steps to Create Your Own Economy and Grow Your Business
With the current economic challenges we’re all facing, too many small business owners are finding their business moving in the wrong direction.
In many cases, what were once growing, thriving businesses are now heading into a downward spiral of cutbacks, layoffs, and, in too many cases, bankruptcies. Owners are watching as their customers dwindle and revenues drop.
So, what can a small business owner who is trying to prosper in today’s climate do to turn things around?
While you may not be able to do much about the nation’s economy as a whole, there are proactive steps you can take, regardless of outside circumstances.
Following are three steps you can use to get started turning your business around and moving, once again, in the direction of growth and prosperity:
1. Change Your Focus
Beginning immediately, stop talking about anything that is not working. Stop defending and justifying why you’re not doing better. Stop blaming the economy or whatever else you deem to be the cause of your troubles. If something is not working, continuing to talk about it will cause you to start seeing more things going wrong and continue the downward spiral.
Ask only, “What’s working?” and continue asking every day. Make a list of what is working and have your team do the same, individually and as a group. Change the tone of your meetings. If you understand that you get more of whatever you focus upon, it’s obvious why you’ll want to do this.
2. Mine the Gold That’s Already in Your Business
Every business has “hidden” opportunities which can be mined, usually by either developing new markets for your products, creating new products, leveraging the relationships you’ve built, and joint venturing with colleagues, suppliers, customers and, yes, even competitors.
Ask yourself what new opportunities you could tap into if you expanded your e-commerce offerings and maximized the technology that’s available today. Does your Web site give visitors a compelling reason to subscribe to your mailing list? Are you utilizing email marketing and auto responders to their fullest? What about social media, social bookmarking, video, podcasting, blogging, and other “Web 2.0″ tools?
Your greatest opportunity for business growth, regardless of the economy, are the assets you already have in your business. From personnel, customers – past and present – relationships with colleagues and suppliers, and other “people” assets, to your investment in equipment and technology, the assets you’ve already built represent your greatest opportunity.
And the really good news is they will require the least in either time or money.
Of these “hidden” assets, your customers are the easiest and most obvious place to begin. Do you know who they are and why they do business with you?
This may seem like an obvious question, however, many businesses do not know who is buying from them or why. Once you’ve ascertained this, you’re in a position to explore how else you might serve them.
One of my favorite questions has always been, “is there anything else I can help you with?” This simple question can increase your business tenfold.
A friend of mine is a graphic designer and print broker. One day she asked her client this question to which the client replied, “Yes there is. Can you help us get some of those imprinted jackets with our logo on them?” She happily replied that she could and took the order. (hint: if you own a small business, the answer, within reason, is always, “Yes.” You can figure out later how to deliver.)
Don’t fall into the trap if thinking just because you’ve been around a while that people know everything you do. Often we “ass-u-me” that our customers know what we do.
Leverage
You can grow your business by leveraging your relationships with colleagues, suppliers, distributors and yes, even your competitors.
Several years ago I attended a demonstration at a local copier supplier. It was a huge success as a herd of people roamed throughout the building seeing live demos of the latest in office copiers.
While the local business hosted the event, their supplier provided the factory trained experts on hand to answer people’s questions.
Nordstrom, Neiman Marcus, and Saks have regular “trunk shows” and make-up events to attract customers, again with the expertise provided by the manufacturers.
Faith Popcorn pointed out in her landmark book “The Popcorn Report” that people like entertainment while they shop.
What about your colleagues? Could a carpet or home cleaning company team up with a caterer and offer a holiday special?
Might a lawyer, accountant and banker put together a free event for their business customers? What could you do to leverage your business?
Do you have underused equipment sitting around? Many local newspapers whose presses are only used for a few hours a day, will take on outside printing jobs. Your typical weekly paper is most likely being printed on a daily newspaper’s presses.
Opportunities on the internet.
I’ve saved the best for last. If there is one area that is underutilized by small businesses, it’s your website. Ninety percent or more of local business websites that I’ve visited are nothing more than online brochures. I call them “Tombstones in Cyberspace.”
Contrast this against the sites used by internet marketers. Internet marketers, people whose business profits entirely or in part online, engage the customer with an array of techniques designed to keep them coming back, refer them to friends and leave them wanting more.
The typical offline business gets little if any internet traffic, mainly because their sites have not been setup properly or not even optimized for search engines.
What is even sadder is that if someone does manage to stubble upon their site, they have no way to connect with the visitor and develop an ongoing relationship.
Other than SEO, the easiest thing that you can do is set up some sort of “capture mechanism.” A simple subscription box connected to an auto responder will enable you to begin building a database of your customers and potential customers.
As my friend Vic Johnson, a highly successful Internet marketer who sells personal development information, said, “He who has the biggest list, wins! Or, as every online marketer knows, “the money is in the list.”
The really good part
Once you have put in place your strategy for developing your customer database, you can communicate with them at virtually no cost.
Compare this to the costs of direct mail, display advertising, radio, or TV and the advantages to email and other types of online communication are obvious.
A heating oil company, with a database of 600 prior customers, can blast an offer for a spring special to jump-start sales during their slow season, at practically no cost.
The restaurant owner who’s experiencing a slow Wednesday lunch business, can test offers for specials early that morning by sending to their database. Chances are, they’ll see an increase in business almost immediately. All at little or out of pocket expense.
If you can’t go into your business tomorrow morning at 7:30, create a special offer to jump start sales, and have it out to a list of several hundred or thousand customers by 9:00, you’re missing out on a great opportunity. Go here if you want to learn how you can grow your offline business with online strategies.
3. Develop Systems and Follow Through
Hire a business coach or appoint someone in your organization to be your team’s “accountability partner” to ensure your renewed vision is being carried out and that you are steadily moving in the right direction.
A business coach provides a fresh viewpoint and can often help by not being bogged down in the day-to-day running of the business. They are objective and not invested in the politics if your company. The best business coaches contribute knowledge acquired from a variety of situations in any number of industries and employs specific strategies to help you make quantum leaps beyond what you may have thought possible.
Regardless of the specific actions you take, it is important that you do something proactive. Don’t just sit there complaining about the economy with the rest of the crowd. Above all, don’t wait for it to turn around by itself or, worse yet, expect the government to fix it. You have within you the power to change your life and your business, so go and do it.
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