Adapting to the current turmoil
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In this week's USA Today the latest economic poll showed that 73% of the respondent think the economy is poor and 84% think it is getting worse. 91% are dissatisfied with the current situation. Now, when they asked if their financial situation has been harmed, only 29% said yes and 33% said not at all. Looking long term the answers staid pretty much the same. 29% say it will change and 27% say not at all. I see the same confusion in many of the small business owners I am talking to. Most are overwhelmed by the daily economic news and the deterioration of the banking systems. Most feel that all of this is throwing a wet blanket over their strategies and ambitions. When fear is taken into consideration, some even feel that conditions are so bad that nothing can be done and that strategy and plans previously made are just not worth following.
They completely miss the fact that even in a down economy there is a lot of activity going on. It's sometimes necessary to remember that -despite the desperation about the economy- 94% of the population remains employed and their needs have not changed! Yes, consumers and businesses alike are more cautious in evaluating what and when they need goods and services.
And in these areas I see the most advantage for small business vs. their big competitors. Mainly their connection to customers and the speed to market. If they use the direct connection they enjoy to their customers, for asking probing questions about their purchase priorities or their new needs, they can gain valuable insight. And, as added benefit, customers appreciate being listened to and we can use the discussion to strengthen the relationship. Combined with the nimble set-up of most small businesses, taking advantage of the insight is, in most cases, only a couple of days away. After adapting one's strategy to the new reality and refocusing the marketing efforts, most are good to go to take action on the new situation. Yes, it might be necessary to replace an offering which is no longer in demand with one which might not be as glamorous or efficient, but the name of the game it to meet demand and satisfy the customer.
The good part is that this turn can be accomplished overnight so that the long term strategy can stay in place as the guiding light through the downturn. And the success of some early adapters has proven to me that you even can grow in this less than encouraging economy.
On the other hand, giving up on our plans and strategies and doing "business as usual" is a clear recipe for disaster. If sales are at a standstill or decreasing, pushing harder with the same sales tactics, sales teams and products, will likely only result in a zero chance for change.
So start with a new fresh perspective and listen to your customers and let them propel your business.
"There are many ways of going forward, but only one way of standing still"
Franklin D. Roosevelt
And it is working! The examples are plentiful and you have seen some for yourself. Like the one from the landscape company who is now offering programs to monitor and address previous installations to ensure that the plants and trees survive. Their message is clear: the project was costly and there is an incentive to ensure that it lasts. A small maintenance fee to test and examine and to make minor adjustments and repairs. In busy times such an activity was not sexy enough to pursue.
So the message from Franklin Roosevelt is clear .... There are many ways to go forward. Standing still is not an option!
Please give us a call if you need ideas and support to find your "new" approach.
