Published April 2008

Change is Good

By Anne Houlihan (page 28)

Here is some practical advice on how you can make your business prosper, even when the market or economy is changing and times are hard.

Many business owners and managers feel their industry is changing rapidly, and they think it’s more difficult to do business today than it was just a few years ago.

Certainly, the nightly news is full of stories about industry after industry facing financial setbacks, employee shortages, and increased competition. But just because some companies are struggling to get ahead, the same doesn’t have to happen to you.

In fact, if you take a new look at your com-pany and your situation, you may find many opportunities for growth and success. The key is to embrace rather than dread the change that is happening around you.

Let’s face it: Change is scary. Life is simpler when everything remains the same: same customers, same orders, same processes, and same routines. But hidden within sameness are mediocrity and complacency — the two enemies of growth and success. If you want to come through a changing economy unscathed, you need to view your company, customers, and processes in a whole new light. To do so, consider these five guidelines for making the most of any economic challenge.

1. Focus on what you already have.

Your existing customers are your No. 1 asset. Therefore, survey them and talk to them about their needs. Is there an unmet need you can fulfill? Can you make their business easier to run in some way?

A simple way to find out is simply to ask. You may discover that they have a need for an additional service you provide. Even though they’ve been your customer for years, they may not be familiar with all you offer.

Most of the time we sell people the same product or the same service line. In a changing economy, you need to find out what else your customers do or what else they need. Since their industry is likely changing too, they’re probably changing the way they do business to stay competitive. You may just be the perfect supplier for their growing needs. But until you ask them, you’ll never know.

2. Do a sales analysis on your current customers and clients.

Organize your client or customer database by category. Then do a little research to determine:

• Which sectors are still growing in the changing economy?

• Which sectors are down?

• What opportunities do you have with your clients that are growing?

• How can you help clients that are struggling?

3. Examine your infrastructure.

Chances are there are many inexpensive ways for you to improve and streamline your company for more efficiency. However, in the past you’ve simply been too busy to take notice. Now that times are changing, make sure you and your employees are using your proper procedures.

If necessary, have a meeting or training session so everyone is up to date with the efficient systems. Review each department’s responsibilities and eliminate tasks that are no longer necessary.

4. Fine-tune your marketing.

If you want to attract new customers, and retain current ones, you have to let them know you exist. How is your company’s marketing exposure? Do you stand out from the competition? Are your customers aware of your full range of services?

A changing economy is an ideal time to tweak all your marketing messages, including your web site, your brochures, your sales letters, and even your business cards. Granted, during a slow time many companies don’t have expendable cash.

Realize, though, that you don’t need to do everything yourself or start from scratch. Many business templates are available for low cost or free that can help you improve your marketing messages. These include everything from web site templates to pre-made letterhead designs. Look for and use inexpensive options that are available.

5. Conduct an overall cost analysis.

Look at where you can reduce your overhead, thus showing more profit. For example, can your employees negotiate with supply providers for a better price? Can you use some local vendors and virtually eliminate shipping costs? Can you get office supplies from a less expensive source?

Now is the time to challenge what you’ve always done and discover new ways to save money. Usually when we’re busy and doing well, we don’t have time for such things. Now is the time to dig deep, question everything, and find those cost savings.

While a changing economy can be a scary time, it’s actually a prime time for growth. If you simply look for opportunities, you will find them. So be aware of economic changes and the potential downfalls, but don’t make it your reality.

Remember, only you and the decisions you make can create your company’s reality. In the end, by simply following the three P’s — displaying Positive, Proactive Perseverance — you’ll be amazed at how your business can grow. And you’ll be glad you said “yes” to opportunity.