A:
Indeed I do hear from lots of small
business owners and they do seem to have a few things in common. For one,
they are definitely trying and experimenting with new, affordable business
strategies right now; there seems to be a lot of trial and error going on
out there. Secondly, and paradoxically, they are not forgoing the
tried-and-true as they ride out the recession (the worst of which seems
over.)
Here are
a few of the new ideas that I have heard about that seem to be working well
these days:
1. Make some new online friends.
Social media is busting out right now for a reason - it's working. If you
still think Twitter is hogwash and that it is nothing more than a tool for
Ashton Kutcher to build buzz, you are wrong. Twitter has become a valuable
business tool that is allowing small business owners to connect with people
in ways they otherwise could not.
Think of Twitter as a conversation.
You can either choose to engage in it and be part of the discussion or you
can watch from the sidelines as the people who are participating make new
friends and business associates. Who do you think will get more business?
And of course Twitter is not the only
game in town. LinkedIn is a fabulous business tool, as is Facebook and
others. The important thing is that you engage in this new online world. It
will make a difference.
2. Lower your prices. First let
me say that lowering your prices is a strategy that needs to be done
thoughtfully as there are dangers involved:
-
You don't want to devalue what you
already offer
-
You don't want to get customers
used to the lower prices
-
You don't want to damage your
brand if yours is a more high-end business
-
You will cut into your margins
That said, strategically lowering
prices is an idea that can have a lot of merit because it is what customers
are, by and large, looking for these days.
There are many ways to do this of
course. You could have a sale, you could create a bargain bin area, you can
eliminate high-end products, or you could simply cut prices across the
board. Whatever method you choose, make sure that you trumpet it loudly.
Cutting prices alone is not enough. It has to be done in conjunction with a
loud announcement of the same. That is how you get the biggest bang
for your buck.
3. Focus your efforts where you
will get the highest return. We have all heard of the 80-20 Rule which
states that that 80 percent of your business comes from 20 percent of your
customers (or, similarly, products.) Savvy small business owners are using
this these days to boost business.
At a time when there is little room
for error, being more effective makes a lot of sense. If this means hiring
an assistant to handle your more routine tasks, then so be it. With the high
unemployment numbers right now, there is no shortage of very capable people
who can help you.
Or, similarly, be like my friend
Susie: Ring your local university and hire yourself an intern.
Either way, freeing yourself up to
spend more time growing your business and less time answering emails can be
a very good move.
4. Keep your overhead low. Cut
costs. Lower your rent. Get new bids on phone service and insurance. Find
cheaper vendors. Turn an employee into an independent contractor.
Telecommute. Use an executive suite. Keep your overhead low.
5. Be great at something.
People hire you because you do something very well, and especially in an
economy like this one, being great will be rewarded. Here's a simple, but
significant, example: We use an occasional housekeeper whom we love, which
is no small thing as my sweet wife is a bit of a clean freak. We have been
through several housekeepers over the past few years.
And then we met Nona.
After Nona has been to the house it is immaculate. Spotless.
And not surprisingly, we have recommended her to several friends. So Nona is
a reminder that people patronize your business because you perform a needed
service, or you offer a needed product. If you do those things exceptionally
well, they will continue to be your customers.
Don't, and they won't.
Need a speaker for your next
event? 
