| Small businesses today must adjust to a new | | | | store in Southern California. Customer traffic has |
| economic reality as drastic and impactful as any it has | | | | dropped like a brick during this downturn. Our answer |
| ever confronted! Less customer traffic and demand, | | | | is the conversion of our store from a "retail focus" to |
| less credit availability for your business (as well as for | | | | a "warehouse focus" and concentrate on finding |
| your customers), less access to trade credit and | | | | commercial design and propping uses for our |
| more cash on delivery and in advance terms. What is | | | | products instead of being totally retail consumer |
| the answer? A "total redo of the methods and | | | | oriented. In the past year we have taken "dead |
| concepts of how you do business"! There is still | | | | times" during the day to build and recreate pieces of |
| business out there... but it is through a different | | | | inventory into new design products, have found a |
| aspect of your existing business model requiring new | | | | chain of stores that uses rustic antiques for decor, |
| thinking, new adaptations of your existing products | | | | have done small scale design projects for small |
| and services, expense structure, marketing and most | | | | commercial customers, have gone outside of our |
| importantly your thinking! | | | | store doing more flea markets and antique shows |
| What is the new reality for small businesses? Here is | | | | instead of waiting for customers to come in the |
| some areas of thought to address and rethink if you | | | | door. When we focus on commercial uses of our |
| are to prosper (or at least survive) this "sea change" | | | | product instead of waiting for our retail traffic to |
| of new business reality. | | | | come back...and buy...we create new ways to grow |
| 1. "Conspicuous, unbridled spending on the part of the | | | | that are realistic in a shrinking consumer spending |
| American consumer is history!" As a small business | | | | pattern. As we look forward in our business we plan |
| rethinks it's "reason to exist" in todays marketplace, | | | | to reverse our mix of business from 20% design and |
| demand is according to "needs rather than wants". | | | | commercial and 80% "retail walk in trade"...to...80% |
| The "me too" buying patterns are over. The "what's | | | | design and commercial and 20% retail! If at some |
| in it for me" mind set is in. How do you reposition | | | | point the consumer spending starts improving...we will |
| your business for a "customer benefit" niche is going | | | | have our cake...and be eating it too! |
| to be the key to your survival. Here are some key | | | | 4. Marketing must be a effective, relevant and low |
| questions to ask yourself as you rethink "your reason | | | | cost / high yield activity. "Market positioning" type of |
| to exist in this marketplace":a) Is my product or | | | | marketing activities are no longer relevent. The |
| service a "want to have or need to have" for a | | | | internet represents the most powerful small business |
| strapped consumer? If the answer is "want to have" | | | | marketing tool ever created. Learning how to "bridle |
| you need to rethink your product or service to make | | | | its potential" needs to be the number one marketing |
| sure that it offers todays consumer ways to use | | | | focus for every small business. Learning how to |
| your offering to save money, save time, make | | | | create traffic to a web site is in many ways the "flip |
| money or to improve intrinsic value in there lives with | | | | side" of the same coin as bringing traffic into a store |
| "green products" at the top of this list. If it is a "need | | | | or business. The big difference is the enormous |
| to have" you need to squeeze out costs and offer | | | | market that the internet allows you to sell to at |
| better value or squeeze in innovation and make sure | | | | incredibly efficient cost. A well designed web site is |
| that your that your product does the job at lower | | | | the key to all business activity in these times. Figuring |
| cost or improved efficiency. Value is the key thought | | | | out the "search tools" to go after this opportunity is |
| process to make a renewed emphasis in all you do. | | | | the key to survival as well as growth. The internet is |
| Disposable income is scarce (or being saved) and all | | | | the "ultimate weapon" to win the "economic |
| business now competes against fewer purchases and | | | | downturn war"! Win this battle and you will be |
| dollars of spending by the consumer. Small business | | | | "getting a larger share" of a unlimited potential pie! |
| survival is going to require getting a "larger share of a | | | | 5. Money and credit are going to be tight for both |
| smaller spending pie". The old rules and past "tried | | | | you as well as your customer. Keep a tight control or |
| and true" methods of success need to be revisited | | | | preferably reduce or eliminate receivables. Offer |
| and challenged. There are no sacred cows...every | | | | discounts for "anticipating" a order (paying in |
| issue and belief is on the table! | | | | advance) or cash on delivery terms. Get tough on |
| 2. Every business activity and expense needs to be | | | | slow paying customers. In better times it was great |
| re-reviewed to decide if it is "cost effective" and | | | | to be able to help...now this slow paying customer |
| adds value to your business. That includes: | | | | may be the difference between survival and |
| employees, business systems, expenses and even | | | | extinction. No one has enough cash to go around |
| the "high maintenance customers". In these times it | | | | right now...the "squeaky wheel" is going to "get oiled |
| may be better to lose a employee or customer if | | | | first"! |
| there contributions to your business are no longer | | | | In these times the businesses that make it through |
| worth the maintenance that they require to operate. | | | | this cycle will have enormous rewards waiting for |
| Every business practice needs to be rethought as to | | | | them as our "new normal" takes hold! Rethink |
| simpler and more cost effective methods and the | | | | everything...challenge it all...if it doesn't work...fix it or |
| "core group" of employees must be "team players", | | | | eliminate it (whether you are talking about people, |
| high contributors and be integral to your operation. | | | | products, services or customers)! As the "weak" |
| This is the time to "cut the dead weight" and reduce | | | | companies disappear...more market share awaits the |
| "break even profit levels". Hold on to the "core | | | | survivors! New thinking, a "uncompromising challenging |
| people and practices" and get out the "meat cleaver" | | | | attitude" to all things past... and a perseverence level |
| for those people or activities that do not produce a | | | | "ramp up"... are the "key disciplines" to develop! If you |
| return on their time or use of company assets. | | | | start over in your thinking and methods you will |
| 3. Look for new ways and uses for your existing | | | | ultimately come up with the new methods, products, |
| product. Try to broaden your market size through | | | | customers and the team you need to succeed in |
| "new adaptations of your existing product. I own a | | | | "new times! |
| wonderful 2 acre antique and architectural salvage | | | | |