Is The Economy An Excuse for Your Small Business?

It seems everywhere I turn news about the economy is sounding gloomier than ever and as business women, we can't help but worry and wonder how this will impact our business. While many consumers are tightening up their wallets and spending less they are also still purchasing much needed services and products.There are many small businesses that have been impacted by the economy and some have even gone out of business. However, we must not allow ourselves to use the economy as an excuse by assuming customers will not want our products or services. Instead, we must develop a strategic plan to handle the challenge and keep the faith that our businesses can and will survive. Below are some survival techniques that can help you:Evaluate Your BusinessKnowing how your business is performing is the first step in determining how you can improve. Take a look at your balance sheets and cash flow (you have been practicing good bookkeeping right?) to determine what products or services have not been selling; look at the number of repeat customers you have, determine what customers have stopped using your products/services, number of customers you need on a monthly basis and what discount percentage you could give your customers. (Note: 10% doesn't mean very much these days. It needs to be more)Survey Your Current CustomersWhen is the last time you've developed a survey to determine what your customers are thinking about your products/services? Going straight to the source that can make or break your business is vital. Ask your customers what products/services they would like to see or how you could improve for them.Research, Research, Research!Researching your business to determine new trends and techniques your competitors are using is a reliable way monitor how your industry is doing overall. By researching you can learn new marketing methods that might work for your business, eliminate products/services that consumers are not wanting and add products/services that they are seeking. You will also be able to determine if your prices are competitive, but attractive to your target customer.Offer Special Pricing or DiscountsPerhaps you've seen "economy specials" at hair salons, retail stores and elsewhere and it's working for many of small businesses! While you don't want to sell yourself short, consider lowering your service fees or providing special discounts on your products for a period of time. Start by rewarding loyal customers who continue to order your products or use your services. This lets them know that you are sensitive to the times and care about them.Stay "Sticky" to Your Customers!How are you staying in touch with your customers? Building a solid business relationship with your customers is important, because it helps to develop familiarity in their minds with you and your products/services. Ways to do this include: monthly postcards, e-newsletters, printed bulletins, birthday cards with special coupons, coupon mailers and more. The important thing is to develop a consistent strategy to stay in front of your customers and keep them informed.Many of the survival techniques listed are really common business practices that should be implemented consistently. Oftentimes as businesswomen, we forget to stay consistent and allow things to fall by the wayside. So, let this article be a motivator for you to get in gear and get started with developing a strategy that will not only survive the economy, but grow your business with a steady flow of loyal customers!About the Writer:Trina Newby is founder of Women About Biz an online small business education and connection network just for business women. For more than 20 years, she has helped thousands of women start and grow their small business.
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