StartupNation’s 5 Survival Tips for Your Business (as seen in Costco Connection Magazine this month)
It’s no secret that running a business in this economy is a challenge. But with the right smarts, you can get through the storm.
To survive you’ll have to make the most of your time (which you likely have more of as a result of less customer activity) and take into account the impact of your business bolstering efforts today as well as in the long term.
Here are tried and true survival strategies used by successful entrepreneurs:
1. Cozy up with Customers. They’re your lifeblood. But much like you, your customers are under duress. Take them to lunch and commiserate. Provide a giveaway recognizing their past patronage using inventory that’s collecting dust. If you take the time to listen to customers’ needs and show them you genuinely care about their welfare and success, you’ll likely uncover immediate business opportunities as well as engender future loyalty.
2. Experiment. The worst thing to do during tough times is lose your entrepreneurial spirit. Use the extra time on hand to conduct otherwise too time-consuming ideas you’ve always wanted to explore. For example, it could be a strategic alliance with a complementary business or a special buy-one-get-one-free email marketing campaign (we recommend VerticalResponse), just about anything product-, operational- or marketing-related that you’ve simply never had the time to try because you were too busy.
3. Loop in Financiers. With the overall economy in a recession, it’s likely your business is taking a hit, too. Rather than recoiling into the shadows, proactively share exactly what’s happening and what your plan is with your banker or other capital sources. Ensuring that they understand your business and are well attuned to your future plans will help you avoid financial surprises that often occur when parties aren’t well informed.
4. Trim Hours Not Staff. If lower revenue is a reality, consider cutting hours of your employees rather than firing them outright. It not only shows you care about their welfare, but strategically it also helps you retain your most valuable asset – your people – for when the economy inevitably turns around and you need 100%+ hours from them. Firing is difficult, but hiring quality people and training them is a huge burden on a business you should avoid if you can.
5. Stretch Your Spend. To make every dollar go as far as possible, review all of your vendor contracts. Where reasonable ask for breaks on pricing. Everyone’s in this together and though your heroics have made you the leader of your company, and a shining example of an American entrepreneur, don’t let your pride keep you from taking advantage of these potential savings. Every dollar saved will be critical during the down year to come.
May 7th, 2009 at 12:57 pm
I recall reading once that Capitalism was neither the problem nor the answer. Likewise, Communism wasn’t the problem and it certainly wasn’t the answer. Rather, we had neglected to live and conduct our business affairs, quite simply, with Heart. Step one of the above tips seems to speak directly to that. Makes me feel that from the ashes of all this economic hardship a new dawn & a new paradigm of how we interact with clients might arise. And it might be pretty freakin’ Fabulous!
May 12th, 2009 at 10:55 am
I also feel a professional image is important. You need to look successful to attract customers- do not use a PO box or home address, invest in a personalized call answering service, and do not offer to meet at coffee shops. E-mail me for more info on solving all this issues
May 12th, 2009 at 11:24 am
The key to succeeding is:
- Identify a role model.
- know the recipe of your success
- keep things simple.
- Be honest - you cannot do well unless you do good
- follow your instinct.
- watch your pennies.
- keep your emotions out of your decision making.
- have defined goals.
- stick to the business that you understand and be in it for the long term.
- Success is 10% strategy and 99% execution
- Use other peoples’ money
May 12th, 2009 at 11:54 am
Some wise person once said you shouldn’t lose your head when you already lost an arm and a leg.
No. Wait. It was the crazy guy that moon walks for change down at our local Burger King who said that.
But, I think the truth of the statement still holds.
May 13th, 2009 at 3:36 pm
I think this article hit the nail on the head! It’s tips like this you must stick by everyday and you will see your business grow. Sometimes its the simple things that can really turn a failing business into a thriving business. Take care my friends.
May 14th, 2009 at 11:07 am
I believe that during these times your customers are your greatest resource.
The old 80/20 rule is probably more like 90/10 these days so why not take full advantage of it? Create contests and awards for ideas customer-driven ideas that stimulate your business.
In my experience this is where many of my greatest campaigns have come from.
May 16th, 2009 at 9:07 am
I think Number 5 is good no matter what the economic situation is. Stretching your dollar is just good stewardship of the company funds. It may be fun to splurge once in a while, but it should always be balanced with frugality. And, if you need to cut payroll dollars, it is always best to work out a reduced work week before terminating. In smaller companies, employees have a closer affiliation with their employer. They are more likely to help support cost cutting and even create solutions you may not be aware of. The good ones will most likely stick with you in the lean years as well as in the boom years.
June 23rd, 2009 at 8:19 pm
The best way to find growth capital is to apply to a venture summit where you can speed pitch your ideas to several investors face-to-face in a single day. One such example is The Speed Venture Summit, the premier speed-dating-style event for fast-growth businesses and investors in New England. http://www.speedventuresummit.org; and follow the virtual discussion at Twitter #SVSNE
August 14th, 2011 at 5:13 pm
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