Posts Tagged competition

A lot of companies are going through tough times in today’s global recession and many companies have closed their doors permanently as a result. One of the reasons that they may no longer be in business is because they did not spend enough money!  They cut back on expenses too much. Let me be a little more specific here. They cut back on the wrong expenses.

It is alright to cut back on expenditures like new desks, chairs, memo pads, computers, software, and office supplies, but when it comes to things like marketing to get more customers, or spending money on client projects, you must refuse to cut back. Not having the newest computer more than likely will not put you out of business, but cutting back on the quality used on your product or service could very well create unhappy clients that will take their money and referrals elsewhere, and that truly can be the beginning of the end for your business.

When hard times hit companies, they often pull back the reins on spending and many times to a fault. Advertising and marketing are some of the first places that are cut back. But if you think about it, when you begin to remove your company’s voice from the marketing and advertising world, then you have just increased the ability of your competitors to reach even more customers by your absence  and thus increasing their market share. The best time to advertise and market is in a tough economy because there is less competition and it is simply easier to win.

So, when you are having to make tough budget decisions, elect to order a few less gel pens rather than cut back on your ability to service and reach new customers. This decision alone can help you not only sustain your business in tough economic times, but increase your market share when others are closing their doors.

When it comes to running a small business, there will be no shortage of tasks to perform and things to buy. However, you must prioritize in order to be an effective and successful small business owner. Otherwise, you may find yourself working for someone else.

Here is an ordered list of priorities. We call it “The Small Business Priority Manifesto.”

1. Never let off the gas pedal when it comes to selling and marketing your products and services

2. Retain current customers

3. Increase the number of customers

4. Send estimates, bill clients and conduct collections

5. Maintain available cash or credit for expenditures

6. Meet payroll

7. Hire great people

8. Be sensitive to employees’ needs and ideas

9. Invest in your staff by training them

10. Offer an excellent product or service coupled with fantastic customer service

11. Know how your products and services differ from your competition

12. Set obtainable goals

13. Delegate tasks that someone else can do better

14. Treat trusted suppliers and lenders warmly

15. Review expenditures over $999.99 thoroughly

16. Complete tasks now that must be dealt with before they turn into a nightmare. In other words, do not procrastinate what’s important.