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.

Back in the good old days of marketing (which we will define as preinternet ), companies would broadcast their marketing message to the masses as much as possible. The idea here was to get your message heard or seen by as many people as possible while feeding them the benefits of your product or service. This method worked for a very long time because there were less products and services available to the market, there were less channels in which to get your message out to the public, and the buyer did not have much of a voice either. This model of marketing was basically one way. The message was broadcast from the business through the channel to the consumer. Then came the internet and that has changed everything, when it comes to marketing your company message.

With the internet, the tables have been turned. Now, the consumer has gained the upper hand when it comes to the message being broadcast about a product or service. People are talking to other people about their experiences for the better or worse. They are sharing product deficiencies, offering each other buying tips and tricks, recommending alternative products, and posting reviews. Companies cannot control all the channels of the web. There are just too many sites, blogs, forums, and social sites (and Twitter is one of them) to control and that is the whole point here. Companies have lost control of their brand message and the consumer is now broadcasting that message for better or worse.

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.

Time has moved on and small business has too. Since the dawn of time, man has worked on ways to simply make life better in every way possible. By nature, he is an innovator and a creator. When it comes to business, he is no different. Companies justify their business by the ideas and innovations that they bring to the market place. If they don’t, they will simply cease to exist.

While I was growing up, I was a big fan of stores like K-Mart and Murphy Mart, a local competitor to K-Mart. My parents and family liked taking advantage of those Blue Light Specials that offered various items at discount prices that K-Mart ran. For those not familiar with K-Mart’s Blue Light Specials, let me give you a quick explanation. During your shopping adventure in your local K-Mart, you would hear an overhead announcement that would tell you about a great in-store special that they were about to run for a limited time. The way that you would find the special was to find the flashing Blue Light. Now, the Blue Light was not hard to find because it was atop a large cart and the Blue Light flashed nonstop, and it did create quite a thrill for bargain shoppers. These Blue Light Specials could occur at any given moment. So, you can see why shopping at K-Mart was such an adventure. K-Mart sure did know their market or did they?

Along came Walmart (notice the resemblance in the name), and they absolutely crushed K-Mart and any store like them in a fairly short amount of time. Walmart played the marketing game quite differently than K-Mart. They went after the vendors and manufacturers and negotiated down all the prices that they would pay for items. By doing this, who needed Blue Light Specials when, the entire Walmart store was always on special? In other words, everything at Walmart was cheaper than K-mart and you did not need to wait for a special sale or event to get a great deal. Not only did they offer great deals, but at a Super Walmart, they offered groceries in addition to all the department store items in just one convenient location. That was convenience at a whole new level and the typical busy American absolutely loved it.

Certainly, purchasing groceries and department store items was not a new concept, but Walmart changed how both department stores and grocery stores did business. With the marketing approach that Walmart took, they completely differentiated themselves from all other stores. By doing this, they created a multi-billion dollar publicly traded company. Now, you may not be out to create a multi-billion dollar company, but if you want to make a very good living with your thriving business, you must continue to stay innovative. Dare to do things differently and refuse to do business the same way everybody does in your industry. It will make you money now and will help extend the life of your small business. Remember, K-Mart was innovative sometime ago but where are they today? Continue to do business differently!