Posted: March 5, 2010

During the past year, the economic challenges for most business owners have ramped up while profits/margins have been in a "freefall." The "R" word strikes fear in the hearts of most independent business owners/managers. Remember, while the country may be in a recovering recession, that is not the trend for all businesses. Through my experience as a consultant to businesses around the country, I have had the opportunity to study the approach of many businesses that are successful in these uncertain times. These companies understand the value of seeing these "challenges" as opportunities.

"R" you thinking creatively to stay competitive in this economic downturn? Companies that "hit the reset button" to enable them to become mentally positioned to compete in this economic climate must first look at every aspect of their business with these "R" words in mind: Rethink. Renew. Reclaim. Reinvest. Research. Resolve. Re-energize. Reward.

Recently, I have worked with groups of business owners who selected just three of these powerful "R" words and made a commitment to expand their meaning within their organization. Each time we do this strategic exercise, I am reminded of the quote by Will Rogers - "The door of opportunity won't open unless you do some pushing." It is definitely time to push. What are you doing to renew your commitments, to resolve clients' concerns, to re-energize your team, etc?

Even as we face these strong economic headwinds, many new small businesses will open and become successful and many existing businesses will become even stronger. To this end, I have recapped this short and simple 10-step "Winning Strategies for Uncertain Times" that include essential components to prioritize for businesses that will not just survive, but thrive. High-performing, innovative businesses are using a winning combination of these strategies and tactics.

1. Take a hard look at your core business. How do customers define your unique selling position? Why would they choose you? It is imperative that owners and managers challenge all of their assumptions about their business and ask the "hard questions." Be objective.

2. Make your team an integral part of the solution. Welcome fresh ideas. Embrace change. Use the collective brain power to focus on specific aspects of the business that need rethinking. Have an "innovation session" monthly to brainstorm new and fresh approaches to customer retention.

3. Connect with your customers. Make extraordinary service your "secret weapon." Make it your top priority. Seek to create a loyal fan base. Establish goals for your "EQ" (emotional quotient) with your clients. Focus on excellence in internal and external customer satisfaction.

4. Create an engaging and enticing environment in your business - stress "solution selling." Remember that consumers have so many choices, yet so little time. They respond well to businesses that consistently create a sense of welcome, with an engaging staff that provides solutions to their needs.

5. Be aware of your top competitors and be informed about their competitive advantages. This is not to copy them, but to be mindful of their business standards, policies, etc. Seek to create a "top of mind presence" for your products and services. Remember the old adages - "differentiate or die" or "differentiate to dominate."

6. Make your business accessible in the physical and in the virtual worlds. Today's consumers are information-hungry and are more connected each day. Make it easy to do business with you. Re-evaluate your business hours. Seek to accommodate them with a 24/7-hour Web presence.

7. Solicit feedback from your customers. The "voice of the customer" must be integrated into your business. Start listening by using a combination of low-budget research techniques such as focus groups, mystery shopping, advisory boards, electronic surveys, etc., to gain rich customer insight. High-performing businesses make this a "top priority."

8. Approach all your suppliers with a "partners' mentality." Think of this as a reciprocal relationship - one where both of you succeed when your business is profitable. Do not be afraid to ask for concessions, incentives, mark-down money, etc.

9. Set sales goals for each month. Work the numbers. Look closely at profitability in every category. Stay in touch with your cash flow and project needs. Maximize inventory turn. Remember to turn it, not churn it. Take a hard look at your debt service and consider options to possibly restructure your debt. Be vigilant about cost cutting - in the right places! Aspire for operational excellence. Do not cut staff and sacrifice service. Look at salaries as a possible underperforming asset and challenge associates in new ways to be more accountable for increasing sales.

10. Presence of management is an essential success ingredient in today's competitive marketplace. Owners/managers need to be highly visible and ensure that everyone in the organization subscribes to the "no customer left behind" mentality." Role model your expectations for all to see. Remember, management sets the standard.

I urge each business owner or manager to select and re-enforce a few of these strategies. Be thoughtful and thorough in your approach.

Remember, the mantra for any successful business is simply "To Make Business Happen - Not Wait for It to Happen."

Margie Johnson, president of Shop Talk, a business consulting and research firm, can be reached at 491-1411 or by e-mail at shoptalk@shoptalk.org, or by visiting www.shoptalk.org.