Lowering your SP is perhaps one way out of the economic crisis but more important is reinventing yourself - your company, your product, your areas of operations ... as people across the globe are equally looking forward to increase business including China and India.
Some of the ways which can be explored is -
1. Promoting newer product use - re-positioning your product/services
2. Exploring newer geographical areas of marketing and drastically reduce your inventories
3. Cross branding
4. Innovative sales promotions
5.Turning your cost centers into profit centers - e.g. if you have excess production capacities or R&D capacities or test beds ..... you can take up such opportunities from across the world from different companies.
6. Collaborate in countries where your products or services are not
7. Increase your sales network - in your country and abroad.
Affordability in my mind is in availability of funds.
Some long range thinking is in order here, not short term bottom line thinking. Most of the big boys and many, many of the small ones are acutely aware of this factor or will become acutely aware when their funding goes dry.
In past periods I have witnessed this type over the last 40 years, those companies that diversify (innovate and keep a long view of requirements) as well as team and develop a marketing approach that is hard hitting in the areas of "Bang for the Buck" (efficiency, talent utilization and resource management) survive.
Those that send a bill for everything they want paid and show up with an army of workers with a cost plus mentality, burn through and run out of funding, lose competitions on overhead and G&A issues and go out of business.
The little guy with the "Big Guy" talent has an advantage but must cover his back as the larger corporations become squeezed and go for the smaller pieces of the action.
Showing posts with label Small Business Survival. Show all posts
Showing posts with label Small Business Survival. Show all posts
Monday, May 28, 2012
Monday, November 29, 2010
3 Things Small Business Should Do To Stay Healthy In A Down Economy
I think a lot of people try to make this harder than it is. Business is always about increasing revenue and cutting costs.
In a recession, now is a good time to look at those expenditures you've taken for granted. Renegotiate with suppliers for better terms, shop your insurance coverage, pay less for advertising, which leads to the next point.
I said pay less, not cut. In a down economy, you've got to get your name out there more. Look for alternative ways to do so. For the right business, a creative and strategic social media campaign can give incredible results at a fraction of the cost of traditional media. At the very least, a business should be able to renegotiate better terms with their existing marketing partners.
Lastly, form new 'partnerships'. Give other people and businesses a reason to promote you. Who has a vested interest in your company's success? What other companies out there are constantly looking for the same kind of client you are? Forming a strategic alliance with them can decrease your marketing costs while increasing its effectiveness.
Furthermore .... gaining a reputation for exceptional service is one of the primary keys to success in this economy.
Managing your costs, regardless of whether the product you are providing is service or hard goods, is critical.
Determining the optimum price point for your product or service, such that your customers and clients feel that they are getting “real value” for what they are spending.
… and I know that this is a 4th point, but …
Small business owners need to be adaptable to change in customers needs or wants, unless you are fortunate enough to “corner the market” on something unique or that is a necessity ... but that usually has a limited "shelf life". Whether you can influence the change in your customers needs or wants through being innovative in what you are providing, or whether it is the market that you are in which is changing, being proactive or responsive quickly to changes may be critical.. A small business cannot survive, even by providing the very best of service, if the “product” they are providing is no longer “relevant”.
In a recession, now is a good time to look at those expenditures you've taken for granted. Renegotiate with suppliers for better terms, shop your insurance coverage, pay less for advertising, which leads to the next point.
I said pay less, not cut. In a down economy, you've got to get your name out there more. Look for alternative ways to do so. For the right business, a creative and strategic social media campaign can give incredible results at a fraction of the cost of traditional media. At the very least, a business should be able to renegotiate better terms with their existing marketing partners.
Lastly, form new 'partnerships'. Give other people and businesses a reason to promote you. Who has a vested interest in your company's success? What other companies out there are constantly looking for the same kind of client you are? Forming a strategic alliance with them can decrease your marketing costs while increasing its effectiveness.
Furthermore .... gaining a reputation for exceptional service is one of the primary keys to success in this economy.
Managing your costs, regardless of whether the product you are providing is service or hard goods, is critical.
Determining the optimum price point for your product or service, such that your customers and clients feel that they are getting “real value” for what they are spending.
… and I know that this is a 4th point, but …
Small business owners need to be adaptable to change in customers needs or wants, unless you are fortunate enough to “corner the market” on something unique or that is a necessity ... but that usually has a limited "shelf life". Whether you can influence the change in your customers needs or wants through being innovative in what you are providing, or whether it is the market that you are in which is changing, being proactive or responsive quickly to changes may be critical.. A small business cannot survive, even by providing the very best of service, if the “product” they are providing is no longer “relevant”.
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