Shifting Your Business Strategy – 3 August 24, 2009Posted by David Dirks in business strategy, Solving Business Problems.
Tags: business growth, business strategy, growing revenues, market strategy, sales growth, shifting business strategy
Waiting for things to ‘get better’ is not a strategy. Or least, it’s not a winning strategy. Waiting for things to ‘get back to normal’ is just an opportunity for someone else to eat your lunch. I hear too often from business owners who echo those sentiments. Whatever the outcome of any economic cycle, the high performing Big Dogz who grow through them are the ones who win longevity.
It’s quite natural for a business owner to want to hunker down, close the hatches, and wait the economic storm out. Some businesses will survive and others will not. Let me ask you: who wants to be just a ‘survivor’ when you can do better?
How many do you know that own a business that are using the ‘wait and see’ approach as an excuse to hide in the bunker until the shelling stops? Probably more than you and I know of.
The good news is that you can take advantage of this or any other times of great uncertainty by looking for opportunities that you can leverage to grow your business. I’m just scratching the surface here but some things to consider:
- Work harder to find ways to free up cash that can be deployed to expand your business. The common response in tougher times is to free up cash and then hoard it until the good times come again. Obviously not entirely out of order to keep some cash in reserve but many businesses just hoard it. By the time anyone realizes the good times are back again, it’s too late for you to find opportunities to invest some of that hoard.
What to invest in during tough business climates?
- Upgrade to more efficient and powerful equipment. The right investments could reduce your costs on a product or service line is one possibility if it makes your business provide services faster, better, and cheaper.
- You could take advantage of a weak competitor in a nearby geography that you currently don’t serve and hire additional sales firepower to build business there.
- Buying a competitor when it makes sense and the price is right.
- Develop & expand your product and services lines. We’re often quick to prune the losers (or at least we should be) and much too slow to replace with products/services that could keep revenues moving forward.
- Upgrading customer services. Too often this is left in place or cut back. High performing companies make sure that any customer touchpoints are responsive and best-in-class.
- Establish a strategic partnership(s) with other businesses that are complimentary and have high potential to drive revenue growth. Hunkering down can blind us to opportunities that are staring us right in the face if you only took the time to look.
None of this is easy to do. That said, what it does take to do this well is 1) constant and deep scanning of our business environment to find and connect with opportunities and 2) the internal ability to move on those opportunities that won’t be there if you wait for the ‘good times’ to come back again.