It’s a new world out there, and if we want to stay competitive, small businesses can’t afford to do “business as usual.”
For example, I know an entrepreneur who owns a karate studio. Despite the recession, he still requires that students sign-up for at least six months of classes. That worked just fine in the good old days, but it isn’t working now. Enrollments are plummeting, and so are his revenues. But he insists that “I have to pay my rent!” and refuses to change his terms.
But alas, something bigger already has changed: namely, his customers’ spending priorities. Parents aren’t willing to make long-term financial commitments when they’re worried about losing their jobs.
If Mr. Karate wants to stay in business, he’s going to have to acknowledge this reality and update his terms. For example, he could offer month-to-month memberships, or guarantee refunds if parents lose their jobs. Yes, he has to pay his rent. But isn’t it better to collect the rent money one month at a time than to blindly forfeit it altogether?
Now, what about you? Are you operating by obsolete “rules” that are holding you back? Perhaps it’s time to reevaluate your business, to approach it from an entirely fresh perspective. Here’s a few of the questions every entrepreneur should be asking:
- Who is my customer? Has my customer changed in the last two years, and how?
- What are my customers buying, and why? What aren’t they buying like they used to?
- What are all the things I said I’d “never, ever” do or sell? Is it time to reconsider?
If you don’t know what questions you should be asking, email me at ray@propres.com for a free copy of my “Expand Your Vision” worksheet. The world is changing, and if you want to survive, you need to change, too.
Biography Ray Silverstein is a small business expert who specializes in helping entrepreneurs grow. He is president of PRO: President’s Resource Organization , a network of entrepreneurial peer advisory groups in Phoenix and Chicago. He recently took his own advice and expanded his business to include The PRO Alliance —it’s the peer group experience, minus the peer group. He is also the author of “The Best Secrets of Great Small Businesses” and a columnist for Entrepreneur.com. You can reach Ray at 1-800-818-0150 or ray@propres.com.
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