"Testing 1, 2, 3" - If Your Small Business Is Stagnant, Change Tack!

INTRODUCTION:

Whenever I hear that business might be stagnant I naturally ask "why". Many of the responses I get include:

• it's just dead everywhere at the moment;
• people are waiting for the election;
• it's the government's fault, they changed the rules;
• a big player has come to town and they're killing small business;
• the phones just aren't ringing;

I totally get that these can be extremely valid reasons when business slows down. However, I still like to look behind to see if these problems can be fixed or at least the damage limited and I have to say that many times there are things that can be done that just aren't being done so the situation rarely improves.

The reality is that if something's not working then you need to keep trying something different and test the results until you see improvement.

Figure 1: Recognise this? It's a take on the old Test Pattern which was broadcast when stations were not active so you could adjust your set until you got it right by fine tuning. What does your business test pattern like & what fine tuning does it need? Photo courtesy Lara Scolari Gallery Balmain

1: REview Marketing

Too often businesses will stop marketing when times are good and then go like the clappers with marketing when times are bad or worse still do nothing at all because they can't afford it. Marketing should be consistent and often and does not have to always cost a lot of money. Social media and the digital age has opened a new marketing dimension but it should also be only used in conjunction with other mediums such as newspaper, television, radio and mailbox items.

2: REview Salespersons' Activity Levels

If your salespeople are telling you things are dead, make sure you have a system in place that allows you to measure their activity. If you have "order takers" instead of "order makers" then chances are their activity levels in making calls and looking for opportunities will be down. Review how many leads they are contacting each week, how many quotes they are getting out and how many they are converting. Better still sit down with them and have a plan for each of these areas and then make sure that they report to you each week to discuss results. Over time they should develop a pipeline.

These reporting systems can be manual but where possible consider getting something like Salesforce which helps both the team plan their activities but also allow them to instantly produce reports.

Figure 2: Are you going around in circles when things get quiet? Get off the roundabout and remember that increased activity will almost invariably increase revenues. Photo courtesy Balmain Baz and Lara Scolari Gallery Balmain

3: Who Needs Your Products Or Services

Have you really identified your target market? What do your ideal customers look like, where are they and how are you going about making them aware that your business can help them. Be very specific about this and not only will you get better sales results but also you will save a hell of lot on marketing. To get a better return on your marketing dollars it is crucial you know your customer.

4: What Are You Doing Differently To Competition?

If the competition is eating away at your customer base or even if they aren't when things are quiet can you win some of their market share and therefore increase you revenues and profits? Usually you will be able to do this if you stand out and do something different.

What can you offer that the others don't? Is it delivery, guarantees, better customer service or some other thing that customers want? Have you surveyed your target market (including existing customers) to find out what they want? 

CONCLUSION:

Nobody likes it when things go quiet. However, if they do are you doing absolutely everything you can to turn things around or are you just coming up with the same excuses?

It's up to you to make it happen. Ask your small business accountants to help as that is what we are here for.