As I mentioned in my last blog (http://kimacworth-recruitloop.com.au/then-and-now-where-have-the-jobs-gone/) – Businesses don’t just disappear over night…..there are ALWAYS signs.
The business owners who only have their heads down within the business and keep doing things the same, may continue to survive for some time, but are unlikely to thrive…….and are at risk of extinction in the long term.
We’ve all seen the demise of numerous specialty produce shops ie fruit & veg, butchers, bakers etc to the Coles and Woolworth’s giants……and yet we still see a decent number surviving……and a handful are actually thriving……even with some being located right beside one of their giant competitors.
Why – what are the deciding factors as to whether a business is going to die, survive or thrive?
Well I don’t think it’s Rocket Science…….it comes down to sales….and for that, you need a good volume of clients buying from you…..and not your competitor.
You can never rest on your laurels assuming that your existing clients will always be loyal to your business……you need to ensure that they have a very good reason to remain loyal.
So how do you do this?
• Ensuring that you understand your customers – where they come from, why they buy from you, what they’re actually buying, what they like & need etc
• Knowing and understanding your competitors – where are they, who buys from them, what do they do differently to you, what are their product lines/ services etc
• Understand how you differ from your competitors – what do you do differently, what is different about your products/ services, what makes you stand out etc
• Monitoring new trends and changes in the market – are there new products/ services available that you should be offering, is there new technology available to make the customer experience better, is there new technology available to reduce overheads to your business
And then ACTIVELY using this information to make CONSTANT business IMPROVEMENTS – whether they be large or small.
Now business improvement doesn’t always take the form of addition and growth. Sometimes a business will actually improve by reducing product lines or services, streamlining activities or even physical relocation. The key is really to ensure that you always take the time and effort to “work on your business” and not just “in it”.
If we go back to the earlier example of specialty produce shops – we all know a local butcher or fruit and veg shop that has been around for ever and is the “go to” place in your area. I can guarantee you that many things have changed since they opened their doors…….products and how they are presented (who even heard of Kale 5 years ago – Master Chef and My Kitchen Rules have certainly changed the playing field), where they source their produce, eftpos, pricing…..and the list goes on……and clearly the changes they constantly made were improvements that allowed them to maintain a competitive edge within their market.
So do you know if your business is going to die, survive or thrive? Make sure you’re following on Facebook (https://www.facebook.com/RecruitLoop-Kim-Acworth-185674054963527) so don’t miss the guest blog from Pathfinder Advisors around “Plan for Growth”.