“It is the best of times; it is the worst of times.” These are immortal words written by Charles Dickens more than 200 years ago. Numerous businesses are struggling with both profits and productivity. While the current recession weighs heavily, many organizations are doing well despite the storm. There are a variety of reasons for their success, and the most pragmatic is that even during economic turbulence, products and services are still required.
So how can organizations rise from the economic quagmire? What can be done to ensure success, and what might be done to prolong a business’s existence?
First, it is imperative to understand that 90 percent of the economic wealth within the United States stems from small business. Entrepreneurs—not complex businesses—are the economic backbone to our society. However, some fail and some succeed. The differentiator? They follow five very practical principles that lead to lasting growth.
1. Remember the reason you are in business. Many years ago, management guru Peter Drucker stated that there is only one reason that organizations are in business: the customer. The customer is the focus for everything; sales, marketing, research and development, even finances. Successful organizations such as Southwest Airlines and FedEx know their most imperative asset: clients. These companies exist to fulfill the accomplishment of everlasting service and support. The best organizations refrain from short-term profitability concerns and focus on what provides the best customer satisfaction.
2. Cultivate relationships. It costs 10 times more to develop a new client than sell an existing one. Current clients are the lifeblood of every successful business. The issue with many organizations is the focus for client acquisition and not retention. Cultivation of client relationships assists in leveraging brand and equally extending marketing. When clients discuss your firm with friends, family and peers, viral marketing helps proliferate the image and extend brand.
Cultivating relationships is not difficult. First obtain testimonials and referrals. Clients love to gloat, and allowing existing clients to share success stories is wonderful for building relationships. Second, ensure instant success by expressing your gratitude for their patronage. Thank-you cards illustrate your fondness for clients, especially when they are handwritten. Refrain from bromide tactics of competitors—electronic media show laziness, but a handwritten note can remain on a desk for months.
Also get to know your clients. This assists in establishing rapport and building relationships. People simply enjoy doing business with those they know and trust.
Customer relationships must be harvested through time. However, once the fruit of the relationship blossoms, clients enjoy your company. When clients are at the emotional precipice, that is the time to request and nurture referrals. There is no better remedy to selling gaps than the receipt of a referral from a satisfied client.
3. Discover your driving force. Strategy is the framework that guides the choices that determine the nature and direction of an organization. These choices relate to the scope of an organization's products, markets, key capabilities, growth, ROI and allocation of resources. These are vital concepts simply because too many organizations focus on the improper goal of short-term profits. There is a pressing need for organizations to become more strategic and less tactical. This rationale provides the organizational basis to force the business into the “what” mode rather than worrying about the “how.”
To encourage useful thought and to build a clear and concise strategy, business owners should be seeking answers to the following questions:
- What is the thrust or focus for future business development?
- What is the scope of products and markets that will—and will not—be considered?
- What is the future emphasis or priority and mix for products and markets that fall within that scope?
- What key capabilities are required to make the strategic vision a reality?
- What does this vision imply for growth and return expectations?
Without a strong vision and direction, the business is doomed even prior to launch.
4. Amplify marketing. History proves that recessions are the best times to increase the market’s awareness and perception of your products and services. Many organizations decrease spending, tightly control budgets and count the number of used pencils—but this only wastes time and decreases access to markets and customers.
Recessionary times call for aggressive measures, and one of the best strategies when others are retreating is to increase marketing. As competitors tightly control advertising to balance profit streams, a recession is a great time to overtake ridiculous budget habits. Fortune, The New York Times and Kraft all built recognized names by advertising and amplifying marketing during turbulent times. Assuming that your organization has worked long and hard at building a name and a brand, now is not the time to forsake it—rather, it is the time to make it last forever.
Nothing happens without a sale. Too many entrepreneurs become complacent after opening a business or begin a business believing the notion, “If you build it, they will come.” Not true. All businesses require a complete focus on selling. Nothing in the business exists unless something is sold. Utilities and salaries do not get paid and little if any revenue becomes available for research and development.
Entrepreneurs need to develop strategies for achieving “selling” excellence. The ideas include self-development, and more importantly, the realization that everyone in the organization must be involved in the process. Selling requires the communication and coordination of the entire organization.
5. One for all and all for one. The final principle of success in every business is the ability of all involved working to fulfill the needs of the organization’s most important asset: the customer. Forty-five percent of every client interaction involves customer service and support. It’s imperative for all companies to follow the rule of the Three P’s: People, Processes and Physical Evidence. Make certain the organization hires the right talent and that employees are focused holistically on the customers. Develop processes that are easy and allow for employees to resolve customer issues. Finally, ensure the physical evidence: collateral materials, parking spaces and even e-mail signatures encapsulate and articulate your brand and your devotion to high-level customer service.
The road to excellence is not difficult. Yet many twists and hurdles can disable your intentions and produce impediments to success. The best organizations understand the need for a clear vision, create strategies to circumnavigate the issues, and remain focused on the customer. If your organization is moving astray, review the five principles, make a 30-day plan, create some action, and watch your margins and success soar while decreasing labor and stress.
Drew Stevens, Ph.D., is president of Stevens Consulting Group in Eureka, Mo. A consultant and sales expert, he is the author of “Split Second Selling and Ultimate Business Bible.” Stevens has trained thousands of business professionals globally and provides instruction to top universities in the St. Louis area, concentrating on entrepreneurship, international business, marketing and strategy. For more information, visit stevensconsultinggroup.com or contact drew@drewstevensconsulting.com.
