Growth for the Long Haul

I have always been an optimistic person. I have never felt failure was an option. As entrepreneurs I imagine it might just be in our DNA to think that way.

I’ve been through many good and bad times over the course of running my business these past thirty years. There were amazing years of growth with plenty of business to go around. And there were periods of extreme business draught. We fought through, persevered and learned many lessons. We thought we had it all figured out.

New Hurdles

Then the unthinkable happened, a pandemic. Most of us had to dig deep and work harder than ever to keep our businesses afloat. And we are still here, so we made. Industry sales are up and everyone I speak with is busier than they were before the pandemic. Yet, there are still many hurdles we continue to have to jump. Supply chain and logistics are two issues that aren’t going away anytime soon.

But lately I have begun to hear of new hurdles that may soon be in our paths. Stagflation is being discussed in the media. Recession is being discussed in the media. What affect will either of those have on businesses in the weeks, months to come? And what can we do about it.

If I’ve learned anything over the course of owning my business, it is this. The unexpected will happen, and we have to be prepared for all possible scenarios.

Work “on” Your Business

So, now is the time to get back to working on our businesses more. It is so hard at times to work on our business and not “in” them. Especially when business is thriving. Many of us tend to get out of our good business growth habits during these times. Well, at least I do. We are so busy with the work coming in we forget our outreach efforts. We may even delay adding to our pipeline.

However, now is the time to lay the groundwork for possible bumps that may be coming in the road ahead. Do you have at least 6 months of working capital on hand? If not, is there any “fat” that can be trimmed? Are you being as efficient as you could be? Are there expenses that are not absolutely necessary? If you don’t want to cut them now, develop a list of what could “go” quickly and their affect on your bottom line.

Business for the Long Haul

Determine what is a nice to have versus what is a must have. I’ve done this my entire business life. I attribute much of my business longevity to it. Have you considered if you are in business for the long haul? I know I didn’t exactly plan for thirty years but I didn’t plan to fail either. And I didn’t know how unusual it is for a small business to be in business for thirty years until recently.

78% of small businesses survive their first year but only half of those businesses manage to reach their fifth anniversary. And there aren’t many businesses that manage to stay open for just a decade. Why? 29% fail due to lack of cash flow. You can only live on credit for so long.

42% of businesses shut down because there is no market need for their goods or services.

That is why it is so important to understand your cash-flow and to be constantly working on your business to ensure you are offering your clients what they need and want.

Customer Outreach and Assessment

Many of us were reaching out regularly to our customers during the pandemic. We had the time, right? Are you still reaching out? Now is a good time to make an assessment of your customers. How are they doing? Are you seeing any signs of pull-back on events or spending? Are they delaying decisions? I have a very large customer event coming up and they just cut their budget. They are still doing the event, but instead of several nights of turn-down gifts, they reduced it one. A potential sign of things to come.

Do you know who your top revenue producing customers are? Are you talking to them at least monthly? Start calling at least two of your top customers a day (or whatever makes sense to speak to each of them monthly). Check in. Ask how the business is doing. How can you help them? Do they understand all your offerings or what would do you offer that could help their business grow?

And don’t forget your loyal smaller customers. Those that have been with you for a long time but may not be your top spenders. Make sure you are checking in on them at least quarterly. Even if they don’t have projects, ask about their business, remind them of all your services. Remind them you are here to help.

Evaluate Your Competitors

19% of business fail because their competition out-performed them. So, it’s a good idea to keep a pulse of their offerings, their strengths and weaknesses. Are they working with your customers too? What are they offering that you are not?

Are you seeing them more often at networking events? Are they advertising or sponsoring events? How visible are they compared to your business? How do you compare?

Involve Your Team

Consider doing a SWOT analysis with your team (Strengths, Weaknesses, Opportunity, Threats) for your business and your top competitors. It can be an eye-opening experience.

Seek out their insights into how business is going. No idea is too out there to discuss. Sometimes it may seem outrageous but it may lead to an opportunity.

Spend the day brainstorming with your team. We’ve done this regularly throughout the years and I have always been impressed with what the team suggests. Each time, my eyes are opened to something I hadn’t even considered. So have an open mind.

Explore Growth Opportunities

Where are opportunities for growth in your business? New product offerings, service offerings, new technology? Working remotely is not going away anytime soon. A recent survey conducted by Becker Friedman Institute for Economics at The University of Chicago found most employees surveyed thought they were just as productive working from home as compared to the office.

And, 32% of the respondents said they would quit their jobs if they could not work remotely. As a matter of fact, after COVID-19 80% of employees expect to work at least 3 days per week from home.

This is an opportunity to expand your reach within your customers if you haven’t explored it already. Meet with their HR departments and ask questions about what they are doing to help keep their employees engaged and appreciated. Of course, come prepared with solutions that can help them.

59% of companies that sell services have a much better chance of survival than companies that primarily focus on products. Products are a commodity. Be more than a commodity. Be a partner with your customers. Be their solution provider.

Be a true partner that help them be prepared for the possibilities. Spend the time now looking at scenarios and developing the plans your customers are going to need to survive possible stagflation. Helping them survive will result in you surviving too.