Make Lemonade

It matters now more than ever for small business owners to explore the options of using local talent to streamline business costs. Far too often cutting payroll seems an easy and immediate fix to rising costs and declining sales. Issues of controlling labor cost should be left in the hands of the management - at least for now. Given the cost of hiring new employees, outfitting them with uniforms if necessary, and the time needed to train them properly, this is not as cost efficient as some may believe. Not to worry, there are still other options that actually are more impactful to your business annually. If you use Bulldog Rule #8 – “Re-examine your business often”, then you’ll find that you are easily able to pinpoint your areas of opportunity. Here are a few ways you can go local.

Marketing

Look for opportunities to spread brand awareness at minimal costs. One of the more common and successful tactics is a business co-op. Form a working partnership with other local businesses and use incentives to increase customer counts for you and your partnered businesses. Get creative and remember all businesses involved must handle these shared customers with the greatest of care.

Another source of low cost marketing is supporting a charity. Keep in mind that just as the community is there to support its businesses, those same businesses are there to support the community it operates in. If customers believe they can contribute to the community through your business you have gained their loyalty.

Products and Services

Now is a good time to consider how your products are presented to your customer and how to better meet their needs.  The name of the game in this arena is Convenience, Cost, and Consistency. It should be easier to get the same quality of products and services for a better cost. Keep an eye open, it might just be easier to purchase the same products from a struggling retailer than a struggling distributor.

Distribution and Shipping

That big time distributor might not be as convenient and cost efficient as he use to be. Don’t hesitate to change distributors or explore your options locally to meet your customer’s needs. In the event that the cost to ship goods from a central location becomes unfavorable, search for local distributors that can provide the same quality product and form a working relationship.  Remember the objective is to make sure that your customer receives their product faster for a good price.

Customer Interaction

Even though I like to speak to a person when purchasing products or services, there are many who would rather not. Options include online purchasing, or using some form of automated service to interact with your customers on their schedule. The time and resources saved on errors, miscommunication, and labor more than make up for this type of premium upgrade to your business.
Overall the market is still very full of opportunity; you just have to: Assess the Situation, Plan the change, and Act on it to fight your way through the storm. Or as the timeless saying goes, when the world gives you lemons, make lemonade!

This entry was posted on 29. April 2009 at 08:42 and is filed under Creating the Culture, Saving Money, Making Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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