Here are some tough little business rules that have come to mind as I’ve been navigating this uncertain economic moment in my own business and with my clients.
In good economic times, inefficient small businesses can get by OK — remember all the stupid startups in the time of zero-percent interest rates? In bad economic times, inefficient small businesses struggle.
More revenue can often solve many, if not most, small business problems. But if your company is inefficient, it’s like building on top of a weak foundation — more revenue exposes the real problems that need to be solved. Some examples of common foundational problems include but are not limited to: pricing, your offer and/or your positioning, your ability to get leads, to convert leads to sales, and managing your costs to deliver your product or service.
If you are a business owner, at first, your main job is to keep the business alive. Then your job is to help it thrive. Especially with small business, thriving and surviving are different seasons that come and go.
Ignoring marketing is like sitting down at a poker table and telling the dealer, “Hey, I actually don’t believe in or want to play with any Aces or Jacks — it’s just not my thing,” and then first, expecting anyone to agree to these terms. Then expecting that you should still not lose to your competition. Games have rules and business is a simple, but not easy game, dictated by certain rules. The marketing rule is simple: people have to know your company exists in order for them to buy your product or service. Periodt. Do not pass Go. Do not collect $200.
All businesses are the same shape. Once you understand this, you can understand how your business model is vulnerable so you can solve or even overcompensate for that vulnerability.
Sounds corny, but working for yourself forces you to confront yourself. Being a small business owner naturally lends itself to this idea of expansion and growth. Even if you are above the idea of growth or think you don’t subscribe to it, if you’re in business long enough, your costs will rise. Not just your business costs, but your personal costs too — we’ve all seen this over the last few years. And when that happens, you have to grow or expand in some capacity so your can keep the status quo. Growth and expansion are simply difficult and when it falls on your shoulders to make it happen, you’re forced to confront your own stuff, to move through the friction that exposes all the things you were too busy to deal with or never had to face before.