5 Tips for Fast Growth in a Slow Economy

Inc. magazine is packed full of good advice for business owners of all sizes.

An example of the great articles I’ve read in it over the last 10 years is Fast Growth In A Slow Economy from their latest (April) issue.

It focuses on 5 strategies which have transformed the business of the owners who adopted them.

Here they are.

1.    Drop your worst customers

Inc.’s emphasis is on customers who don’t pay on time, but the definition can be broadened.

We include customers who want non-standard products or services; always want a deal on price; leave it to the last minute to order; or are abusive to employees. Some bad customers do all of these

I was interviewed recently by Diane Buckner, of the Dragon’s Den, for her post, Customer from Hell? Don’t be afraid to fire them.  She comes to the same conclusion.

Get rid of the customers who drain your lifeblood.

2.    Get help from your customers

Email or on-line surveys are inexpensive ways to get insight into customers’ thinking and challenges.

In the Inc. article, Barrett Distribution, reported a 30% response rate to their survey. The fact that 56 questions could be completed in 12 minutes helped.

Barrett surveyed half of their customers immediately and half 6 months later. That allowed for quick reaction to the feedback. One opportunity they uncovered meant business with one customer quadrupled – providing, by itself, a decent ROI on the survey.

3.    Act locally, not globally

Pursuing companies with a national brand can appear to be very lucrative. However, it’s easy to find yourself competing hard just to get their attention.

The experience of Door Number 3, an ad agency, can be typical. They pursued national accounts and won fewer and fewer of them. When they examined their business, their best accounts were located in their own area.

It’s easier to build relationships with decision makers in smaller, local accounts. Travel costs are less and you can spend more time with them, getting to really understand their business.

Finally, local companies talk amongst themselves and so there’s more word of mouth promotion and referrals from them.

4.    Treat everyone as a potential employee

Virtual organizations offer many advantages (we run one at ProfitPATH). So I can relate to the consulting company in the Inc. article. The owner, Tom Koulopoulos, needed access to specialist skills to complete bids on RFPs his company had a high odds of winning.

For a number of reasons, he couldn’t add the people he needed as full-time employees. So he forged partnerships with them, exchanging a share of the contract value if they won the RFP.

Since Koulopoulos’ company was the vendor he had to find people whose values were similar to his. The key to his success his use of his network, in many cases people he had known for many years.

5.    Get small to get big (think niche)

The owner of Medisys Health Communications’ breakthrough came when she read Blue Ocean Strategy

She realized that they had to stop trying to be all things to all people, competing with everyone else doing the same, find a niche that no one inhabited – and then own it.

So they focused on something they’d been giving away free for years and ended up collaborating with her previous competitors – doing something none of them can do.

If you enjoyed this post you’ll like 4 Things Every Business Owner Must Think About

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Tags: accounts, business, challenges, consulting, customers, decision makers, growth, Jim Stewart, network, niche, partnerships, ProfitPATH, strategies, success, value, virtual organizations

Comments

  1. Great articles Jim. Thanks.

  2. Jim Stewart says:

    Hugh, thank you for taking the time to let me know! Jim

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