What’s the common mistake most businesses make in a recession? I believe business owners, especially new business owners, make nine fundamental mistakes, especially in a market downturn.
These nine common mistakes have been identified by interviewing hundreds of business owners: the good, the bad, and the ugly. The good ones do things right. The bad ones have never been taught to be business owners. It is something they learn as they go. These owners probably never planned to be a business owner but through circumstances, they find they are running their own business. Many never make the adjustment. The bad business owners just don’t care as long as they made money. They will leave a trail of bodies behind them. They typically are people you want to do business for the long term.
I took the best behaviors from the business owner I interviewed over the years and distilled them into nine specific behaviors. I compared them against my clients’ behaviors and the behaviors of other successful business people I met. I found them to be valid. I then introduced these behaviors in a coaching program that drives these specific behaviors.
When the economy gets bad, business owners lose all discipline and focus they had when they created a successful business. Instead of being more discipline they tend to go after everything. This is a problem because they dilute their already limited resources by trying to do too many things or being all things to all people.
The key to success lies in how well you create an “attitude of success.” My studies have shown that there are nine behaviors that all successful people exhibit, especially in an economic downturn. When these behaviors are implemented in the highest levels of an organization and are combined with the correct attitude, they cascade down through the organization. Successful business owners understand that the organization they manage takes on the attitude of the top person in the organization, and they strive to ensure that their behaviors reflect this. To be successful you must implement these nine behaviors.
1. Become Selfishness – Get Clear on What is Important When I say successful companies are selfish, I am not referring to the childish behavior of everything is “mine, mine, mine.” I am referring to a mature selfishness that allows them to make decisions based on the outcomes they want to experience.
2. Stay Focused on What is Important. It is very hard for a company to be focused if you don’t know where you are going. The dictionary defines focus as “close or narrow attention; concentration.” Without a clear perspective, you cannot focus on the desired outcome. It is too easy to become distracted, unorganized, and inconsistent. When you understand what it is you are to be selfish about, you generate a clear focus—a sense of purpose. There are two questions you must always ask yourself. “Is what I am doing taking me closer to my goal (selfishness)? If not, why am I doing it?”
3. Be Disciplined by Creating Corporate Habits that Work Discipline is controlled behavior resulting from training and self-control. Your mind is made up. You have decided to achieve your marketing goals.
4. Persistence – Stay the Course. Webster’s Dictionary defines persistence as the continuance of an effect after the cause is removed. Once you take the time to create a marketing strategy and implement a marketing plan, your goals will be clear. And when you are focused, disciplined, and selfish, your persistence allows you to see any unplanned obstacles not as problems, but as opportunities. After all, if it was easy, anyone could accomplish what you are accomplishing. But not everyone is on the field of battle with you. They see obstacles and stop. You see obstacles and opportunities. You keep your eyes clearly fixed on your objectives; you try different things to overcome these obstacles. You know where you are going; you know you can’t be stopped. You know that your persistence is what drives you forward. You will find a way around any obstacle, and keep right on going.
5. Ownership – It You Don’t Own It, You Can Not Change it. Ownership is the state of being an owner. It is taking the legal right to the possession of a thing. Not only tangible things, but also your dreams, your goals, your business, and your life; if you do not take ownership for achieving your dreams, who will? You cannot blame the market or the economy for your problems. You must take ownership or you cannot take action to address the problem. Taking ownership is about change—making the change necessary to move forward, changing behaviors that are not working, and dealing with the world as it is and not as you want it to be.
6. Measure Everything – Orientation toward Results. Results mean ending in a particular way. Once you define your goals—the outcomes you want to achieve—and how you want things to end, you can take ownership to create your desired outcomes. You can create the results. It is now a matter of implementing the behaviors that will drive those results. When you don’t get the results you want, you fall back on persistence, ownership, focus, and discipline, and know that you have the skills, the drive, the desire, the knowledge, and the road map that will take you where you want to go. Results are simply a way of measuring your success. You either get the job done, or you don’t. If you don’t, because of your ownership, you go back and try something different. No excuses. No remorse. Only results. You understand that there is no trying; only doing.
7. Success is Dependent on Your People Effectiveness All successful people understand that their success comes with, and through, other people. Successful people recognize these individuals and appreciate them for their contribution to the results. Understand who your best customers are and treat them like gods. Determine who will help you (employees, referral partners, business associates, etc), why they will help you and how you can help them.
8. Only the Right Ideas- Not All Idea are Created Equal Most people have an abundance of ideas and this is the problem. Once they get selfish by focusing on one specific goal, they can generate ideas that allow them to implement their intelligent self-interest. This will move them to new level, both personally and professionally. If they are not clear, the abundance of ideas will just get further off track. Getting selfish is very important here. It is also important to understand that ideas typically come from others.
9. Defining Success as Taking Action. Success, in the original sense of the word, simply means to take action. When in doubt, do something – anything. Successful people understand that they can always correct something that is not working. They also understand they cannot correct an action that is not taken.
Do not be confused by the outcome of success: new car, new house, more time off, money etc. These are outcomes of success. They are not success. Success, simply defined, is taking action. When you take action you can achieve the outcomes of success.
Many time people have a great idea. They believe their idea will lead them to success but they have no idea how to move forward. Or, they have so many ideas that they cannot make up their mind. Successful people know they need people to help them implement their ideas.
What are 10 methods you would use to survive and prosper in a recession?
Here are 11 actions you can take during tough economic times….
1. Create a Strategy. The first action you must take is to create a marketing plan. You must get clear on who is your best customers, where to find them, what problems you solve and why they should buy from you. This does not require a long document but clarity in thinking. All eleven actions are documented in 49 Marketing Secrets (THAT WORK) to Grow Sales. (This book is available on Amazon.com).
2. Be Consistent. You must be consistent in your message and brand throughout all your marketing activities. Otherwise potential customer can get very confused. Most people do not lose an opportunity to the competition; they lose the opportunity to complacency of the prospect. When the prospect gets confused they do nothing. Be consistent in your message.
3. Use Press Releases. Let the world know what you are up to. Use press releases to target specific locations. Write the press release with a unique angle that makes it easy for reporters and other readers to read your message. There is the possibility for a huge return with a minimal investment.
4. Create Controversy. Take your message, your story and build some controversy so it is interesting to others. Take something that everyone is talking about–newspapers, magazines, industry blogs, etc– and incorporate that into your message.
5. Write Articles. Writing articles is one of the easiest and least expensive ways to get your name out and increase visibility. There are hundreds of sites looking for articles. The key is to write about what your prospects what to hear about, provide value and have a clear call to action.
6. Networking for Referrals. The quickest and fastest way to get new business is to ask for it; especially from your existing customers. They know your products and services so pick up the phone, take them out to lunch and ask them if they know anyone who they would introduce you to who could use your products or services.
7. Create Your Business Mastery Advisory Board. Create your own advisory board. Many business owners think they can go it alone. You can’t and the sooner you realize this the faster you can the result you want. It is all about people. If you do not test your message with your peers and see what works, you are wasting time, energy and money.
8. Generation Leads. Use Tele-seminars and Webinars as a marketing tool so people can find out what you are about. These can be free or paid. The key is to provide value so people listening want to engage you. The beauty of this approach is people who are interested in what you are promoting naturally opt-in to listen to your story.
9. Use Electronic Newsletters. Electronic newsletters are a great way to stay in touch with your audience. They opt-in so you know they are interested. Having someone buy your products and services is as much need as it is timing. Your name (product) needs to be at the top of their mind when they need something. A newsletter can do that for you.
10. Speaking Before Groups. Public speaking is one of the best approaches to generating new business. You need to be professional and provide value but where are you going to get an opportunity to have 100 people pay to listen to you talk about what is important to you and how it can help them. If you are afraid of speaking, get trained. There are many different organizations to help you.
11. Create an Event. Create an event and make it a party. People are social animals who love to be involved and find deals. You can do a grand opening, a grand reopening, an anniversary sale, holiday sales or any one of 100 reasons to have a party and invite people into your business.
Ronald Finklestein, President of AKRIS, INC, is a small business success expert, business coach, consultant, speaker, author, and trainer, and has published three books, 49 Marketing Secrets (THAT WORK) to Grow Sales (www.49marketingsecrets.com), Celebrating Success! Fourteen Ways to a Successful Company (http://www.yourbusinesscoach.net/14ways.html) and The Platinum Rule to Small Business Mastery (http://www.rpfgroupinc.com/the-platinum-rule). Ron’s client have increase sales 35% year over year, experienced 150% return on investment, opened new markets and created new products that have transformed companies. Finklestein is available for coaching and consulting, speaking engagements, workshops, and seminars. You can contact him at ron@ronfinklestein.com or (330) 990-0788. Sign up for his newsletter at http://www.yourbusinesscoach.com/promotions.html. All the books mentioned above are available on www.amazon.com.
