Headline

Part of owning a business means that you will have to be prepared for crises. Sometime within the life of a business, there is bound to be at least one crisis for which you will have to be prepared. Whether it be an elemental crisis, like an earthquake or a fire that does serious damage to your business, or it be something internal, something is bound to happen.

Can you think of a crisis or two that could affect your business? Maybe you have a key employee who might quit or are injured. Maybe your business is located in a small town and could be seriously impacted if the town's economy were to go down. It could be that you could have a key supplier close. There are many, many different crises that could be detrimental to business.

There are two different ways you can handle a crisis when it comes along. You can fold under the pressure of the problem, and your business could be seriously injured or destroyed completely. Alternatively, you can march through the crises and come out the other side stronger and more successful.

Is it possible to survive such a problem and be better for it? Yes, it is very possible. All you have to do is take some very simple steps.

Step one: plan ahead. You will need to have backup plans before a crisis ever even happens. Of course, you cannot know exactly what may happen in your business' future, but you can plan for problems in general. Go ahead and put policies and procedures into place now so that you will have something to fall back on in the future.

Step two: educate your employees. You can handle issues with losing key employees by cross training them so that you always have other people that can do any job. In addition, make sure that your employees understand the company's policies on any crisis that may come up.

Step three: If you expect it, you can deal with it. You do not want to run your business with a constant sense of dread, but at the same time, you do not want to be surprised and left in shock if something were to happen. Always make sure to run your business with a positive mindset, but at the same time, expect that bad things may happen.

Your business can come through a crisis and be better in the end. It just takes a little work on your part.

Comment (0)

Do you ever experience problems in your business?  They're like pests, or parasites. They come in unsolicited and unwelcome, and they never fail to leave a mess before they leave.  But before you dismiss them, think about why the problems are happening in the first place. They are there for a reason. Problems arise because of discrepancies. They are signs that something is wrong with the business, and you can't afford to ignore them!

Consider problems as hints to you that you need a revolution or a transformation in the way you run your business. Start with things that you can change. Think: what is it that you are doing wrong or what is it that you are NOT doing, that is causing these problems?  Block off an hour with no distractions, take pen to paper, and take these 3 simple steps to look at ways that you can transform your business.

• Do a business review, before you run into trouble.  You should have a set time of the day or week to objectively evaluate your productivity.  This allows you to strengthen it. Every once in a while, take a snapshot of your business. This allows you to review all the good work you’ve done thus far and assess all the potentially damaging weaknesses. How do you look in this snapshot? Where are you in your business today?  Have you broken even yet? If one of your goals is to make your first million, have you?  How far along are you?

• Now think about your business’s mission.  Are you keeping your business aligned with your mission? If your business’s mission explicitly states that you put your customers first, have you done so? If your mission promises your clients a high standard of quality, have you, to the best of your abilities, ensured that all your clients receive only exceptional service from you?  If your business is founded on observing integrity and trust, are there times when you knowingly shortchanged your customers?  If your honest answers are less-than-desired, take the time to review your business. What are the incidents that triggered your answers? Why did you let that slide? Did you do anything to make up for it? Now in retrospect, how would you deal with the situation so that you can still uphold your business’s mission?

• Now look to your relationship with your clients. Do you have a mutually beneficial relationship with them? Are you on a first name basis with your repeat customers? Do you treat all repeat customers like first timers, not because you give them the same kind of royal fanfare but because they all look the same to you? Do you send festive cards or thank you notes, even coupons to your loyal customers, courtesy of your company?  It’s time to transform your client relationships and make them work for you.  It’s easier and cheaper to maintain an existing client than to gain a new one.  Don't assume you know why they buy from you - leave it to your customers to tell you what it is they like about your products.  Once you know the answer, you can capitalize on this.
 
It’s important for you, as an entrepreneur, to know your strengths and weaknesses so that you can understand the solution that you can bring to the table for your customers. This will help sustain your business and keep your customers coming back to you. When you can articulate this superior solution, and be willing to transform your business when you need to, you can keep your customers happy and win over new ones!

Comment (0)

Many entrepreneurs tend to take deal with their problems at face value. On one hand, they think they’re too busy to dissect the problem and on the other, they know they cannot afford to be bogged down by it. Hence, they resolve the problem at hand and move on. The problems experienced by most business owners are nothing new – but it's how you resolve the problem that makes the difference.  Look at a problem, whether trivial or damaging, and ask these questions:

1. How did it come to this?  Maybe your deliveries have been late, or the quality of your product isn't what it used to be, or you're losing orders because they're getting lost in cyberland when your server keeps crashing.  Whatever the source, find it.
 
2. How did the problem or challenge take shape?  Nothing happens overnight, so when did it start?  Drill down.  Did you start using a new transportation company?  Are you using a new web host or server?  Did you lose a key employee?

3. What were the first signs that trouble was brewing?  Develop some type of daily, or at least weekly, reporting system so that you have a snapshot of the health of your business.  This allows you to have a real time picture, or pretty close to it, of when the problem started.

4. Why didn’t you pay attention to these tell-tale signs?  Your clients may be forgiving the first time, but if it happens again they'll take their business elsewhere.  But some clients may just go away without ever telling you why they left.  Let your ability to put your customers first define you.

5. Who is responsible for the slip up?  Human error is one thing, but negligence is an entirely different animal.  Maybe some retraining is in order, or if the problem continues you may need to make a more permanent change.  Or you may need to switch vendors if they're making you look bad.

6. Did he or she inform you of the problem in a timely fashion?  Mistakes happen.  But you have a chance at salvaging the situation if you know about it before it hits the fan.  You could give an employee or vendor another chance to prove himself. If he’s a respected member of your team, rehiring him could go a long way toward building a strong sense of loyalty and fairness within your organization.

Considering all these questions will lead you to answer the ultimate question: what is the real problem?  With every problem that you run into, get to the root of it. There’s no smoke without fire.  Big problems don’t just surface; they are often little problems that snowballed into one. Once you can eradicate the root of your problem, you no longer have to worry about seeing them again!

Comment (0)

Here are some cold, hard facts about small businesses in the United States today:  two-thirds of new businesses survive at least two years, while half of existing businesses survive up to four years.  Encouraging, isn't it?  I'm not trying to scare you, but I do want you to wake up and smell the coffee.  So what can you do about it?  Learn from others.  And one of the biggest mistakes that small business owners make is that they hyper-focus on the details, and forget about what the customer really wants!

Entrepreneurs are often driven by daily tasks.  Think back to the time you last had a bad experience at a restaurant.  You ordered your steak, medium rare – it arrived well done.  You threw a fit and called in the chef to explain that you preferred your steak red and oozing with blood; always have and always will. He headed back to his kitchen where he whipped up (gasp) yet another well-done steak. Your plea was lost somewhere in the smoke.  In short, the chef was not focused on what you really wanted!

Our deepest sympathy- to you and that cow that lost two ribs for nothing.

One of the biggest missteps you can make is to overly engage yourself in the daily operations of your business. Perfunctory routines need to be supervised, no doubt, but try to see the big picture here. All the money you have spent is all driven by the aim to satisfy your customers.  As a business owner, you need to understand the needs and desires of your customers. If you only focus on putting out dish after dish and not on the whole experience, your customers will leave your restaurant. Chances are they will not be making a second visit.  And they will tell all their friends. 

As an entrepreneur, you must constantly work at improving your products or services. Your products can boast the most unique features, but high demand is only ephemeral. It won’t be long before replications of your product are sold on the market, and at a cheaper price. They say that imitation is the best form of flattery, but I’m sure you will be looking to spill some blood if it happens to you.

There are also a plethora of service-oriented companies out there. Customers choose to go with the one they feel most comfortable with: companies that treat them like royalty. If you are competing in an industry that is very service specific, you might want to up your game by providing an enhanced, all around experience for your customers.  (Like, for example, the hair salon that gives you a shoulder massage with every cut, serves sparkling water and scones while you're under the dryer, and knows your name when you come in for your next appointment.)

Lastly, running an operation isn’t a walk in the park. Even to the best of your efforts, you might sometimes find yourself bogged down by internal troubles. Perhaps your very competent accountant might be looking to seek greener pastures, or your triple threat of an assistant manager needs some time off work to discover herself. Suddenly, you find yourself shorthanded.  Operational problems affect your business in a very direct manner. Be sure to tackle these pressing issues immediately.

Comment (0)

Vendors, just like businesses, can feel the effects of a recession. Unfortunately, vendors try to offset slowing sales by raising prices. This can create a vicious circle since sellers will quickly search for other vendors or stop buying as much when the prices are raised. Eventually, the relationship between seller and vendor can quickly break down.

When you have a solid set of vendors who provide you with the products you most need, then you do not want to lose the relationship you have with them. You will need to take steps to nurture the professional relationship when a recession hits.

The first thing you will need to do is recognize that your vendor is having a hard time too. Often, small business owners become angry with their vendors, feeling that the companies raised prices out of greed during the worst time for the small business. Remember that your vendors are trying to stay afloat too. Keeping in mind that it is not about greed, it is about getting by. This will help you to be more patient with your vendors.

Next, draw upon the relationship you have. Many vendors will work with their customers when those customers have been in good standing with them. Do not be afraid to talk with your representative about alternative options or ways to obtain discounts. Give the vendor a chance, and you may be surprised with the results.

If all else fails, shop around for a new vendor. Save this as a last resort, though since all the vendors will be dealing with the effects of the recession. Try not to switch vendors, because building a company and vendor relationship is vital to the long-term health of the business. If you have to, look for vendors who have a good reputation.

Your professional relationship with a vendor can survive the recession. The key is to understand that the vendor is doing the best they can. In addition, remember that you can work with your vendor, and it does not hurt to inquire about the possibilities.

Comment (0)