If you've been watching the news lately, you'll know that parts of the economy are starting to struggle and the mood is changing. The latest ANZ business survey headline reads "Business confidence remains on the ropes, hitting a new six-year low in August". The dairy industry is struggling and construction in some sectors is starting to be affected by the oversupply of houses.

A number of businesses I talk to are concerned about the current climate and if sales will be affected over the next 6-12 months. It's important to be aware of the climate and adapt accordingly, but also remember that all these things are in cycles, so this is nothing new (some suggest every seven years, but this will vary depending on the market).

As these cycles change, what can you do to make sure any impact is minimal to sales and profits for your business?

Smart businesses who recognise the downward trends will be looking for strategies to minimise effects on their business.

Here are six strategies that will help to ensure your profits stay intact even when your market is in a downturn:

1) Be in more than one market 

Every market and customer group has highs and lows every few years, so it's important to make sure that you have customers in more than one market. Often when one market is at the bottom of a cycle, another is growing. By selling to more than one market you will still have growth in at least one area of your business.

Look at your existing customers in segments or groups. Some groups will be growing - spending more each sale or more new customers coming to your business. Other customer groups will be shrinking - they are spending less, buying less frequently or not at all. Identify the customer groups that are growing and target them individually in your marketing.

Note: there may be some customer groups that might be growing - but are not attracted to your company - and you don't recognise them. Check out what areas might be growing in the market or your competition is promoting to that you are not.

In every business there are a number of different customers and markets. Let's look at two examples of companies with different markets in a downturn:

IT Company: This IT company might have four main customer groups: residential, commercial, new installs, and maintenance.
Opportunities: Commercial might be slow but there could be plenty of home based businesses starting up and commercial requiring help scaling down; there could be opportunities to decrease costs for these businesses with current telephone technology and cloud based solutions for both existing and new customers.

Water Pump Installation and Servicing: This company may have three main customer groups: farmers, new subdivisions and servicing.
Opportunities: Dairy farming might be quiet; but beef and sheep farmers could still be good. While new subdivisions, and pump servicing will still have growth.

Every small business should have a number of different customer groups, to avoid being too exposed when these cycles come and go.


2) Look after existing customers

Make sure you keep looking after your existing customers and go the extra mile. Put more focus into building good relationships. It’s much easier to keep old customers happy, than find new ones. This is also a good long term strategy, for when the cycle comes back around.


3) Look for more of the type of customers you already deal with

This seems obvious, but are you doing it?

If a trades business currently gets work from two large building companies, they should seek out others. Relying on a small number of customers is dangerous anyway because if one is lost, the business is very exposed.


4) Diversify

Think about what else you can offer your existing customers.You might be able to re-package or sell them something different, introduce new lines. 

For example, a shoe shop in a recession, could expand their range to include kids school shoes, workboots, and add on's like laces, protective sprays, polishes, etc.


5) Keep things tight

It's important to make sure that any losses you incur in a downturn are kept to a minimum. So work on:

• Reducing unnecessary expenses 
• Becoming more efficient with your production or service
• Non-performing staff need to come up to speed or leave/be reassigned (this may seem harsh, but staff that are not producing results will reduce the effectiveness of the whole team)
• If price is an issue, offer more economic options for customers (without the bells and whistles)
• Protect your margins (be careful as selling two times as much for half the margin will not help)

6) Keep investing in the right areas

There are some areas of your business that you should spend more on like:

• Sales related activities (keep marketing to your customers - but always measure what leads and sales these are generating) 
• Staff training (make sure your sales team keep learning and improving as this will improve sales)
• Your training (as a business owner, the better you are at business, the better your business will be - so don't stop investing time and money in your own training, and seek quality advice when you need to)

Action Points
1) Profile your customers and list what markets and opportunities there are for growth.
2) Go through your expenses to see what you can reduce.
3) Decide on one area you need to improve on personally that will help the business (this might be marketing, selling, negotiation, dealing with staff, etc), and commit to improving with some formal training.

If you want to make your business successful and get rid of the problems and frustrations that keep you from getting the result that you want, then it is time to identify exactly what the problem is. And it is TIME TO GO TO WAR.

I was listening recently to this motivation guy Brendon Burchard who was talking about going to war on the area of life that is causing you the most difficulties. It got me thinking about how this concept is very relevant to business.

Imagine you are a general in an army. There is key territory that, if you can take it, will be a prime position for you for all communication and a base where you will be able to launch future attacks on your enemy. It will be the difference between whether you win the war or not. This is valuable territory and it is a must-win - get this and you have made some serious ground - lose this and things are going to be much harder and you will be at a major disadvantage. Basically this is the tipping point for success or failure.

So what do you do? Try one attack and hope for the best? No, it's way too important to stop there, so you throw everything at it until you win. You send in spies to get the lie of the land, planes and missiles to disrupt the enemy, place ground troops in key locations, you have back up troops in case the first layer are overcome, you have boats waiting with more men in case they are also over-run. You have bulk supplies of weapons and food in case it takes longer than you expect. You send in your best most highly trained soldiers at key times. Basically you do whatever it takes for as long as it takes. 

What about if you just did one thing? You send in your troops, and if they don't succeed then at least you have tried. What would the result be? You might get lucky and catch the enemy off guard, but most likely you would fail the first time. Would your peers be happy with this approach? I very much doubt it. Yet often I see this approach in business; all too often, even when the key territory will make or break the business.

Let's look at how this approach relates to business:

A local restaurant is struggling. It's the middle of winter and sales are down - our humble business owner is losing money. The bank account is in overdraft. Basically his problem is that these lean months are eating away at the hard earned profits he has made during the year. If this keeps going he will have nothing to show for his hard work for the whole year.

So he puts an ad in the local paper - it doesn't work - not a single customer! Oh well, he did his best, he tried, but it's winter time, what else can he do? Just have to wait until things get a bit better and bleed in the meantime. No! No! No! He can do way better than that!

What if instead, he decided to go to war on the problem? What if boosting profits during winter was the key territory he must take? What if he threw everything at it until the sales and bank account moved in his favour? Let's have a look at some quick strategies he could apply:

He could increase sales by:

• Using his customer database to send his regular patrons a special invitation and free dessert promotion for winter 
• Teaming up with the local jeweler and offering a voucher for a free main meal at the restaurant when customers buy jewelery over $500.00
• Training his staff to give better service and up-sell desserts and drinks 
• Offering the local businesses in the area a takeaway lunch special 
• Encouraging his best customers to put their feedback on dining websites like Dine Out and Trip Advisor
• Launching a Facebook page and advertising to his local market
• Trying Google Adwords with a special offer
• Starting up a happy hour with a live band (where there are good margins on drinks)
• Having a themed party night and promoting the heck out of it (eg if you had an Indian restaurant what about a Bollywood night)
• Initiating loyalty cards with free extras after spending x amount
• Doing a good old mailbox drop of nearby businesses and homes with a special limited time offer
• New signage, or signs advertising specials of the day

He could reduce costs by:

• Negotiating with key suppliers for better deals
• Reducing staff hours in the most quiet times
• Modifying the menu and getting rid of the poor selling meals which take all his chefs time
• Reducing wastage

There are plenty of other things he could do also, but you get the picture.

By just picking one of these strategies each week - it won't take long before the bank account and profits are looking a whole lot better.

So are you ready to go to war in your business?

What "key territory" do you need to capture for your business?

What will make all the difference?

What is the biggest frustration or challenge in your business right now?

What is the obstacle stopping you from achieving the results you want and need?

TIME TO GO TO WAR.

Action Point: 
1) Pick that one problem in your business that is causing you the most grief and decide to go to war against it. 
2) Write down at least 8 strategies you will use to beat this problem once and for all.
3) Schedule time to apply one of these strategies each week in the business. 
4) Commit to completing the whole 8 weeks and don't give up if the first few things don't produce results.

As a business coach, sometimes I have to have awkward conversations with my clients...

These conversations can feel awkward because FACING REALITY and making a CHANGE isn't always easy. And sometimes the TRUTH is hard to hear - but these conversations address what is really going on - and they are essential to make you and the business the BEST it can be. 

Remember the main restriction of any business in nearly all cases is the owners' abilities and thinking. So take a look and see if YOU need to have an awkward conversation.

"So do you actually know how much profit you are making?"
The first awkward conversation business owners can expect when I start working with them. You wouldn't think so, but many just don't know how they are going month to month. This is a crucial piece of information to know; after all you CAN'T win if you don't know the score. And it's way too late six months after the year-end when your accountant tells you the result. There is nothing you can do then. That game is over, you are playing the next one. You can only look to next year. Don't be scared of the outcome of asking this vital question, because when you know your figures, then you can improve.

"You aren't actually making any money."
Talk about an awkward realisation! Many business owners are working very hard for very little return. IT AIN'T RIGHT! If you discover that you are not actually making any money in your business then instead of freaking out, you just need to fix it fast. Ultimately when you lose money in your business, odds are it won't be long before you will need to start dipping into your own pocket or going into more debt, to pay the bills. And if you are consistently losing money, you will not be in business for very long. For a business to survive it must make profit, so if you are not, find out WHY and make a new plan.

"If you don't sort out your cashflow, bad things will happen."
You have all heard the saying 'cash is king'. If you run out of cash you are in trouble. It won't take long before your suppliers or the bank say "enough". If your cashflow is continually stretched, this puts a lot of unnecessary pressure on you and the business. Get this one right and you halve the stress! Cashflow often gets left undealt with, but believe me, if you have issues in this area, you need to set some time aside to sort it out now (and it's not as difficult as you think).

"Are your staff really no good?"
Is it a case of "It's not you, it's me"? We all have employed staff that just did not make the grade, but this should be the exception not the norm. If you are consistently dealing with poor staff you are either picking the wrong ones or maybe it's you. I talked with a business owner once who said he "hated going to work", and told his staff this regularly - I bet with an attitude like that, his staff felt exactly the same way. Staff need leadership, reassurance and feedback good and bad. If you are not happy with your staff, then work on changing yourself and your approach first, then them. If you hate going to work - well, you are the boss, so change it.

"Are you a workaholic?"
I ask my clients how many hours they are working and if they think they can keep this up week after week, month after month, year after year. We all know many business owners consistently work 55+ hours a week. Remember friends, business is a marathon not a sprint. It's okay to work long hours for a while, but in the long term I can guarantee you that you will not be at your best and neither will your business. We are made to work AND rest. It's during the rest times where inspiration comes and we often have those 'a-ha' breakthroughs. You will achieve a lot more if you rest regularly. Remember your best asset is yourself. After all, if you get sick, how much work happens? Usually not much.

"Your family is missing out  - and you know it."
This really is awkward to address but if your family starts falling apart, guess what you are going to be doing? It's not going to be working more - a family crisis puts a stop to that real quick. Not meaning to be negative but bad stuff happens sooner or later to all of us, but spending time with your family will build a solid foundation to deal with it and minimize the downside (and hey, it's a lot more fun). If you are not married/shacked up, or do not have children, the principle remains - you still need to invest in those important relationships in your life. After all, owning a business should give you a better lifestyle than being someone's employee. If it's not, then something needs to change, RIGHT NOW!

"Is your business causing stress in your marriage?"
Very common scenario, especially if your partner is involved in the business in some capacity. If the business is not going well, then despite your best efforts, you will be bringing these stresses home with you, and it will affect the people you love. If you don't believe me, ask your partner. My bet is that you will be arguing about the same business problems over and over again - maybe it's time to face them and do something about it. Don't let work problems steal your profits, happiness, or your life.

"You are getting distracted." 
This is trap that we all fall into at times. If you are not making the business better in some way, every day or at least weekly, then you are not working ON your business, you are working IN it. Stop doing the small tasks, delegate them and start working on the important ones. And remember delegate, delegate, delegate everything you can. 

How did you do? Are some of these relevant to you? Some of these questions may make you feel frustrated - that's good - it means it's time to do something about it. If you do, the rewards can be amazing. So dare to peek behind the curtain and tackle the issues head on.


Action Point: Spend a few minutes now writing down the top three awkward conversations you need to have and then make two action points for addressing each one. Commit to take this action - then as Nike says "JUST DO IT"!

Cookie Monster first appeared on Sesame Street in 1971, and there are very few characters that have been popular for this length of time - puppet or otherwise. To have lasted this long, we can conclude that he has done some things right and as any child will tell you he always gets the cookies - so let's take a look at some of the lessons we could use and apply to business, from this very likable childhood icon........

1) Mission
Cookie Monster has one vision or mission - and everyone know what that is. He wants cookies (not cake, walnuts or apples), cookies - and no one around him is in any doubt. What is your mission for your business and does everyone know it? - your staff, customers, suppliers........ Apple's mission was to make the their Mackintosh computers/iPhones/iPads easier to use than anyone else and the world knew it - so what is yours? 

2) Focus
Very few people have anything like the focus that Cookie Monster has. Virtually nothing can distract him from his goal of that next cookie. What is your main GOAL? and how can you make sure that you do not get distracted from it?

3) Enthusiasm
One of the reasons why Cookie Monster is so likable is is absolute enthusiasm. Just watching him you can't help but have a smile on your face and catch a little of his enthusiasm yourself. People like to feel good and believe in something. The more enthusiastic you are, the better customers, associates and staff you will attract to you and your business.

4) Action
GOALS are great but without action they are of little value. Cookie Monster imagines how good the cookies will taste - and then he takes whatever action he needs towards finding them. He will look anywhere and everywhere until he has his cookie.

5) Standards
Cookie Monster loves cookies, but he still has standards. He doesn't hurt people on his cookie missions. As you persue your business GOALS make sure that you not only make a better business for your customers, staff and yourself, but that you also ensure the world is a better place because you and your business are there.

6) Enjoy the Journey
Remember that although the GOAL is the end destination, it's really about what you learn and become on the way. Cookie Monster takes enjoyment and pleasure every step of the way, imagining the cookie, enjoying his friends on the way, finding the cookie, eating the cookie, remembering eating the cookie. So make sure you celebrate and enjoy every step along the way. Business is not always easy so celebrate every win you can.

7) Timing
Timing can make the difference between success or failure. Cookie Monster although he is not always the smartest, has a habit of being in the right place at the right time. In business make sure that you are in the right place. If you are an accountant wanting business clients, you are unlikely to find many by advertising at the local rugby match. Better to advertise at a local business event instead.

8) Recognizable
Cookie Monster is recognizable wherever he goes. He is a big blue monster, and with slogans like "Me eat cookie!" every kid knows and understands him. Make sure that your business has a strong logo and colours, and that your story is clear - to make you recognizable to your market.

9) Keep Learning
Even Cookie Monster is still learning. As we can see by his latest YouTube hit "Me Want It (But Me Wait)", he is now learning self control, delaying a few seconds to enjoy the cookie even more. Every business is a reflection of the owner, so you need to keep growing to get the best from your business. So keep learning and becoming better both for your sake and your business.

Action Point: Take a minute and write down one thing from the lessons above, that you know you need to do to improve you and your business. Then decide on the next step - it might be getting a book on the subject, asking another business owner how they solved the problem, or getting hold of a mentor to help you work it out.

When I first begin working with a business to improve profits, we start looking for the low-hanging fruit first. Just like when you are picking fruit from a tree, some fruit is low-hanging and easy to get to. At ground level there will be some fruit you can just reach up and take without a lot of effort. However as you move further up the tree the fruit will be in harder-to-reach parts which may require climbing, or the help of a ladder.

The same principle applies to business. We are all busy and the reality is that if we look around the business there are literally dozens of things that could be actioned to improve profits. But the fact is, it is unlikely you have the time to action a dozen changes, certainly not in the short term anyway.

Here are some examples of low-hanging fruit I have seen in businesses, which, when actioned, had a dramatic effect on profit:

Negotiating with suppliers - Look at the pricing from your largest suppliers and compare with their competitors. Then renegotiate better buying pricing to increase your margins. Often with suppliers they supply pricing to a business, the business grows but they are still on old pricing based on smaller volumes.

Approach old customers - Start approaching the old customers who have not brought from you for a while. A number will buy from you again if you just ask.

Tell your customers about other products - Start offering your existing customers products/services they are not currently buying. Most will not even know what else you can do for them.

Shop window - In retail, displaying specials, new stock, or add-ons that goes well with products you sell a lot of, will entice customers to buy more, and bring new customers through the door as well.

Collecting the money - Instructing your accounts person to make a few phone calls to chase up outstanding debts can make a big difference. Holding them accountable to do this job takes only minutes.

Invoicing on time - Many businesses do not invoice on time and it causes problems down the line. This may not give you more profits directly but you will certainly have more time and less stress without cashflow headaches.

Pricing - Simply increasing your prices by a small amount will make a big difference to your profits and in most cases your customers will not even notice.

Promoting your best sellers - Identify your best selling products, and products that have great margins. You can easily promote these (for example in an email to your customer database, or on your Facebook page) - and sell more of them.

Regular staff meetings - If all your staff a) feel appreciated and encouraged regularly b) know what is expected of them c) know about your latest specials and where you are heading as a business - this will result in more efficient staff, more sales, more profits.

These are just a few examples. Take a moment to ask yourself "what is the low-hanging fruit in my business?" and "what are the easy wins that will increase our profits dramatically without a lot of effort?"

Remember, business does not have to be complicated. Even if you do not have a lot of time or energy, you can still be making small positive changes to improve your business. There are always some things we can do to improve that are quick and easy. So reach out and grab what you can get! I promise you the rewards are delicious!

I recently attended an ANZ seminar on Business Growth put on by Stephen Caulter, and one of the questions posed to the group was "If your business is growing should you be worried?".  Very good question Stephen.

The answer if you are not sure is Yes, you should be worried. It's great that your business is growing and it's exciting because it is a time of great potential. But if you are not careful you are in danger of quickly running out of money and losing control of your business.

This is happening with a lot of trades and related industries at the moment. Here are some of the warning signs that show you are heading into danger.....

Losing Control - Business is really busy, it's exciting but the problem is, now all you do is put out fires and you are anxious about where the next one is going to come from. You are working longer and longer hours. You used to know how much money you had in the bank, who owed you money, what your staff were doing, who your customers were, and you had high quality standards. Now you are so busy that you don't have time to even think about these things any more - you have lost control.

Customers not paying on time - Invoicing is not being completed until long after the job is finished and no one is chasing old outstanding invoices.

Bank relationship is getting strained - You are going over your overdraft far too often, and the bank doesn't want to lend you any more money. 

Suppliers not happy - The amounts you owe your suppliers just keep getting larger. Previously your supplier was happy with you being a few months overdue, but now they want you current on your account and are putting limits on how big the account can get. It doesn't seem to matter how hard you try to keep current, it isn't happening and it is starting to affect your business in a big way.

Stock accumulating - As your sales increase, in most cases you will need more stock to keep ensure that your customers have what they want when they want it. Employees are buying product ahead of time. You look around your business and see stock accumulating in all sorts of places.

More staff but less efficient - You have more staff now and you are finding that they don't seem to be getting much more done than when you had less staff. (Chances are your instincts are correct.)

Quality control - There are far too many jobs not being completed to your previous standards, customer complaints are increasing and you are spending way too much time going back to correct old jobs. 

Too many of the wrong kind of customers - Some of you may be thinking "Daniel I have been following you so far, but this sounds a little crazy - I know some of my new customers are a pain - but more customers can only be a good thing. Right?"

Let's look at a example. A plumber may be very good at working in well with small building companies. He has a good ad in the yellow pages online and as his industry gets busier, he is now getting a lot of small one-off jobs from individuals that take between 1-3 hours each to complete. However by the time his employees travel to these jobs, work out what is needed and then do the job, he finds they can only bill out the full hourly rate of billable hours for 4 out of the 8 hours per day. By comparison with the builders he can get 7 out of 8 hours charged that day. If he is honest, on some of those smaller jobs he is losing money or at best breaking even. So if he grows with these smaller jobs, he either has to become really efficient or will be losing money. In effect doing twice the work for half the profit.

If you are growing it is essential that you have a good plan for growth that addresses these problems. If you do not, it won't be long before you run out of money. If you are seeing some of these signs in your business then do something now before it's too late.

In my last article, we looked at the five key problems in Canterbury businesses in the current economy, as identified by MYOB in their latest business survey results.

I am listing these for you, along with some strategies to help you conquer these big problems. I hope you find it useful.

'Competitive Pressures' and 'Customer Acquisition' ranked as the number 1 and 2 key problems. We looked at those last time. Here is number 3:

# 3 - Price Margins and Profitability
Although this has been ranked as third, in my book this would be first. Many, many, many businesses I come across just don't look at this closely enough. I always make sure my clients understand their profits and margins including what they need to make profit... because without profit you will eventually go broke. Every business owner must know their numbers to stay in business - it is just that important.

I often see companies increase their sales, but reduce their margins to get the work. Or even worse, they loose sales and then drop margins to compete - very very dangerous if you don't know the numbers.

Make sure you know the margins on all products and services you have. Also you need to see every month if you are making a profit or loss. If you don't have monthly figures, the good news is that they won't be to hard to get. Whoever does your GST returns will have them. This will be your accountant, bookkeeping service or staff member. Ask them to show you, and go through it to find out your sales, margins, and profits. When you know sales, margins, and profits, you can look at what you need to do to improve them.

Pricing is a good place to start; even an increase of just 5-10% will have a big impact on profits - and most of your customers won't even notice.

If you are still unsure on this one, give me, or your accountant, a call.

Another problem you may be facing is:

# 4 - Customer Retention
Keeping your customers coming back time after time is really the backbone of almost every business. It is important to understand that generally, by the time you pay for costs of getting a new customer (in advertising, discounts and so on), you do not start making money from them until they become a regular customer. If you have gone to all the trouble of getting them, it is worth spending some time thinking about how to keep them. Often business owners are so busy chasing after the new customers, they forget about the old ones. Madness!

There are literally hundreds of strategies for keeping customers coming back, but there are two principles that can be applied every time:

First, give them a reason to come back. Try a loyalty card or offer them a discount off their next order.

Second, keep in touch with your precious new customer through Facebook, newsletters, regular specials, offering them different/new products, a thank you card, etc.

Remember that friend that you were so close to a few years ago; you didn't keep in touch and now they have drifted away? Well, customers are the same. There are plenty of competitors that want your customers and they are spending thousands of dollars in ads and special offers to get them. Don't let them steal your customers! Keep in touch and make sure your customers know you value their business.

And rounding out the list of top five problems businesses in Christchurch and Canterbury have in the current economy - SURPRISE! it's:

# 5 - Cashflow
No money in the bank and lots of creditors to pay = stress, stress, stress. This one can be a real killer. Enough pressure from cashflow and it takes all the fun out of business.

Cashflow problems will be caused by one or a combination of the following:

• Poor margins
• Poor profitability
• Too much stock
• Not invoicing on time
• Not collecting money when due
• Rapid growth (don't underestimate this one - this will kill you if you don't see it coming)
• Under capitalised
• Buying new equipment or assets and trying to fund it from existing cashflow

(Re-visit my June newsletter for more on this; email me for a copy if you have lost it)

Bottom line is - to fix your cashflow problems you need to understand which area or areas are at fault.

Start setting up KPI (Key Performance Indicators) in whatever area you need to improve.

Just like in sports - all the best teams measure everything they can that will help them win the game. In rugby the Crusaders measure metres gained, number of tackles, number of missed tackles, number of penalties etc. They decide which key numbers will make the most difference to their game and then work on improving them.

In business it should be exactly the same. For example in Accounts Receivable start measuring how many of your customers are overdue, their dollar value and the percentages. Decide what is acceptable and start working on getting that number or better. This will put you back on track. But don't stop there - make sure you watch this figure closely every week and month. Compare each month to see if you are getting better or worse.

So - those are the top five problems in Canterbury businesses right now and some ways to deal with them.

The big question for you now is - what you are going to do next? Do you say, that was great information and carry on as you were. Or do you pick at least one thing and take action? Only then will it help your business and increase your profits.

Last month I attended a business advisers meeting and MYOB presented their latest business survey results. In this they highlighted the top five key problems Christchurch and Canterbury businesses are facing in the current economy. 

As most of my clients are in Canterbury, I thought it would be useful to list each problem and give you some strategies for how to go about fixing them.

I have listed the problems in the same order as the survey results. This may not necessarily be the same order for your business, but I know that at least one of these is most likely one of your biggest challenges. The first is...

# 1 - Competitive Pressures
The pressures you are facing from other competitors in your market place. If you are in retail for example, a real competitive pressure is most likely the internet and the growing level of purchases online of similar or even the same products as what you are selling.

Every business needs to at least be aware of what these competitive pressures are for them, and how they are affecting business. I am not saying that you should spend all your time worrying about this, but it is important to pay attention.

A great place to start is by asking yourself these questions:

• How are you rating compared to your competition and how are they affecting your business?
  
• How are your competition getting customers?
  
• What am I better at than my competition?

The last question is the most important one, for if you know what you are really good at, and play to your strengths, you will win the game here. Let me illustrate:

I stand a towering 5 foot 3, so I don't often get called a giant (except maybe by my kids). I used to play rugby in North Canterbury and would always be playing against much bigger and physically stronger players than myself. But I also had strengths - I was a little quicker than the others, I had a lower centre of gravity, and I was fitter, all of which meant I could still compete. For example when tackling players who were on average 1.5 to 2 times my own body weight, by going low around their legs, they could not fend me off, so my success rate in this part of the game was very good. However if I tried going high they would push me off and I would be the one kissing the dirt.

Nice story I hear you say, but how does that relate to me. Well, start by asking what your strengths are - it could be that your business has the best products, superior service, location, best staff, largest product range...

Now start promoting these to your customers, leads and prospects, and you are now standing out from the others. Do this well, and customers who value these strengths you offer will start flocking to your business. Play to your strengths, and make sure your customers know what you are really good at.

Going back to our retail shop, advantages they have over their online competitor could be better back up service, knowledge, expertise, less "risky" to deal with etc. That personal service still has value, and you can guide your customer in making the best choice product for them. Online in most cases cannnot provide this kind of one on one service. 

Let's look at the next big problem that many businesses face.
 
# 2 - Customer Acquisition
Getting (acquiring) new customers. Every business needs a good healthy stream of new customers. You will always be losing some customers no matter how good you are. Sometimes they shift to another town, they are earthquake affected (we all fully appreciate this one), they no longer need your product or service, they are at a different stage of life, or...  It is important to have a good robust short and long term marketing plan. Why short and long term? Because you need to be attracting the type of customers that give you a long term future for the business not just a short term boost without repeat sales.

The 50% off ad in the local paper, or Grab One? Sure it will give you a boost for a week - with one-time customers that take the deal and disappear off looking for the next bargain never to be seen again. This is great to help you be busy, but it won't necessarily create you a business. Better to first work out who your best type of customers are, and target them specifically. Grab One or 50% off may still fit, but you are now seeing the bigger picture.

A client of mine is a stock feed supplier. We discovered that a very profitable customer for him was farmers with lots of working dogs. They regularly buy biscuits and other products from him every month without fail. They were easily to find and they were regular steady income. They also had good profits and margins.

So work out the ideal customer groups for your business, and then work on attracting them. Remember we can't be all things to all people, but we can become very good, almost unbeatable, at servicing a certain type of customer.
 
So we have looked at the first two of five key problems in Canterbury businesses. Look out for the next exciting article and we'll look at the remaining three problems.
 
In the meantime, think about what edge you have over your competition. And how to attract new long term customers.