I read an article recently which states that financing may not be the problem for small businesses but it’s the drop in demand. Before the comments section in this blog gets filled with arguments, let me clarify. According to the NFIB survey conducted by Gallup, only 12% of their members cited that the problem they are facing is their inability to find credit while 29% said that bad sales was the problem. Credit is still tight and it will continue to be so until we are fully recovered from the recession. As it stands, it’s not going to be anytime soon.
So while the 12% of small businesses try to consider other financing options, let’s take into consideration what the 29% of small businesses need: more sales. The law of supply and demand is a basic economic principle which every business owner already knows. But knowing and understanding this principle is not enough to cut it in the business industry. You need to have an array of strategies to ensure that your sales are not going to suffer even though the whole world is going through a tough time financially. So how can you shift consumer demand and supply? Here are some tips:
· Double up on your marketing efforts. Retaining patrons by keeping them posted on your business’ latest offerings may mean that they would keep coming back but it’s also important for you to get fresh leads. Prospective customers need to know who you are, what you offer and why they should choose to do business with you rather than with someone else. Make sure that you schedule your time each day for you to spread the word about your business.
· Innovate and keep going at it. One of the factors that influences demand is that consumer tastes changes. So what they might find interesting or necessary right now may change tomorrow. The challenge for business owners is to keep improving their products and services.
· Quality and excellent customer service would help you outdo your competitors. Invest in quality products and provide your customers with excellent customer service. Word of mouth is a very basic yet powerful marketing strategy. Once you get the reputation of being the best in the business because of these two factors, your business would be on a more solid footing.
Demand for products and services may change over time but it doesn’t necessarily mean that the demand for doing business with your company would change. As long as you keep with the program and offering products that would stand the test of time, your business would continue to be sustainable even after the recession is over.