Business Tips: Survive and thrive in today’s economy

For many small business owners, the Great Recession is over. For others, they are not quite ready to party like its 2005. But, the dramatic seachange that has happened in this country over the past 5 years has forced companies to shift their business strategy forever. What worked years ago is no longer effective.

1. Stop selling your products or services. Instead, start educating them as an expert. Most consumers can find any product they want to buy over the Internet. But, they have a greater tendency to buy from companies they know, like and trust. By setting up a systematic marketing plan that builds relationships with prospects, your company can always be there when they are ready to buy. This involves keeping in touch with them monthly and giving them something of value that showcases your company as an expert. This is not about pushing your product or service on them, but highlighting that you are an expert in an area.

2. Think local. Consumers can now get their products and services anywhere, but most would rather buy local than at the end of a 5,000 mile supply chain. Give them a reason to feel good about buying from and supporting the local economy. Stress local connections to the community, a family story and how long you have been in business. Given a choice, consumers will buy close to home. Most service searches are done with a zip code or city. Claim your listing on Google Places and Yahoo! Local so your business can be found when the customer is looking. If you can’t be found, you will never get chosen.

3. Go mobile. By 2014, searches from mobile devices will be greater than those done from desktops. This means that if your company does not have a website that is specifically built for mobile, now is the time to get one. Many desktop websites are difficult to navigate on a smartphone or use software like Flash that will not work on iPhones and iPads. Put your website address into your phone right now to check out what your customer will see.

4. Watch your cash flow. Easy credit for businesses may never appear again. Instead, look for ways to increase your cash flow inside your own business by reviewing your cash flow statement monthly. Do you have more or less cash at the end of the month? Pay special attention to items that use cash flow like the aging of receivables, payables and the level of inventory.

5. Pay for the best people. While unemployment is still high, great employees always have jobs. To attract and retain the very best, pay more than your competitors. The hard work and loyalty of your top employees will more than generate a return that will cover the additional expense.

6. Monitor your reputation. People are talking about your business right now. Information on Google is now searchable forever. Consumers pay more attention to earned media like online peer reviews in deciding on a purchase. Pay attention to comments and reviews customers make about your company online. Check sites like Yelp and Facebook frequently. Respond sincerely to both the positive and negative comments. This will build a community of supporters who want to talk about their outstanding experience with your company. These people will be the most effective tool any company has of attracting new customers.

Have you changed how you do business in the past 5 years? What have you done to survive and thrive?

Barry Moltz helps small businesses get unstuck. He is the author of four books, a motivational speaker, radio talk show host and consultant. He can be found at www.barrymoltz.com