In a slow economy, sharpening one’s competitive edge is often foremost on small business owners’ minds. For some, it could even be requisite for survival. But challenging times can also mean great opportunities — if you know where to look.
How do you sharpen your business’ competitive edge? Survey the economic landscape and implement long-term goals. Avoid myopic, short-term approaches like retrenchment and other cost-cutting measures. Mind your spending. Be judicious in money management, especially your cash flow. If expanding your business becomes inevitable, do so organically — avoid cash infusion from outside sources that could put you deeper in debt.
Continue to seek new opportunities, and connect with potential clients at networking events. Educate yourself on procurement trends, requirements and schedules through workshops and seminars, participating in conferences such as the CelebrAsian Business Opportunity Conference held annually in May. This year, the conference, the largest of its kind in the country, is chaired by Pepsi Chairman and CEO Indra Nooyi, an Asian American who was named one of the 10 most powerful women in business by Time magazine. It will be held on May 27-29 at the Hilton Washington in Washington, D.C.
Listen to what your clients tell you — directly and indirectly. In challenging times, your customers will be your barometer for economic changes. Adjust your product or service to fit their needs. Continue to deliver outstanding, value-added and client-focused service. There is no substitute for keeping your clients satisfied, as this gives them solid reason to choose you over your competition.
Diversify your business by finding a natural extension of your product or service. This is perhaps one of the key steps to making your business offerings more relevant to the different demands of the marketplace. Without veering away from your core competency, the more products or services your business offers, the more clients and profitable partnership opportunities you could find.
Conventional wisdom suggests that you should cut back on marketing and advertising expenditures during an economic downturn — big mistake. Go against the grain. This is the best time to be more visible. Be proactive and aggressively pursue your networking ventures. Be seen and heard when the rest of your competition is in hibernation.
Use technology to your advantage. Invest in it, and harness the power of the Internet to make your business more visible online. This way, you will be able to maximize your exposure through access to a wider clientele across state lines — even across oceans.
Asian American business enterprises are innovative and resourceful, among other resilient qualities. Remember: Economic downturns are cyclical, so keep your eye on the ball. Be ready to step outside of your comfort zone, experiment, and seek creative ways to make your product and service better than today. This way, once the economic tide reverses, your business will be poised for more vigorous growth — and you will once again start hitting home runs.