business environment Archives - Dr. Ivan Misner®

You may think you know why you’re in business, but perhaps it’s been years since you gave it serious thought. There’s no better time than now to re-examine why you’re doing what you’re doing. Ask yourself the following questions:

What is my business mission? — Beyond simply making a living, what are my long-range professional goals? Do I wish to become the standard by which my competitors are judged? Is it my dream to help make the world a better place?
Where is my organization going? — Am I achieving my mission? Am I making plans to accomplish it? How can I change policies, procedures or personnel to improve my chances of achieving my mission?
What environment is my organization operating in? — What are the social, economic and technological trends that affect the way I do business and my progress toward my goals?
What are my core competencies? — What do I like to do? What is it that I do better than my competitors? Is my business mission compatible with my values and aptitudes?

I’ve seen too many business professionals and companies make the mistake of trying to be all things to all people. Starting out with the fundamentally sound goal of finding a niche that will make them successful, they go astray by changing direction every time a customer or associate suggests a new product or service. The mission gets lost in a frantic scramble for business before the original idea ever gets a chance to pay off.

So, even if you think you know your mission, it will serve you well to pause periodically, analyze your business and, if necessary, refocus on your mission and philosophy.

It’s no secret that the economy goes through cycles. Each time it takes a downturn, unfortunately, salespeople, business owners and professional service providers feel the fallout.

Data released by various sources, including the SBA and American Entrepreneurs Association, reveal that more than 50 percent of all businesses close their doors within their first seven years. During a recession, the rate of business failure rises more dramatically. Not included in the statistic cited above are the departments, plants or whole divisions closed by large corporations when times are tough. In today’s ever-changing business environment, if you want to be successful, you need to have an edge over your competition.

Most businesses rely on advertising in one or more ways to try to get an edge. However, if you offer the same products or services through the same means to the same targets as your competitors, it’s difficult to achieve an edge. This means you need to be very creative in order to be competitive in today’s marketplace. Creativity in marketing your business has become a basic tenet for today’s successful company or professional practice. Here’s a great story of how one business exemplified creativity at its finest in order to gain an edge:

Three store owners shared adjacent storefronts in the same building. Times were tough. In hopes of picking up sales, the store owner at one end of the building put a sign over his front entrance that said, “YEAR-END CLEARANCE!!!” At the other end of the building, a second owner responded with his own sign: “ANNUAL CLOSE-OUT.”

The store owner in the middle knew that he had to act fast or he’d lose a lot of business. After careful consideration, he hung a larger sign over his front door that read, “MAIN ENTRANCE.”

The moral of this story: You can’t control the economy. You can’t control your competition. But you can control your response to the economy. And you can control your response to your competition.

If you have a great example of how you’ve used creativity to get an edge over your competition, I invite you to share it in the comment section. Your story could be just the encouragement other business owners need to get their imaginations in gear!

Business Networking

Successful Businesses Need an Edgestring(34) "Successful Businesses Need an Edge"