What Happened When Using the Magic of Critical Thinking

It May Be Hard, But Don’t Give Up.?

According to the United States Small Business Association:

30% of small businesses fail within two years.

50% fail within five years.

Only 25% of business will last 15 years or longer.?

Any small business owner will tell you that running a small business is challenging even in good times. Using creativity and a bit of GRIT, it is possible to thrive under incredibly tough circumstances.?

For example, breweries got creative:

Yuengling made ice cream.

Pabst made cheese.

Coors produced dinnerware.

Schlitz churned out chocolate.

Stevens Point Brewery went into the soft drink business.?

It’s early in the new year and there are goals on the board to accomplish. Before stepping into that big hairy audacious realm, let’s go back to basics and strengthen your foundation before leaping forward.

A leaky dike cannot hold back more water.?

This small business survival checklist guide will help your business thrive during difficult times. Thinking like a business owner will protect or launch your career in Corporate America too.?

1.????? Manage Your Mindset?

This is the most important first step. You are your business and your career. Both demand all of you in top form. Engaging in a variety of negative thoughts is highly self-sabotaging. To stabilize how you fund your life, seek a positive mindset.?

History proves you are not alone. These business greats struggled too:?

Thomas Edison failed thousands of times before developing a fully functioning lightbulb.

Apple almost collapsed under bankruptcy when Steve Jobs was president.

Bill Gates' first business was a complete and total failure.

Henry Ford’s first automobile business went bankrupt within a year.?

They persevered and were incredibly resilient to overcome a negative mental state by:

a.????? Paying closer attention.

b.????? Asking questions.

c.????? Sitting in silence.

d.???? Replacing the doubtful outlook with the silver lining lesson.

e.????? Reconnecting with your WHY.

f.?????? Tapping into the true emotions and desires that originally pushed you to create your business or enter your career.?

2.???? Clarify the Problem?

Pause to think about how you got to where you currently are.

a.????? Market changes?

b.????? Failure to understand the target customer or market?

c.????? Poor pricing strategy?

d.???? Insufficient funds?

e.????? Too much growth too quickly??

Identifying key problems within your business can be a painful exercise. You must determine their root cause before you can define the proper solution.?

3.???? FOCUS On Your Customers?

If you don’t have customers, you don’t have a business. Airlines are an example of what happens when you forget about your customers. Keep your customers at the top of the priority list.?

a.????? Before making changes, consider how they will affect the customer experience.

b.????? If you make changes that directly affect the customer, communicate those clearly.

c.????? Explain why changes are happening, when they will take effect, and how the changes will affect customers.?

During times of global crisis, it is especially important to keep the FOCUS on customers. During the pandemic:?

Many educational companies made their resources free to parents who were suddenly forced to homeschool their children.

Audible gave away free audiobooks for kids.

Moz provided free courses on search engine optimization to help businesses strengthen their online presence.

Loom offered significant discounts on their video recording platform so people could stay in touch with family and friends.?

Customers will remember the benevolent actions taken by these businesses and will be much more likely to support them in the future.?

If you keep the FOCUS on customers, there’s a much greater chance that your business will weather the tough times.?

4.??? Conduct a SWOT Analysis?

A SWOT (strengths, weaknesses, opportunities, threats) analysis provides you with a framework for analyzing your business or career moves.?

Strengths - the things you have control over and are working well.

Examples of strengths…

Effective sales team

Proprietary technology

Proven marketing strategy

Powerful systems/processes

Strong customer base?

Weaknesses - the things that aren’t working well.

Examples of weaknesses…

Ineffective marketing strategy

High production costs

Low profit margin

Poor customer retention

Ineffective internal processes

?Opportunities - the external factors that have the potential to benefit your success.

Examples of opportunities…

New technology

Less competition

Fewer taxes

New markets

Improved economic environment?

Threats - the external factors that could possibly hurt you.

Examples of threats…

Increased competition

Changing customer preferences

Worsening economic conditions (recession)

New regulations

Significant technological changes?

Performing a SWOT analysis will help you overcome your weaknesses, capitalize on your strengths, and take advantage of unique opportunities.?

5.???? Manage Your Cash Flow?

A lack of incoming cash overtime is one of the biggest reasons small (or larger) businesses go under.?

A simple formula to calculate cash flow: at the end of the month, add up your incoming cash and subtract from all your outgoing. If it’s a negative number, go back and figure out WHY.?

Leading with revenue, not debt (increasing credit lines or loans), is key for decision making. Stay abreast of your cash flow.?

6.??? Meet With An Accountant?

Select an accountant who will help you understand how to read your financial statements regularly. Monthly is even better!? Don’t be afraid of your numbers. They tell you the truth when your EGO wants to say something else.?

Accountants can help you:

a.????? Implement money-saving tax strategies.

b.????? Help you secure financial assistance from the local, state, or federal government. For example, the Small Business Association (SBA) offers low interest loans and grants (money that does NOT need to be paid back) to qualifying businesses.

c.????? Help you think through direction impacting financial decisions.?

Accounting software can never replace critical, strategic, and creative thinking of a seasoned accountant with the human touch.?

7.???? Use Free or Low-Cost Marketing?

When your business is struggling, don’t throw spaghetti at the wall. Use specialized free or low-cost marketing consistently to simultaneously cut your budget and increase your return.?

Free or Low-cost marketing:?

·???????? Regularly ask your existing clients for referrals.

·???????? Connect with local business networking groups to grow a presence in your community.

·???????? Trade fairs, business, or professional organizations will connect you with key individuals in your industry.

·???????? Write guest blog posts for websites in your industry.

·???????? Appear on podcasts that your audience listens to.?

·???????? Develop strategic business partnerships that foster cross-promotion.

·???????? Build an email list and then consistently send out valuable information to your subscribers (my personal favorite).

·???????? Sponsor local events (charitable, sporting).

·???????? Maintain a consistent presence on the right social media platforms for your business.

·???????? Create highly targeted online advertisements.?

·???????? Develop a cold calling strategy and make calls every day.

·???????? Develop relationships with influencers who may be willing to promote your products.?

·???????? Create an affiliate program that rewards people who promote your products.

·???????? Host events or classes (locally or online).

·???????? Offer to speak at local business groups, community colleges, libraries, and conferences.

·???????? Create a YouTube channel where you repeatedly deliver valuable information.

·???????? Run online contests.

·???????? Offer a free trial of your product and turn it into paying customers.?

When it comes to marketing, you’re only limited by your imagination. Be Persistent, Be Creative, and learn when to Pivot.?

Blockbusters did not see the future when Netflix wanted to be bought out by them.

Even in the worst circumstances there are still options.?

Business pivots during COVID-19:?

Anheuser-Busch began manufacturing hand sanitizer.

Hanes started producing medical masks.

Lyft used their huge fleet of cars to deliver medical supplies.

Ford used its infrastructure to make ventilators and medical face shields.

Farmers Restaurant Group shifted to delivering food supplies to customers.?

How can you pivot in your business, so you stay afloat and meet the demand of your clients??

The Pandemic was not the last of its kind. The reality is that every business will face challenges. These difficulties don’t need to sink your business or career.?

Don’t give up. Persistence produces success. Have a sense of Urgency and Act Today. Tomorrow is procrastination and can be too late.?

Checklist Summary: Ways to strengthen your business:?

1.?????? Manage your mindset.

2.????? Clarify the problem.

3.????? FOCUS on customers.

4.????? Conduct a SWOT analysis.

5.????? Create objectives and a plan.

6.????? Reduce costs.

7.????? Use free or low-cost marketing.

8.???? BONUS: Hire a proven business and leadership coach to shorten the learning curve by assisting with all the above! (Our type of services are a tax deduction so check in with your accountant.)?

Each of these steps requires work that can be hard to do alone. If you act on this checklist, you will dramatically increase the odds of your future survival and thrive.?

Sadhguru:?“When your mind is full of assumptions, conclusions, and beliefs, it has no penetration, it just repeats past impressions.”

The “never give up, just get better” attitude will keep your business or career afloat. How fulfilling is that??

Interested in a workshop on this? One that is not DIY canned, evergreen, or bot led. Instead, virtual with me LIVE as the light customizing my approach to meet you where you are now to where you can go. Let me know in the comments!

?FOCUSING Leaders Forward with Success,

Donna

#focusedleaders #entrepreneurship #business #leadership