The new economy is the phrase that is being used a lot lately. What does it mean and how does it relate to you and your business?
With the economic belts tightening for almost all types of businesses and for almost everyone who owns or works for one of these businesses, many understand this. They understand that the new economy is one that does not have a defined element that defines it and differentiates it from the old economy. The difference with the new economy, as I see it, is that businesses and individuals are being more cautious with purchases. Businesses and individuals no longer run out and buy a product or service. More thought is being put into making every purchasing decision. There is a greater interest in seeing the return on investment. This is something that no one in business should ever have stopped thinking about. Value for money is more important to many people now than it was a few years ago. However, this does not mean that everyone is looking for the cheapest service or item.
Businesses are run by people and people want good value, they also don’t want to buy junk or receive poor service. They want a balance between the two. People take notice and expect to pay more for better quality and service. If you are in a business that is fairly mainstream and where buyers and customers have several options from which to decide to give your business, then you will need to make your business stand out.
If your business is like all the others, then your service or product is a commodity and the business will go to the lowest price. Low price leaders often don’t last long.
When times are tough, smart business owners don’t price their products and services. Doing this will reduce your profits and make it harder to stay in business. Smart companies will work to increase the unique qualities that their company and service offers. Perhaps a better guarantee is offered to customers to help them stand out from the competition. Having flexible work hours to better accommodate client needs is another way to stand out. Flexible scheduling makes it easy for people to work with you without conflicting with their own occupation or schedule.
Whatever difficulty your business may be experiencing right now, it’s likely to pass. What you need to do to make sure your business is ready for the better times ahead is to differentiate yourself and stay profitable.