Keeping an eye on the bottom line is important

It’s important for business owners to focus on the things they do well, yet it’s easy to overlook problem areas. Keeping an eye on the bottom line and adjusting budgets is important, especially when many business owners feel the need for a knee-jerk reaction to cut prices or expenses. Think of that old saying where an ounce of prevention is worth a pound of cure before this happens.

Running diagnostics and getting a tune-up isn’t just for vehicles and equipment — it’s crucial for maintaining a business. Three “Cs” that need to be monitored and frequently maintained are customers, competitors, and change. Failure to check, adjust, or repair problems in these areas can result in business failure.

They don’t have a gauge or warning light.

New customers are good indicators of how well marketing efforts resonate with a target audience. Another factor that results in getting new customers is what existing customers have to say about the business. Contacting clients to research if the business delivered on its promises and if they have additional needs is a great way to increase sales.

The term “firing a bad customer” has recently been in the vogue, but extreme caution is advised before taking such an action. Treating all customers with dignity and professionalism will prevail in the court of public opinion.

Competitors are counting on getting new business from another business’ disappointed customers as well as drawing new customers from the same target market. A sharp business owner will be aware of competitors’ advertising, pricing strategies, and offerings. Social media can be a good indicator of reputations and a marketing tool well worth the investment of time and effort.

Websites that are attractive, functional, and up-to-date are an excellent way to gain a competitive foothold in the market.

Another old saying is that there is nothing more constant than change. This is especially true for small businesses where technology frequently changes. A business that operates “in the cloud” can endure a disaster today and be back up and running tomorrow thanks to technology. Change is inevitable and often necessary to tap into growth opportunities.

Business owners need to be active in trade associations, attend seminars, enroll in a college course, join their local chamber of commerce, and invest time in learning more about industry trends and business technology.

Gordon Smith is a business specialist at the Small Business Development Center at Clovis Community College. Call the center at 769-4136 or visit http://www.nmsbdc.org/clovis