Economists say the Great Recession–the longest and deepest since World War II–ended 18 months ago and that the U.S. economy is, in fact, growing again. That doesn’t mean sit and wait for things to improve. Rather, Entrepreneur advises retool for the economy that exists today, and will be lingering for many tomorrows.
Double Down On What Works.
Whatever paid off in 2010 is worth investing more time, money and resources next year. Ask yourself: What was your top-selling product or service, and how can you get your customers to buy more? What money-saving strategies went straight to the bottom line? What incentives or promotions got your customers’ attention?Fire Your D-Grade Customers.
“High-maintenance, low-margin customers are an impediment to deploying time and resources more profitably,” says Joseph Fulvio, a consultant in Doylestown, Penn., who specializes in growing small businesses. “Get rid of them.” Make a list of your customers and give each of them a grade. Then dump everyone below a C–or a B, if you can afford it. Once you’ve separated the winners from the losers, put a plan in place to turn those laggards into A-listers. Going forward, use those criteria to size up new business.Leverage Your Brand.
In this economy, it’s more important than ever to avoid becoming a “me, too” brand. Low prices and quality service are no longer enough. Whether it’s a YouTube video, an iPad app or a free tasting event, offer something to make customers take notice.Photo by my.opera.com.