Never before has there been so much pressure on entrepreneurs to innovate if they wish to survive in one of the toughest business environments in decades.
According to the World Economic Forum, Europe’s expansion will slow even more.
Political uncertainty, including Brexit, challenges to Emmanuel Macron's government, and the winding down of Angela Merkel’s chancellorship, are contributing to a decline in business sentiment.
Economic factors such as the tightening of credit conditions and heightened trade tensions are also driving the deceleration in growth.
So, as a small business owner, how are you going to not only respond but innovate to ensure that you do not head straight to bankruptcy?
Here are three tips to ensure that you don’t lose your nerve in business: -
1. Don’t Let Uncertainty Be Your Mantra With all the negative, doom and gloom narrative around the BREXIT no-deal, it’s easy to believe that it’s only going to get worse. But that’s a short-term perspective.
With the excitement and development of technology, potential collaborations and a revived mindset, the horizon looks optimistic.
Research shows that companies that are digital leaders in their sectors have faster revenue growth and higher productivity than their less-digitized peers do. They improve profit margins three times more rapidly than average and are often the fastest innovators and disruptors of their sectors.
If you are unsure about how to proceed, this is the time to invest in a mastermind group or coaching to ensure that you are focussed on the long-term opportunities available for your business.
It’s always good to get a fresh perspective. There is a reason why small business owners are the backbone of the economy. Emulate.
2. Automate Where Possible
Too many entrepreneurs complain about having to deal with problems rather than spending time working on their businesses.
Bogged down with time-wasting habits rather than coming up with solutions for their business and customers; improving productivity and generating sales.
Advanced automation (and AI) is the future of business, and we see this happening in super-performing companies.
Small business owners should not be intimidated or afraid of embracing automation. It is not an unnecessary cost or inconvenience.
Irrespective of the size of your business, there is a wide range of affordable algorithmic technology to enable management to create their own automated processes to support most areas of the business.
If implemented correctly it allows you to focus on productivity-boosting opportunities,
Automation is an investment and key to helping become more efficient, perform better and more importantly, focus on more profitable activities.
You may not have a big budget for a complete overhaul, but you can learn from big corporates and automate where appropriate in your business.
3. Look for Ways to Disrupt
It’s not just about building relationships with your customers, are you doing enough to enhance your brand and improve the customer experience?
Keep an eye on what the large organisations are doing.
Adidas realised it was not enough just to showcase their collections in the traditional way in-store. They wanted to create an experience that would keep their customers coming back again and again. But more importantly, spreading the word about the “experience” hopefully creates profitable tribes.
They built a training section which provides free workout workshops facilitated by members of the Adidas Training Academy on the shop floor.
They upgraded their changing rooms to look like professional locker rooms, creating a “members” feeling where customers felt a memorable, fun experience. Not only does this differentiate them from the competition, but they are also definitely building brand loyalty.
So embrace technology to be ever-innovative. Look for ways to collect data about your customer’s habits, preferences and needs so that you can target your resources and marketing efforts to meet their needs more effectively.
Whether it’s a loyalty card, competitions or more interaction on your social media platforms collecting and responding to your customer's data will ensure that you stay relevant and more importantly, in business.
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