Worried owners of maturing and declining businesses always ask one simple question.
“How can my business survive?”
Here is the answer. Survival technique does not have a common format or template. You need to assess your business with some critical criteria and then you need to generate your survival technique. Below you will find some guidelines on how to assess your business and then how to generate your tailor-made survival technique.
Assessing your business and making your survival technique (ST):
1. Look at product: What is happening to your competitors’ product?
- If your competitors’ business with the similar product are running well and worse are growing, then you have a severe problem with your marketing mix. ST: immediately fix your marketing mix.
- If your competitors are also following you and having a declining business, then this is time for you and your dear neighbours to wake up. The market no more needs that particular product. Probably new technology has arrived and people are interested in that. ST: Just stop producing the old thing and start producing the new one. example: VCR/VCP vs VCD/DVD, Film Camera vs. Digital Camera, Tape vs. MP3
2. Look at the overall economy: What is happening to your customers’ pockets?
- May be your customers’ income decreased but your product’s price didn’t. Hence, simple micro-economic theory – Less Demand for your Product. ST: Balance your prices with the market demand
- May be your customers’ have a higher demand for something else, which now sells at a higher price, or which they now need in a greater quantity and your product is a luxurious one for them to easily de-prioritize. Hence, budget for your product is now being allocated for purchasing something else. ST: Balance your prices and/or quantity with your customers’ demand example: food vs amusement park tickets. Bachelor’s need vs. family need
3. Look at the organization: Is everything alright?
- If you find no problem in the above mentioned areas, immediately assess your organization’s management capabilities
- Are you managing your money well?
- Are you managing your talented employees well?
- Are you managing your marketing and sales strategies well?
- Do you have a business focus?
- Do you have your defined targets and strategy to achieve those?
- ST: For those questions that you answer “NO” immediately start working to making it “YES”
(To Be Continued)