Cover Story
Untitled Page
Business advice from Timothy Peters, continued ...
Employee
costs are often the first place businesses make cuts; our unemployment
rate today testifies to that fact. If possible, cut personnel costs by
reducing hours and benefits, but not people. These employees are your
investment when business returns.
Stay very close to your
customers and suppliers. Although you may be ordering less from
suppliers and your customers may not purchase as much, these
relationships are key to your future. One small business owner stayed
open seven days a week, even though his weekends were not as
profitable. His fixed costs were not greatly affected, but the service
to his customers that came on the weekend was key to his 40-plus years
in business. His business was there for them while some of his
competitors had closed. He also paid more attention when former major
customers made smaller orders. Even though these sales weren’t as
profitable, he conveyed to his customers that their business was still
important.
This same owner, although in a business not
typically Internet focused, has rethought this strategy and is now
building a Web site. He sees a much larger non-geographic customer base
and recognizes that even his elderly customers are more frequently
shopping on the Internet.
Let’s be honest: We need to be
realistic about running a small business in a very focused manner. This
is a challenging time to stay in business. However, it is challenging
for a small business owner to start in the first place. Recall that
dream, review your present situation and make smart moves for the
future that you envision.
<<< Previous page
Andrew J. Policano | Anil Puri | Esmael Adibi
Abe Helou | Linda A. Livingstone | Timothy Peters
Ahmad Hosseini | James G. Ellis
BACK TO MAIN PAGE
Business advice from Timothy Peters, continued ...
Employee costs are often the first place businesses make cuts; our unemployment rate today testifies to that fact. If possible, cut personnel costs by reducing hours and benefits, but not people. These employees are your investment when business returns.
Stay very close to your customers and suppliers. Although you may be ordering less from suppliers and your customers may not purchase as much, these relationships are key to your future. One small business owner stayed open seven days a week, even though his weekends were not as profitable. His fixed costs were not greatly affected, but the service to his customers that came on the weekend was key to his 40-plus years in business. His business was there for them while some of his competitors had closed. He also paid more attention when former major customers made smaller orders. Even though these sales weren’t as profitable, he conveyed to his customers that their business was still important.
This same owner, although in a business not typically Internet focused, has rethought this strategy and is now building a Web site. He sees a much larger non-geographic customer base and recognizes that even his elderly customers are more frequently shopping on the Internet.
Let’s be honest: We need to be realistic about running a small business in a very focused manner. This is a challenging time to stay in business. However, it is challenging for a small business owner to start in the first place. Recall that dream, review your present situation and make smart moves for the future that you envision.
<<< Previous page
Andrew J. Policano | Anil Puri | Esmael Adibi
Abe Helou | Linda A. Livingstone | Timothy Peters
Ahmad Hosseini | James G. Ellis
BACK TO MAIN PAGE
Andrew J. Policano | Anil Puri | Esmael Adibi
Abe Helou | Linda A. Livingstone | Timothy Peters
Ahmad Hosseini | James G. Ellis
BACK TO MAIN PAGE
