Times are certainly tough, and many business leaders are scrambling for ways to survive as consumers are only now beginning to come back into the marketplace
As the wheels of commerce slowly accelerate, what can a business owner or organizational leader do? To answer that question, I will share a couple of stories of some real businesses in the Springfield area that are operated by friends.
Core value connection
In an increasingly electronic world with its emphasis on social media and networking, it might seem counterintuitive to open a business that hangs coupon/advertisements on doors. But that is exactly what Landon McCarter and Ryan Jennings did earlier this year with Door Deals. The company hangs full-color ads in specific Springfield-area neighborhoods. The door hangers are large and perforated into dollar-bill sized coupons that can be easily used by the recipients.
Launching a business based on old-school marketing principles might seem risky to some, but the business has been profitable. I first learned of Door Deals when talking to the owner of Amigo's Mexican Restaurant on Campbell Avenue near Bass Pro Shops. I had asked the owner what forms of marketing he had been using and he told me that Door Deals had been his best marketing tool - low-cost with a high rate of return within a very targeted geographical market.
How is a business like this successful in a recession? McCarter and Jennings focused on the core value that they provide. They recognized the need for this type of low-cost marketing along with the consumers' appetites for finding good deals. Understanding the core value of any business is absolutely critical in any business client. As Brett Curry of Springfield-based Curry Marketing said in his recent Guerrilla Marketing seminar, "Customers don't buy products or services; they buy value."
Building a successful business is seldom done with a single action. It is generally a series of actions all aligned under a common vision of the company's true value. The formal process of aligning these actions is known as strategic planning. Most organizations make the mistake of thinking that strategic planning is finding a path to move from where you are to where you want to be. This is why most strategic plans are obsolete as soon as they are written.
A real strategic plan does not set the actual path. Instead, it defines the value of the organization and sets the criteria for making decisions. Following these criteria offers clarity to those with the vision, but often looks counterintuitive to outsiders.
Individual ideas
Deb Belotti decided start a coffee shop, and she opened The Buzz in December 2008 at Republic Road and Fremont Avenue. Conventional wisdom showed that opening a coffee shop in south Springfield would be a folly.
The economy was failing and several nearby coffee shops already had closed. Furthermore, The Buzz didn't even follow the format of the value of typical coffee shops.
It doesn't serve blended ice drinks, and it closes early, at 3 p.m., on weekdays.
Still, The Buzz seems to be doing quite well. A few months ago, I met a colleague at the coffee shop and introduced him to Belotti. He surprised me by asking her whether she thought it was a good idea to open a coffee shop in the midst of a recession.
She looked at him with fire in her eye, pointed her finger at him and said, "You bet. Two reasons. First, it's mine. Second, try the carrot cake!"
We did. It was spectacular. The point here is that Deb knows that the value of her restaurant is good coffee accompanied with an energized atmosphere and great food. Her passion is to build on those recipes, and she provides great value to her customers.
If your business or organization is struggling, I can tell you that there is probably not any single action you can take that will turn it around.
The best thing to do is to find that core value of your business. (Hint: It is probably centered around the passions of those working within the organization.) This core value is who you are as a business and the reason your clients utilize you. The next step is to take every action you and your people can dream of to support and accent that value. Find ways to improve upon that value and to highlight it to potential and existing customers.
Times are tough, but they are not so tough that people can't recognize value. Whether we talking about friendly and tenacious service or about the years of effort gone into a carrot cake recipe, all decisions should be made with the organization's core value in mind. Companies whose leaders understand this will emerge from the recession, and any other challenge, stronger than ever.
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Don Harkey owns Galt Consulting LLC in Springfield, providing strategic planning for organizations in order to reduce costs, improve quality, and unleash their passion for success. He may be reached at donharkey@galtconsulting.com.
