When Change is Necessary

Like a lot of loyal consumers, I am not a fan of unnecessary change when I shop at my favourite stores or visit regular service providers. I enjoy the comfort and convenience of knowing where things are, that I can count on the products and services that I am looking for being available when I need them, and the consistent quality of service by staff that I have come to know. But make no mistake; I only remain a loyal customer, if that same enterprise that I so enjoy doing business with does make appropriate changes when they are necessary.

All too frequently, many business owners get much more comfortable with the way they do business than they do with the amount of business they are doing. They may not even notice that business is dropping off until it starts creating a cash flow problem for them, and they often look at that as a simple marketing problem. Unfortunately, because their cash flow has decreased, they may also be reluctant to put money into marketing at this time. That might not actually be a bad thing, because without doing some business analysis and planning first, marketing at this point could simply mean just throwing good money away. A better plan would be to examine their financials, scrutinize their business management strategies, and re-discover their business market before building an effective new plan that includes a refreshed marketing strategy.

A good marketing strategy starts with good data. Good data comes from studying and understanding the market environment that you are working in. While you may have been running your business in a manner that was successful in the past, things may have been happening around you that have changed the business landscape, and with it, your chances of success. It's important to know what those things are, and their impacts, in order to make the necessary changes to your business to keep your customers coming back, and increase your bottom line.

Change is one of the few things that we can count on in life, and in business it is no different. The economy changes, trends change, your customers' needs change as they age and enter different phases of their lives. The infrastructure of our communities changes, as does the political will of those that manage those communities. Competition changes, technology changes, and community demographics change. So, the only remaining thing to determine is whether it's time for you to change the way you do business in response to these changes.

Although making unnecessary changes can be the kiss of death for successful businesses, not recognizing when it is time to make necessary changes can be just as deadly. Market research shouldn't stop when you finish your business plan and launch your business – that's when it should start in earnest. Research, analyze, and act – these are the rudiments of a successful business model.

Terri Plaxton Smith is the business consultant for the Greater Barrie Business Enterprise Centre, 24 Maple Ave., downtown Barrie. For information and assistance, call (705)720-2445. Watch for our column in the Huronia Business Times each month.