Leading Entrepreneurship

In times like these, some of us thrive, others of us panic. To be the entrepreneur that thrives, you need to refocus on the best strategy possible for your firm, given the environment it operates in.

When a turtle is on its back, it doesn’t always have to die. It actually has choices. It can just wait it out, but it could also use one of three options to turn itself right. It could spin its head until the shell turns, swivel the limbs on one side to tip the the shell back, or use a combination of the head and limbs on one side. Each of these strategies is contingent on (1) a choice and (2) a focused strategy. If the turtle twitches all of its limbs and its head, nothing will happen. The focused strategy is key.

The issue for us, as business owners is that we are not turtles – we control a bunch more moving parts. But these parts can be labeled by one of three currently outstanding questions:

1. What will my customers do?
2. What will my competition do?
3. What will I be able to do?

In a tough economy, customers will either buy less/delay purchases or stop buying/consider switching providers. Which scenario are you seeing?

Regarding competition, they will either commit additional resources in an attempt to compete more efficiently or maintain status quo/decrease resources. Which scenario are you seeing?

Regarding your firm, you probably have either (1) a large cash reserve, (2) a broad base of customers, or (3) positioning as the expert in your niche.

So – as a strategy:

If you have large cash reserves, your clients are buying less/delaying purchases and your competition is maintaining/reducing resources to acquire customers, then you have the option to wait and see. However, if you start noticing your competition increasing resources to build their market share, then you have little choice other than to follow suit.

If you have a large client base already, those clients have stopped buying/considering switching and your competition is maintaining/reducing resources to acquire customers, then focus on service and keeping those customers put.

If you have neither a large client base nor enough resources to compete for growth, but have a strong postition in the market, then you need to acquire customers more effectively.

I know what you are thinking: OK, I’ve got a good idea of where I’m at, but how do I move forward? Over the next three posts, I’ll address just that issue… so stay tuned.