Have you ever heard the song, "Party Like A Rock Star" by Shop Boyz? I ask that question, because it has become the mantra of many of America's businesses. For years American Businesses including Bankers have been partying like a rock star. Many seemingly dancing to the rhythm of more is better. Mortgage companies offering not 100% financing, but mortgages up to 110%, following the lead of some British mortgage lenders. Like champagne bubbly over the glass that seeks to contain it. The only problem was, that the rhythm the businesses and bankers were dancing to slowed downed and when the dancing slowed, the partners weren't so comfortable with who they were doing business with.
The rhythm was the economy, and the beat that sustained it, was consumer spending. The beat was no longer the melodic percussion that had the American consumer spending lockstep with the the once easiness of getting more credit from their lenders. The home that many Americans lived in was nothing more than a giant ATM, and anytime the homeowner wanted or needed money, they simply refinanced. Soon, more than a few homeowners found themselves overextended trying to keep up with the American dream. The American Dream, the gainful employment with the frequent raises, the affordable home and extension of credit that came with it, the automobile that was within reach of any family with reasonable credit the good schools and affordable healthcare and the expectation of peace and security where you lived, traveled and vacation, all came to make for the American Dream.
It had always been manageable before, but this time was different and many Americans felt uncomfortable dancing to such a slow pace. As the American economy slowed even more, businesses and banks began cutting back, first with layoffs and tougher requirements for new loans and credit. Many could no longer afford their homes and many more still owed more on their homes than it was worth. The party continued for those who had access to cash and credit, and they continued to prosper in spite of what was going on around them. As more and more grew weary of the stress of just trying to keep up, many simply stopped dancing, that is, many Americans simply stopped participating in the American Economy.
There is nothing wrong with the rhythm of the music, it's just that some businesses have had a difficult time finding there pulse. Your pulse is that "something," that differentiates you from your competitor. If you have lost your pulse, then you are out of step with the beat. More specifically, you are out of touch with the consumers. Businesses have to let the consumers know, what is it that makes me want to do business with you? Why should I shop with you? What are you offering, that I can't purchase elsewhere? Essentially, the businesses have to not only tell the consumer why they should be doing business with them, but take them by the hand, so to speak, and show the consumer, the benefits of doing business of doing business with you. The beat which is consumer spending, is the pulse of the U.S. economy. It's not hard to dance to, but it helps if you can stay within the rhythm of the beat. Businesses that can change their marketing course quickly, have no problem keeping up with the beat, and those that have difficulty adjusting to the beat, struggle until they learn to adapt, or soon perish. American Conglomerates can learn a great deal from small businesses.
Many small businesses start with nothing and when you come from nothing, that is, start with nothing and control your direction and marketing of your enterprise, a change in rhythm, beat or pulse within the economy, doesn't shock you, because you are lean and nimble and able to adjust quickly to the rhythm of the economy. Your fixed costs are within your financial abilities or prepaid business quarters in advance. The key to business is to seek profitability early on, so that when the times are good, you can prepay your fix costs, and better still, try to avoid excessive fix costs, as much as possible. If you have very little fix costs, you can continue to grow your business and more importantly, you can continue to invest in yourself, your staff over the both the prosperous times and the lean periods.
If you don't know what your pulse is, ask. Ask your customers what they like about doing business with you. You might even have to give them some incentive just to take your short survey or a discount coupon on a future purchase for taking the time to take your short survey. If, you don't know what your customer wants or needs, or why they do business with you, you may not have them as a customer too long, because some business out there, will find out what the customer wants or needs, and make the necessary incentives and marketing to fill that customer's need or want. Customers can be demanding as their means become threaten by their perception of the economy. Customers take their time to do their research now and compare what their getting for their hard earned dollars and loyalty becomes a casualty of "what's in it for me!"
Those businesses and lending institutions who can meet the needs and wants of ever so demanding consumers will have found their pulses, no matter what the rhythm of the economy is. The beat goes on for those who know how to fulfill the demands of those who know what they want, and where to go to get what they need. You have to position your business to be that "go to" service or product, that the consumer doesn't think twice about purchasing from. You want your service or product to become as infectious as the song, "Party Like A Rockstar." You may not like the song, the lyrics, the rhythm or the pulse of the beat, but enough people did and it made millions for the group, Shop Boyz.
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