Survive and Thrive
A Discussion on Maintaining a Successful Business in These Trying Times
Edited by Caroline Kennedy -- Gifts and Dec, 3/1/2009 12:00:00 AM
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Bring together a group of retailers, vendors and sales representatives to discuss how the current economic climate is affecting their businesses and you get a very lively exchange. That's what Gifts & Decorative Accessories and World Market Center Las Vegas did.
We all sat down together at the recent Las Vegas Market, with the purpose of bringing out some of the common problems and to share ideas for possible solutions.
After a general question got the three-hour discussion started, the conversation progressed organically to address many topics, which brought out key points to help businesses not just survive but thrive. Following are some highlights. The full discussion can be found here.
Love What You Do and Sell
One of the first points to come out was how having an underlying passion for what they do and sell helps to drive them and their businesses. "We have found that we sell best what we love," remarked Fitz Sazama. "Doing what you love is the most important thing."
Added David Moses, "Independent retailers have a unique advantage over the big chains, big boxes; [they] are so much more able to focus on what they love ... I was struck at the show in Atlanta by how many customers [when asked] had a strong holiday season. ... One of the retailers said it was the best holiday season they'd had in 10 years. I was floored; I asked, 'How did you do it?' They were kind of the last man standing and stuck to their guns in terms of customer service and what they were passionate about and they are succeeding."
Get Back to Basics
Several of the retailers emphasized the benefits of what Rhonda Strachan noted as "a return to basics. That old thing where you have people that you know and you buy those service and goods from somebody in your community who actually remembers your name." These have long been the strengths of the smaller independent retailer.
"We've started really stressing in [all our marketing] about ... buying local. The money going to the big box retailers is going out of state. ... If we keep two or three people working, they will go to the local grocery store and to the local restaurant; we all begin to prosper off of that ... and take care of our community," added Edward Vanegas.
"We, too, have gone back to basics," said Helen Edell, who had just finished downsizing her store from 2,000 sq. ft. to 1,400 sq. ft. "We're back to warm and cozy. ... and in addition, we gave back to the community. We donated all during fourth quarter, and those people who stood on the board of those organizations, they're the ones who came in during the fourth quarter to give back to me. So there is that one-on-one with the community."
Embrace the Internet
"If you don't embrace the Internet in today's market with all your heart, you're missing a lot of money," advised Elizabeth Bighorse, but cautioned that a website should be done well or not at all. "Now is the time to do it and do it really, really well. Hire the best that you can. Get referrals, recommendations, do your homework." And if you don't know how to build a website, she noted, "There's a lot of unemployed people who know these things."
Even if you don't use your website for e-commerce, having an Internet presence is an important marketing tool. "The Internet is actually the least expensive way to communicate with your market," advised Ted Teele. "It's much more expensive to do mail campaigns or to advertise in newspapers. Get with the program if you don't have a website because that's how you're going to get people to come into your store and make you more relevant" especially to the next generations moving up with the buying power.
Be Nimble, Be Creative
Darwin said the key to survival as a species is adaptability, as both David Moses and Ted Teele pointed out. Independent retailers, by being relatively small and independent, are better positioned than their bigger box competition to do just that in response to changing circumstances. They can be flexible and change plans, merchandise or even business direction accordingly.
Being creative and implementing "out of the box" ideas also gives retailers an edge and helps to make their business stand out, especially when the ideas are tied to their community and charities. "I read the local paper and there was a gentleman who had a rare disease. He was a cowboy," shared Joe Santoro. "So, I found out who [he] was — it's a small community — and had a benefit for [him]. And it was such an outreach to the community. I supplied food, and had a percentage off the store. I even had a contest for the best cowboy hat! I create such loyalty doing that."
Know Your Financials
But most important of all, the bottom line is the bottom line. Rick Contino stressed to everyone present the key point: "I think the biggest issue facing us is obviously we have to be very literate in our finance and know exactly where you are with your inventory."
Elizabeth Bighorse supported his statement, "People need to be so in touch with their financials. ... So many people are running their businesses blind. And the economy needs to be about figuring out where you're making your money and doing it better."
Also having a business plan that you refer to often is a key element, like a roadmap, to track how your business is doing. And it is not a static thing. "We're looking at our business plan regularly," noted David Moses, "to see if what we planned is being achieved and if not, why? What do we need to adjust? It's not like years ago, you came up with a plan and just kind of kept it."
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