Many small-business owners are under the impression that today's economy is inhibiting the growth of their firms and they are supposed to sit on their hands until the nation gets back up on its feet. Grant Cardone, star of the reality show Turnaround King, and author of Sell or Be Sold, couldn't disagree more.
He believes that small firm owners need to focus on growth and continue to look for ways to expand their companies, even when the so-called experts say it's smart to wait out the economic turmoil. Cardone sat down with Inc. magazine and talked about how small-business owners don't have to wait, they can begin thriving now.
Adjust to the times
Small-business owners who are waiting around for the economy to turnaround may find that when they are attempting to enact growth strategies they are too late. Cardone recommends having a company-wide meeting and getting everyone's input on how the firm can jumpstart the business and put everyone on the same page toward becoming a prosperous business once again.
"This is not a bad economy, it's the economy, and what you make of it is what you're going to get out of it," Cardone told the magazine. "We're not going back to the days of free money. Adjust to that way of thinking and you'll be better prepared."
Don't be afraid to increase prices
Any business that has a quality product will have customers no matter what, and raising prices during tough times is a way to create more revenue. Making more money per transaction can give small-business owners more options, such as running their finances through a budgeting planning tool to gain insights on how much available cash flow they will have for six to 12 months down the road.
"Everyone thinks people are more price sensitive during difficult times," Cardone told the magazine. "It's not true. People focus on value, not price. They still spend money, but that money gravitates toward the best value not the lowest price."
Forget cost cutting
Spending time on trimming the fat off the business can only mean firm owners are taking time away from opportunities to turn a higher profit. Too many firm make the mistake of cutting costs instead of focusing on expenses, according to Cardone. All of their energy should be geared toward putting the business in a position to gain more customers and bring in cash flow.
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