|
Unless you’ve been living in a sensory deprivation tank, you know the global economy has been pretty rocky for the last eight months. Whether it’s the financial markets taking us on a rollercoaster ride, dismal unemployment numbers or just an unrelenting uncertainty about what comes next, there’s no escaping the reality that we’re living in very “interesting times.”
Now that I’ve spelled out the bad news, can we please accentuate the positive? Because I firmly believe that small business has a big edge in this economy.
Intuit’s recently released Future of Small Business Report offers a good glimpse as to why savvy small businesses will weather the downturn. In a word: Innovation. The report says that “small businesses are natural innovators,” and goes on to note:
Innovation is common across the entire small business sector, regardless of size, industry or geographic location. Driven by their passion for their business, concern for their customers and nonstop market pressures, many small business owners innovate on a continuous basis to survive and thrive.
Sound familiar? If not, what about this:
Rather than calling it innovation, [small business owners] simply describe what they do and the results they’re looking for. Words such as “tweak,” “adjust” “improve” and “change” roll off their tongue. They talk about experimenting, improvising and trying new ideas.
I’m constantly reworking my marketing materials, or looking for new business niches or different ways to package my consulting services. And Intuit’s correct—I don’t think of it as innovation, but I really should. And it’s not surprising that we’re good at this. Unlike mid-sized and large companies, we don’t have to move mountains to make a change. We’re positioned to take advantage of changing market conditions and to seize new opportunities.
If our capacity and propensity for innovation are one reason that small businesses have an edge in this economy, it’s certainly not the only one. I’ve identified at least four other major reasons why we’ve got a good shot at weathering the downturn:
1. Networks. To succeed in business, you have to build a solid network and understand how to nurture it. After all, without our networks, finding clients and projects would be even harder than it already is.
Too often, we take for granted our ability to do this well. I regularly connect people who share similar interests or may be natural business partners, pass along project or job leads, and touch base with colleagues just to say hello and see whether there’s anything I can do to help. It’s my Good Karma rule: Do the right thing just because, and eventually someone else will do the same for you.
2. Competition. It’s always there, so why worry about it now? I’ve always believed that competition is good for business. It forces us to hone our value proposition and competitive advantages, and requires us to constantly tend to our networks, figure out what our customers and clients want (not what we can do for them), and build up our business pipelines.
While some people are concerned that an influx of out-of-work communicators into the consulting marketplace will make it just that much harder to find business, my perspective is that my competitive advantages are as strong as ever. Why? Because I’m not just a communication consultant—I’m also a business owner. Don’t you think that gives you an edge?
3. Nimbleness. While some big companies seem to have adaptability in their DNA, most large organizations have difficulty changing directions (witness the problems at General Motors). Small businesses and independent consultants typically don’t have a big pool of salaried or hourly employees that need to be put to good use, large capital investments, or shareholders tugging them in multiple directions. What this means in a downturn is that small businesses are often able to shift strategies more quickly, and are less afraid of the consequences of something not working out. In other words, we can more easily test out new ideas and strategies and figure which ones will work.
4. Flexibility. Along with nimbleness comes flexibility. Staffing is a key area. While larger organizations have built-in teams, as small consultancies and solopreneurs, we can expand and contract more easily to build the right mix of skills and expertise to tackle a given project.
Finally, there’s an intangible aspect to what makes businesses succeed. Some studies have called it the dumb luck factor, but I prefer to think of it as smart luck. I really believe that you create your own opportunities by embracing innovation, nurturing your networks, and taking the time to recognize what’s possible and prepare your business for the next wave.
Daria Steigman runs Steigman Communications LLC, and advises clients on business and communication strategy and public affairs. She also blogs about business, entrepreneurship and social media on her Independent Thinking blog. She can be reached at +1 202.244.7651 or
. |
