We hear and read about how the business landscape has changed – that post recession it’s a different marketplace. Like any other information you get, there is some truth to this and some hype. As a business owner, entrepreneur or an aspiring entrepreneur, separating the truth from the hype is difficult, and important. It is also essential, however, to take an objective and dispassionate view of the marketplace as it exists for you and your business in 2011.

We suggest that you ask yourself these questions first – before you make assumptions and take action on a premise rather than a reality:

1. Has the marketplace really changed for you/your business?
2. If so, how (specifically)? For example:
   1. Is the way of delivering products or services changed? (Think about what Netflix did to Blockbuster; Amazon to Barnes and Nobel)
   2. Is your product or service being replaced by new alternatives (will the iPad and iPhone – and other similar technologies – decrease the purchase of laptop computers?)
   3. Has your primary market changed? (If you provide products and services to cities and municipalities, what is the impact of their deteriorating financial position on your business?)
   4. Has the use of social media changed the way you market your product and services and compete?
   5. Has your competition changed – either their business model or are you facing new and emerging competitors?
   6. Do you need to change your product, service, or business model to stay in business, and to grow your business?
   7. Or is the market essentially unchanged, and your challenge is to insure that you can manage growth.

While these are critical questions (because you do not want to solve the wrong problem), we find that they are often overlooked as managers and owners keep their nose to the grindstone to get work done. A caution though for our readers: you have neither the resources nor the time to assume false marketplace assumptions. Capital access will continue to be a challenge for small businesses in 2011. Expanding you business, hiring employees and other expansion strategies without the ability to pay for them through organic growth will be a challenge.

As you execute your plan for 2011, get the facts as they relate to your business. Forget the hype and assess the relevancy to your business. Taking for granted what is said in broad and general terms, at a minimum is distracting; at its worst, it can derail your business. Do your homework, understand the realities of your marketplace and act accordingly. In this current economy, we’ve seen in general, large organizations cut, many small businesses waiver and struggle to stay in business with some failing, and a few thoughtful and highly responsive businesses grow exponentially. We want you to be the latter.

In this week’s Quick Tips we will provide examples and ideas on how to better understand your marketplace.

Copyright 2011 Kubica and LaForest

This entry was posted on Monday, January 10th, 2011 at 5:13 am and is filed under Business Growth & Entrepreneurial Strategy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.