Small business optimism took a dip recently with the NFIB reporting the August index at 91.2, down 2.5 points from the month before. Expectations for higher sales also dropped 9 percent which drove the overall declines in optimism. Still questionable economics and the US election may have been factors in those declines but for small business owners, refocusing on what can be controlled is the most surefire way to drive business and control costs. Weakening economics and a potential slow down on spending means highlighting areas of the business that can increase sales, such as customer service and marketing as well as creating efficiencies and reducing operational costs where possible. Owners and managers of smaller organizations wear many hats but have a size advantage when it comes to pivoting and improving how the business is run.

Maximizing Each Customer Opportunity

Most small businesses depend on customers to generate revenue. Whether it’s a high volume operation or a singular type transaction, small businesses must look at each customer as an opportunity to maximize sales and build brand presence. Owners and managers can take a closer look at the actual customer service process of the business and identify opportunities to increase the transaction and elevate the experience for the customer. Some strategies for driving the customer experience:

Developing customer service processes and policies from the customer’s point of view

Increasing interaction between frontline staff and customers

Optimizing store or location layouts for better customer access

Improving product or service assortments to cater better to the individual and community

For small businesses, revenue starts with customers and if the potential for reduction in traffic exists, owners and managers must level up the customer service the business provides to maximize each of those interactions in terms of sales and potential marketing.

Amp Up the Marketing Machine

With low expectations for increased sales within the small business community, increasing marketing efforts is the most effective way to turn the tide on slowing traffic and declining sales. For small businesses, marketing resources may not be as great as bigger outfits but with social media engagement and word of mouth marketing, grassroots marketing tools exist that are low to no cost and only require time and effort.

Social media marketing and engagement – content posting and user engagement can drive brand presence on social media networks

Word of Mouth Marketing – Satisfied customers are likely to tell peers of their experiences and using encouraging marketing messages can increase WOM marketing as well as public reviews

A quieting business climate means small businesses must make the most noise possible. Slowing traffic is not the time to pull back on marketing efforts but to actually increase opportunities for brand presence and penetration.

Driving Through Development

Hiring and training are also big challenges for small businesses as many openings among frontline teams remain unfilled. The potential for gaps in service and quality has shifted priority to existing staff and increasing their productivity and efficiency. Upskilling is the fastest method to increase individual ability and reduce the potential for service gaps. Online and self paced type training platforms offer the most cost effective way to upskill individuals. Some benefits to individual development are:

Better communication skill which will positively impact customer experiences

Increase organizational ability which drives efficiency and accuracy

Expanding job specific skills that create efficiencies and reduce costs for the business.

Ongoing development is also a major contributor to high job satisfaction, longer term employment, reduced attrition and increased individual ownership of the business.

The Bottom Line

Small business plays such a crucial role in the ecosystem of many global economies and in certain ways, their output and mindset could influence the condition of the economy as a whole. In the US, optimism in small business is declining which could be a tell-tale sign of things to come but in reality, small business owners and managers have more control over the citation then their larger counterparts. Focusing on operational aspects of the business can drive sales and control costs during uncertain economic times. The actions of small businesses have a greater effect on consumer mindset than do big box brands which deliver distinct advantages when it comes to the key revenue generating aspect of the business. Small businesses can also optimize and streamline operations much faster and to a greater degree than bigger businesses and can realize efficiencies and cost savings at a faster rate. In spite of the negative ‘sentiment’ within the consumer world, small businesses can quickly turn things around and take advantage of the situation, instead of being a victim of it.