I’ve had many small business owners tell me that they like being small and don’t want to grow. Sound familiar? I understand. I own a small business too. But, businesses are organic. Like animals, plants, and people, the alternative to growth is death! It is as simple as that.
Several years ago, I had a client in the plastics molding business who would call me in a panic every three years after he lost a major account. “Come in, I need some new business, a large costly machine is idle!” was his cry. So, I’d meet with him and we’d plan and execute several publicity releases and generate the sales leads and RFQs (requests for quotes) he needed to land another contract. He would ink a new deal and then our relationship was over for another three years. He didn’t want to grow.
What he should have done was a consistent, well-planned publicity program of just a few product and service news releases per year and he would have never been in panic mode. What’s more, because he “needed” the business, he was willing to accept lower profit margins. Ironically, a modest publicity program would have paid for itself by maintaining higher profit margins. It is easier to say no to lower margins when you have consistent sales opportunities.
If you have a small business and want to maintain the best profit margins, remember: the alternative to growth is death! The key, therefore, is slow growth so you can maintain your profitability. This can be achieved with a very, very modest budget and no advertising.
© 2014 Steven M. Stroum