Have You Reinvented Your Business Lately?

Excerpts from an article by Rieva Lesonsky

What has it taken to keep your small business thriving—or even just surviving—for the past four years since the U.S. economy crashed? For most businesses, it’s been an ongoing process of reinvention.

A recent survey from Citibank found the majority (53 percent) of small business owners have stayed afloat or competitive by reinventing their businesses.

Here’s what Citibank found small business owners are doing to reinvent their businesses:

• 47 percent overhauled their product or service offerings
• 24 percent revamped their infrastructure, such as technology or staffing
• 18 percent revamped their sales and marketing
• 7 percent cut prices or took less profit
• 3 percent relocated their businesses

Businesses have learned a lot about reinvention. One company, started in early 2008 just before the economy crashed, had a well-thought-out business plan targeting one type of market. A few months later, though, their big clients lost their budgets and couldn’t commit to contracts. Time to reinvent. They turned on a dime and have kept their business thriving as a custom content provider for more than four years. There have been lots of large and small reinventions along the way–and they’re not done yet.

The pace of reinvention truly never lets up. In fact, with 38 percent of small business owners in the Citibank survey describing competition in today’s business environment as “extremely intense,” entrepreneurs were taking other steps to stay competitive:

• 88 percent stayed up-to-date and current about their industry
• 70 percent increased time spent working with customers
• 67 percent updated or upgraded computer systems
• 52 percent used the internet and social media more
• 51 percent built a network of suppliers and partner companies

To make these changes happen, 38 percent are increasing capital investments into inventory, facilities and computer equipment, with 75 percent using profits and 62 percent using personal savings to do so. Small business owners’ reinvention process isn’t over, either. In the next 12 months, 50 percent of small business owners say they plan to introduce new products or services.

Who is that 12 percent that aren’t keeping up-to-date on their industry? The 50 percent who aren’t introducing new products or services? The 33 percent who aren’t upgrading their computers? These entrepreneurs could be making a big mistake.

In the old days, maybe you could rest on your laurels and feel confident in your hard-won knowledge. Today, you’ve got to keep earning that knowledge over and over again. If you’re not reinventing yourself, not only are you not keeping up—you’re falling behind.

Are You Ready To Reinvent Your Business? AM&T has the Expertise and Tools to Help. Call Jim Cunningham at 607-725-1225