Not all struggling small businesses are doomed –far
from it, in fact. Think back to 2009. The U.S. economy was anemic. Companies
were slowly clawing their way back from the Great Recession. Around that time,
stories of powerful rebounds were few and far between.
Laura Vinroot Poole, the owner of Capitol had
experienced 10 years of strong, consistent, double-digit growth. Poole had
invested heavily in a new million-dollar storefront, plus additional millions in
inventory and a team of well-trained associates. Was this how she would close
the chapter on her business?
Absolutely not. Like many entrepreneurs and business
leaders, Poole rallied, using those challenges and the potential for failure to
reinvent herself and grow her company anew. Here’s how.
RETHINK
YOUR BUSINESS MODEL
As many retail establishments experience, Poole’s
Capitol struggled with customer traffic during the post-recession economy. So
Poole went to her customers. When the brinks-and-mortar boutique retail model
no longer made sense, Capitol created a new customer experience that stayed
true to the brand. Poole had her team make home appointments with their
customers, taking clothing, shoes, and jewelry straight to them. Today, six
years later, a majority of Capital’s sales still take place in customers’
closets.
FIND
FRESH WAYS TO EXPAND YOUR MARKET
“Business was tough because I was stuck in the walls
of a storefront. I needed more eyes on my inventory”, Poole says. With a
business partner, she cofounded House Account, a highly curated shopping app.
Initially, the partnership – between a luxury retailer and a tech company --
was a stretch for Poole. However, she says, it ultimately “moved her closer to
her market”. House Account continues to do well; customers can shop in over 450
stores directly from the app.
Poole not only opened up the market for her store
but also created a platform to help other business owners expand their markets
as well. Don’t limit yourself by your own knowledge base and expertise when
your back is against a wall. Find partners who can help you implement the new
strategy that makes the most sense, not the one that’s easiest to execute.
Chandra Johnson, owner and creative director of SoCo
Gallery, a contemporary art gallery that specializes in photography, leads a
three-person virtual team catering to clients across the country.
Communication—consistent, clear, and proactive – is essential to any small
business, especially those that rely on heavily on remote workers, as Johnson’s
typically does.
When a client became upset due to a miscommunication
over the price of an artwork, Johnson did what most business owners would do:
She blamed herself. But the experience helped her realize that the incident
offered a learning opportunity, “She recalls, “I can use my mistakes and
failures as an opportunity to learn and adjust.”
When your business faces setbacks and you’re in
damage-control mode, figuring out a way to grow can be the furthest thing from
your mind. But those periods can be some of the most fruitful. After
regrouping, Johnson and her staff identified how they could streamline their
communications and educate their clients more proactively.
”I grow and the team grows through failure,” Johnson
says. “Facing my fears is a challenge, and I love a challenge. Getting over the
hurdles is empowering and fuels my personal and professional growth.” And that
can’t happen if a leader tries to sort through challenges alone.
USE
YOUR PASSION TO DIFFERENTIAT YOUR BUSINESS
Over the last several years, the fitness and
wellness markets have seen an array of new techniques and approaches, making it
arguably harder than ever for companies to stand out. Whenever your business
faces mounting competition in an evolving space, it’s important to remind
yourself where your passion lies.
In that highly saturated fitness market,
mother-daughter team Liz Hilliard and Clary Hilliard Gray, owners of Hilliard
Studio Method, a boutique Pilates barre studio, knew their approach needed to
be unique – and for them, that meant tapping into their personal expertise and
passion. After years of cultivating a loyal client base for her personal
training business and traveling the country honing her method, Liz Hilliard
felt ready to open her own studio.
Competition made that difficult. “We knew at that
point that we could either quit, or put our heads down and work harder,”
Hilliard said. They “immediately went into overdrive,” accelerating their
studio opening and showcasing what was unique about their workout – and themselves,
as the experts behind it.
They understood that their professional experience
and personalities – their own passion and power as individuals – were just as
important as the training they offered; a workout that incorporates weights,
resistance bands, and weighted balls and gliders with floor and barre work to
sculpt and tone.
When first-time clients arrive at the studio, HSM’s
team explains what it is, then offers clients a free class to experience the
Hilliard difference. The unique, personal approach has paid off; they’ve grown
their business to include over 40 weekly classes and a series of downloadable
workout video. Hilliard Studio Method was recently featured
in Self for its exceptional core workout, and Hilliard and Gray have
opened their second business, HSM Core, Megaformer studio.
Economic struggles, competition, and mistakes can
all put small business owners on the defensive, struggling merely to get things
back to where they were before things went awry. But setbacks can also be
rocket fuel for a company’s transformation. It’s all a matter of how you
approach the setback.
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