Business

<< Previous   of   Next >> (click to enlarge) Pam Hoelzle is an Edmonds-based business coach.   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Monday, January 5, 2009 Survival tips for small firms By Yoshiaki Nohara Herald Writer EDMONDS -- The new year has begun. The recession continues. News reports indicate more challenges are ahead for businesses. Will 2009 be a year of uncertainty and fears for business owners in Snohomish County? Absolutely not, said Pam Hoelzle, a business coach in Edmonds. She said it's important to remember that some businesses are doing well despite the economic downturn. And the economic crisis not only brings challenges, but also opportunities for local businesses. Hoelzle has owned a business consulting firm called InspireU since 2004. Most of her clients are small businesses, she said. "I agree it's a challenging time, but perspective makes a difference," she said. Hoelzle had the following advice for local business owners. Question: What do struggling small-business owners need to do first? Answer: First, you need to diagnose what's hurting your business. Slower business gives you time to analyze your business in detail. Look for deficiencies in three areas: operation, financial and marketing. The quickest way to diagnose your business is to talk to your clients. Once you identify the problem, you should be able to find out ways to deal with it. Q: How should a small-business owner build, maintain and extend a customer base? A: You need to "galvanize the tribe." That means engaging your core customers to brand your business. Blogs and social media such as Facebook on the Internet could be a great tool to interact with existing and potential customers. The key is to keep dialogue with them. Q: As the economic environment changes quickly, what does a business owner need to keep in mind to adapt to a new era? A: After identifying challenges your business is facing, you need to focus on building a dream team to improve your business. That doesn't always mean cutting existing employees and hiring new ones. Look for creative ways to improve your team. There may be a low-cost training program to let your employees learn new skills. You can also contract with experts part-time to diversify the team. People matter. Q: What do small-business owners do to help survive the recession? A: You need to focus on value and innovation. Look for ways to enhance your service as a whole. Just cutting prices isn't the answer. You want to provide your service in a unique way that makes competition irrelevant. Q: Many experts say that the recession would be over in mid-2009. How should small-business owners plan for the long-term future? A: After identifying your new business model, you want to make sure that your business would be able to sustain profitability in the long run. Look at various elements such as prices, profit margins, cash flow and net income. Keep an eye open for new opportunities. Q: What kind of advice do you give to business owners who find it difficult to stay positive in this tough environment? A: It takes a mental discipline to stay positive. But it does make a difference. If a car racer focuses on the wall, he will likely hit it. So, stay on the course and look for ways to change and evolve. The definition of insanity is doing the same thing over and over and expecting a different result. Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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