A common reality is that the main reason you enter a crisis is that you stray from the original path that was leading you to success. Sometimes, the most useful thing you can do is recall what you have forgotten while growing and developing your business.
To face the problems, disappointments and failures inevitable in work or business, you must continually ask: ‘What advantages do you have? What can you do better than everyone else? What has been the main reason for your success so far?’
Your success comes from just a few things
Remember that 80% of your results come from 20% of what you do. In other words, 80% of your profits come from 20% of your products and services; 80% of your productivity comes from 20% of your employees; 80% of your success comes from 20% of your actions, and so on. You need to examine what that 20% is whenever you face an unexpected business failure.
Begin with your area of expertise. Which customer group, market or product line are you focusing your time, attention and effort on? If you asked customers about your business and its focus, what would they say? The main reason for problems in your business often lies in wanting to grow and expand into areas that are not your strengths.
How are you different and formidable?
Your greatest responsibility is to identify and develop your distinctive strengths and competitive advantage.
What makes you different in a particular field is the key to business success. Can you offer customers something your competitors do not have? What can your business do for customers to make itself special? The principle is: If you have no competitive advantage, do not compete.
Your greatest responsibility is to identify and develop your distinctive strengths and competitive advantage, then focus your marketing and sales efforts in that area. What can you do for customers that no other company can? What is your “unique advantage”?
Every company must excel in one area. So what is your company's area? It is something you do well and something important and valuable to customers.
Each individual also has their own strengths. So what can you do better than your colleagues? Developing and drawing on your strengths is the key to getting through a crisis. Sometimes simply switching to what you truly do well can help you turn things around.
Protect your core values
Apply the “Forbidden City strategy” in your business. Imagine your business is a besieged imperial city. You must gradually retreat from the outer city to the inner city and finally to the heavily guarded imperial palace. Below are 8 key points for finding and protecting your core value.
1. Your fortress is the products and services most important to your growth and profit. If output falls, what will you retain to survive and keep succeeding in your current market?
2. Identify the key people in your business or organization. Which 20% of employees deliver 80% of your business results? Which banks, distributors, creditors, customers, etc. are critical to your success? What will you do immediately to ensure their loyalty and support?
3. What are your core marketing activities? What have you done to attract large numbers of potential customers? What do you need to do to focus more time and resources on those activities?
4. What is your most important sales channel? It is the process, people and method that deliver the greatest and most desired sales volume, revenue and cash flow. What is it, and what must you do to maximize its results?
5. Where are your profit centers? Which 20% of activities generate 80% of profit? What must you do immediately to strengthen those activities?
6. Who are your most promising customers? They are your most important customers: those who buy the most, pay most punctually and provide your largest income source. What must you do to ensure they stay with you during a crisis?
7. Think about your personal skills, qualities and character. What can you do all day that brings success and helps your business survive? How will you rearrange your time to spend more of each day on activities that contribute more to your business?
8. Finally, what are your business's key target areas? What specific goals must you achieve daily, weekly and monthly to make sales and earn profits? What are your strengths? Your weaknesses? What must you do to strengthen your strengths and address your weaknesses in the key target areas?
To overcome a crisis, it is essential to identify your main goal and focus your energy and resources where you have a competitive advantage.
Take action
1. Identify your most profitable products, services, and key activities, and focus your time and energy on them.
2. Identify customers, markets and sales methods, and devote 80% of your time and money to maximizing the results from them.
Collected.
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