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Don't skimp on customer service in tough times

22 Jul 2008

Small businesses differentiate themselves through specialisation and customer service, and in tough economic times, they can't afford to sacrifice either. In fact, small-business owners should focus their resources on those areas.

It's no secret that the economy is not in the best shape ever. A trip to the petrol pump is a reminder that costs are more costly today than they were a couple of years ago. What strategies should small-business owners take in order to maintain a healthy business?

The strengths of small business are specialisation and customer service. As a small-business owner, you have a unique expertise, a passion for something that is what gets you out of bed and to your work every day. If you have moved out of that area of expertise and passion, now is the time to focus your efforts there. That may seem counterintuitive.

You may think that in a difficult economy, you should cast a wider net and be willing to be more things to more customers. The problem with that approach is that there is a finite quantity of you, so the wider the variety of work you do, the more you dilute your ability to do what you are uniquely qualified to do. Streamline your business operations by culling out activities, products (and customers) that are high cost and low margin.

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