In short: a weak market is a headwind everyone faces. With the wind behind you, results look similar; against it, preparation shows. Instead of blaming conditions, treat the headwind as your chance to pull ahead.
A lesson from golf
With a tailwind, a light tap sends the ball a long way, and beginners score close to experienced players. Turn the wind around and practice, technique and good habits show immediately. For the prepared, a headwind is an opportunity.
Why some businesses quietly decline
People like their comfort zone and resist change, but customers like novelty; the only constant about them is that they keep changing. Many businesses that did well for years slowly fade, and the biggest reason is usually a refusal to change.
Three things to do in a headwind
- Find the real cause of losses: is outlet A losing money for the same reason as outlet B? If you cannot tell, you cannot fix it.
- Don't rush to cut prices: sales may bounce briefly, but it is often an illusion, and prices stay down for good. Raising value beats lowering price.
- Use slow periods for training: when business slows is the best time to tidy up processes, train the team and improve systems.
People who spot opportunities invest; people who wait for them just spend. In a bad market, the difference is learning.
Ask yourself how long it has been since you learned something new. Your competitors are improving right now.
Adapted from Dave Tan's book How High Should Your Customer Retention Rate Be? (2014, in Chinese), updated for today. About the book
Author: Dr. Dave Tan, DBA — Founder of Vital Design, Doctor of Business Administration (DBA). A business consultant to salons and SMEs since 2003, and author of a book on salon management.
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