A couple of weeks ago business management company MYOB took the pulse of the NZ business community. Their Business Monitor Survey surveyed 1000+ small and medium business owners and managers, from sole traders to mid-sized companies, representing the major industry sectors.
It threw up some fascinating results including that over half (51%) of all SME operators expect the economy to decline in the next year – 12 per cent of them significantly.
BNI NZ’s National Director, Graham Southwell, says SMEs must take their networks seriously to weather any possible economic slowdown. He has three key observations that provide guidelines for businesses facing challenging times in the upcoming year: (1) increase marketing, (2) deepen your networks and (3) have sound hiring strategies.
- Increase marketing – Firstly, Graham says, in challenging times, rather than slashing the marketing budget, it’s crucial for businesses to increase their marketing efforts. The economy always has its rises and dips but as things start to get more difficult, businesses need to get more proactive with their marketing. One way to market proactively is simply to be present and engaged at chapter meetings. When you are a member you have the opportunity to form all manner of connections with a range of businesses. This includes marketing specialists who may be able to assist you with your branding and how to better communicate your message in challenging times.
- Deepen your networks – The survey noted the number of businesses expecting revenue to drop over the next 12 months has almost doubled from 11% in February to 21%. Graham says that deepening your business networks rather than just relying on brand awareness, is a key strategy for SMEs who want to maintain consistent revenue growth. Reflect on when you first joined BNI compared to where you are today. Your connections and network should be far stronger. It may not just be the relationships you have made through your immediate member network, it may be a deeper series of connections you have made outside of BNI with the people that members have introduced you to. Customers don’t just appear out of thin air and businesses need a clear strategy for meeting new people and developing relationships with these people. Being part of BNI is one way of the best ways to get introductions to new prospects.
- Smarten your hiring strategies – 9% of businesses in the survey said they planned to take on more full time staff in the next year, rising from 7% in February. Graham says that those businesses considering bringing on new people need to think about those people’s key skills. Networking has become now a core competency for employees and contractors. It’s not just what they know, it’s who they know. Businesses need to consider this when they formulate their hiring strategies. This includes bringing on board business development and marketing specialists. These types of people make excellent members and visitors to BNI. No matter the economic conditions if you follow Graham’s 3 tips, you’ll weather any storm through BNI.
