What to do in a downturn? Who will survive, who will thrive?

Go to the coalface. I have experienced a previous market downturn – but many young entrepreneurs today have not. There have been years of growth and years of high spending. I guess it was all too good and now times are different and require a different level of attention.

However it is not the time to be gloomy or pessimistic, and we should always keep all things in perspective.

We live in a great country and we mostly live amazing lives, if we care to compare with some of the other six billion on the planet, many of whom spend each day simply looking for food to stay alive, then we look around us and see people dying of cancer, lying in hospital, disabled etc etc.

You may say what has all this go to do with surviving in a tougher economic climate?

Well I say a lot, because as an entrepreneur our attitude is really important, and we need tools to keep our attitude right. One of the tools I use is that of observing how lucky I am compared with most of the planet, and I use this tool to lever me to focus, to be creative, positive and hard working.

Over the last few weeks I have noticed that many of the businesses I work with and certainly in my own, the owners and or CEOs are going to the coal face, really looking carefully at customer demand, at what customers really want, what they are willing to pay for and whether or not the product or service offers customers a distinct benefit and most importantly looking at how customers are being treated.

To this end I have been visiting Target stores and speaking with griffin+row customers and it has been a really interesting and helpful experience. It has given my business partner and I a clear sense of what we need to do next-it’s been the best sort of market research and fun!!

I am amazed however at how some CEOs bury their heads in the sand. I had this experience last week. My Rado watch had fallen off my wrist. I had to have the glass face and a small clip replaced-this watch is special to me as it was a gift from the Swatch company.

When I took the watch to the company I was told I would be sent a quote in a week, and it would take about two weeks to repair.

As this is the only watch I have I was concerned about the timeline but felt I had no choice. Three weeks later I have not received the quote, which I had been told was sent by mail, and in that same phone call I was also told the repair would cost $400-plus. When I questioned this price I was informed that the repair had to include a total service, whether I wanted that or not!!

Now none of this makes sense to me-I have collected the watch and given it to a local watch repair person. I had asked that the CEO call me as I was amazed at being told I had to have a full watch service but as a CEO I also realise how tough difficult some customers can be!! No-one has called, business has been lost etc-and a very unhappy customer has not been contacted!!

Go to the coal face; and make sure you are giving your customers what they want, what they are prepared to pay for, and do you best to satisfy them. Or as in my case, watch them disappear!!

To read more Marcia Griffin expert advice, click here.

Marcia’s latest book, High Heeled Success (pictured left), and is a frank account of building a business from a solitary sales person to a multi-million dollar business with 4700 sales consultants around Australia and New Zealand. Contact Marcia to purchase. Marcia’s latest venture is skin care company griffin+row.

Got a question for one of our Experts? Choose one that suits your area of inquiry and send it in to asktheexperts@smartcompany.com.au