Take a Fresh Look

Chapter 5: Growing Your Business - Page 5.2

Take a Fresh Look

Back in the 1970s when I was a foreign correspondent living in Mexico City, I dealt frequently with an American diplomat who provided information about Mexico's increasing oil exports, which were a big story back then. We had lunch about once a month and he became a friend.

Then one day he told me he was being transferred to another post because he had been in Mexico too long. I was disappointed for two reasons. "What? But you've only been here for three years," I said, "and you've barely learned the good restaurants!" He explained to me that the U.S. foreign service moved people about every three years on purpose. "Otherwise we think we know everything and we stop questioning assumptions," he said, "and that's dangerous."

I still remember that day because I've seen the same phenomenon many times in the years since, in business. We — business owners and operators — are so likely to fall into the same trap. Our business landscape is constantly changing, no matter what business we're in, but we keep forgetting the fresh look. "We tried that and it didn't work" is a terrible answer to a suggestion when a few years have gone by. What didn't work six years ago might be just what your business needs right now. But you think you don't have to try again what didn't work in the past.

This is why I advocate the "fresh look" at the market at least once a year. Existing businesses that want to grow too often skip the part of business planning that requires looking well at their market, why people buy, who competes against them, what else they might do and what their customers think about them. Think of the artist squinting to get a better view of the landscape. Step back from the business and take a new look. Use the standard techniques and content from Gathering Information: Know Your Market, applying it to your existing business, not a new opportunity.

Talking to customers — well, listening to customers, actually — is particularly important. Don't ever assume you know what your customers think about your company. Things change. If you don't poll your customers regularly, do it at least once a year as part of the fresh look. As an owner, you should listen to at least a few of your customers at least once a year. It's a good exercise.

For creativity's sake, think about revising your market segmentation, creating a new segmentation. For example, if you've divided by size of business, divide by region or type of business or type of decision process. If you've always used demographics, use psychographics. For a discussion of psychographics, see Gathering Information: Know Your Market.

Remember to stress benefits. Review what benefits your customers receive when they buy from you, and follow those benefits into a new view of your market.

Question all your assumptions. What has always been true may not be true anymore. That's what I call the fresh look.

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