A family business that's gone stagnant is a sorry one. While the signs may not show up for awhile, it will eventually run you to the ground. As the industry changes, new products evolve, and customers interact with your business in new ways, your business must evolve.
"But we've always done it that way," is a sickness - but a curable one! The following are a few of the symptoms of a stagnant business, and how to fix it without drastic risk.
- Cut customer service costs. First of all, customer service shouldn't be seen as an expense - it's a revenue generator for repeat business. If you really care about your customers, it will show.
- More is more. Just because you sell more doesn't mean you're making money. Frequently analyze your key performance indicators and financial records. Also, develop good relationships with your customers; a good pricing model is key to good sales that actually make you money.
- It's not broke, so don't fix it. It's an old saying with little relevance in the business world. Don't get trapped into this mindset: think about new ways to get business from existing customers, serve your customers better, and become more efficient.