It seems that every day at the water cooler, the conversation is centered on the latest major company to go under. The fact is the whole world is experiencing a major recession, even if some analysts choose to disagree. When major companies go bankrupt, one can only imagine how small business owners are surviving.
One thing about Guatemala, which the rest of the world many times ignores, is the entrepreneurial drive that has always been a part of its culture. In many instances people who did not graduate high school have successfully owned and managed their businesses for decades.
These dire times call for many small business owners to go back to the basics to make sure their foundation is strong. For this we visit some basic principles and take a the ideas from our Guatemalan entrepreneurs to do this.
- Know your customer
Not everything is for everyone. It is important to know who your customers are, what they like, how they think, what they wear, and how they behave. You should know everything! As Eliseo Xiloj, from Talleres Mixco explains, "I know that the people who live and work around here depend on their car for transportation. Many times it is the only car in the family so when it breaks down they need it fixed fast and cheap." If you know what your customer wants, and expects, it is easier for you to exceed their expectations, thus creating repeat business. - Location, Location, Location
You do not need to be a major corporation on a major intersection to have an impact. Eliseo mentions that a few blocks away from his auto shop there is a frequently used street, however, during morning and afternoon rush hour, when the street is congested, many drivers look to avoid such clogging by taking the next street, his street. By knowing the habits of his customers, he has placed his business away from a major road, thus avoiding higher overhead, while at the same taking advantage of the exposure that his location enables him to have. - Listen
Many business owners tend not to listen enough. Even when business is good, you need to listen to your customers. If you pay close attention they will tell you things you should know. "After working on a car, we used to spray the interior with an air freshener so that when people picked up their car it would smell good. We did this for two years, until one day a customer asked us not to spray his car" Eliseo says, "He said the smell was too strong, after that, we asked other customers and they all thought the same thing. We don't do that anymore." Not listening can cost you customers, so make sure you keep your ears as open as your eyes. You will be amazed at the information you will get just by listening. - Be Profitable
This might seem funny, but you would be surprised to know that it is not uncommon for business owners to carry products or services that are not profitable. You should do some numbers and you will quickly notice that sometimes it is better not to offer that particular item. Eliseo explained to us "We used to do radiator work, but it takes too long to get the piece fixed and the car out. At the same time it is getting fixed, the car takes up valuable space, so we decided to stop doing that work and focus on work that was quicker. That allowed us to have a faster turn around and increase our sales." While looking for profitability you might come across other products or services that you had ignored before, but may increase your bottom line.
Of course, there is no way to guarantee success, but if you go through these four points, and you check off every single one, you can feel confident that you are on the right track to surviving these hard times.
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Photo. Andrew Dunn
