Preparing For the Storm: Part II

In this series, we’re discussing preparing for economic storms. The rate of inflation, interest rate trends, and the stock market's direction can be warning signs when the storm clouds appear to be rolling in.

One of my favorite indexes is the National Federation of Independent Business Optimism Index. Because it’s a survey of small business owners’ perceptions, it has helped predict economic storms.

When this index begins to fall, it is another indicator of problems ahead.

The first step is staying close to your largest customers. If your customers become concerned, they will begin cutting back their purchases. However, you cannot be everywhere at once, so try to focus on your biggest and most vital customers.

Proverbs 27:23 says, “Know well the condition of your flocks, and pay attention to your herds.”

It's easier to predict the reactions of animals and people the closer you are to them. If you are checking up on your customers, you will know as soon as a shift in attitude or decision making occurs. Additionally, your attention will reinforce that they are valuable customers to your company.

By staying close to your customers and asking good questions, you can learn how to best prepare for the storm.

Questions For Reflection

• Who are your largest customers? Do you have a frequent-customer base if not a few specific customers? How might you ‘stay close’ to your customers?
• Do you know the projected future of your industry? What are customers doing already? What have they done in the past?