VISION & STRATEGY www.ceotodaymagazine.com 63 focusing much of their attention on getting new customers. Of course, customer acquisition is always an important part of running a small business – but if you have just seen numbers of clients dwindle, due to more difficult economic circumstances, it can feel especially important to build those numbers back up. However, in this scenario, such a push for new clients can come at the expense of prioritising holding on to existing customers. You might not be aware that acquiring a new customer can cost five times as much as retaining an existing customer. This goes to show that putting too much budget into new customer acquisition can be an expense, and not really worth it. What is even better still is the fact that repeat customers actually spend more money with you than new customers. According to market research, the figure is 67%more. Keep ahead of tech trends One area where startups and small businesses can have an advantage over their larger competitors is that they have the flexibility to move their systems as new technology becomes available. Larger companies need to make decisions long in advance regarding infrastructure and technology, while it is easier for startups to change things as soon as something is available that could make a difference. This could involve transferring to new pieces of software or taking advantage of fintech products. Have multiple scenarios for growth It is also important to look at the economic downturn as a chance to make your business as lean and effective as possible. This doesn’t mean that you need to immediately cut everything that you currently do, but it is a good time to reflect on what works and what doesn’t work and make decisions on that basis. In fact, it is a good idea to have multiple different scenarios that you can work towards for growth. See what elements of your business work during the downturn and which need rethinking. It is only then that you can start to make decisions about what to get rid of and what to keep. “It is surprising just how many business owners try to get started without a proper business plan,” says Oliver Spevack, Partner at Hamlyns Chartered Accountants. “It is like trying to plan a journey without a map. The fact is that business advice for startups is easily accessible and available at prices even small businesses can afford.”
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