Adaptation is necessary for all businesses in order to stay ahead of the evolving markets and ensure a steady income even during the worst of economic times. During the recession a number of shops closed due to the fact that they did not adapt their business strategies quickly enough – however under the circumstances even those who did struggled. So here Nova Insurance looks at four methods for adapting your shop in order to keep afloat even during the worst economic times:

Always have an eye on the Market

As a shop owner, the only way that you can ensure that your business stays open for a substantial period of time is to accept the fact that markets change. This means that you need to constantly study and monitor the markets in order to understand what issues could ultimately affect your business. This doesn’t just have to be changes to the UK market however; even small changes in your local area can have a huge impact on your business. For example, footfall in the area where your business is located could drop considerably if a new shopping centre is built in a different part of town, or if the council installs parking restrictions near your shop. In order to protect your business you should always make the time to study the UK retail markets in depth, as well as build up a working relationship with your local authority.

Understand that Demographics Change

When you first opened your shop your business plan probably included the demographics that it would appeal to. However, even though the products you sell may still appeal to the same demographic, the behaviour of certain demographics may have changed over time. For example, it used to be believed that older demographics would be less inclined to shop online as they would struggle to keep up with new technology, however this is not the case. The rise of what is called ‘silver surfers’ means that even older demographics are now starting to shop online instead of visiting actual stores, leading to many businesses seeing a drop in sales. Even regular customers who have visited your store for years may change their shopping behaviour, so never rest on your laurels when it comes to attracting new customers.

Focus on Customer Service

If there is one thing that will never go out of fashion it is good customer service, which means you need to make sure that every single time a customer comes into your store they are treated like a king or queen. While this may sound a bit over the top to some, the fact of the matter is that your business relies on customers in order to stay open, so you need to give them the respect that they deserve. Furthermore, people are much more likely to part with their money if they like you – don’t forget that unless you sell products that are particularly niche your customers can always purchase what they want elsewhere. Even though good customer service will always be important, what your customers expect from you may change over time, and one way to understand them better is to ask them for feedback on your store. You may be surprised with what you find!

Have Multiple Business Plans

Gone are the days where a company can have a single business strategy which they stick to no matter what, as with the economy being so fragile and prone to fluctuate on a regular basis businesses need to have multiple business strategies. For example, if something unexpected happens to the economy again, you will need a plan that takes into consideration the possibility of downsizing or even closing your business for a certain amount of time. While this may seem like a negative way of looking at things, it’s better to be prepared than to find yourself in debt and struggling to pay your rent, shop insurance or other outgoings. Remember, it’s better to take a break from your business during a difficult time than end up in a situation where you will have to close it for good.

If you look at any major retailer on the high street today you will see that they have evolved since they first opened, and it is because of this that many are still around. Make sure you do the same for your business, and you are likely to stay open no matter what issues you face in the future.

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