Small business owners know the secret to survival

They are innovative, they get the job done and they are engaged, writes Adam Legge

While some talk about bucking the downturn, small businesses are doing it.

I am continuously amazed at the spirit and determination of small businesses. Here in Calgary we are facing a lot of headwinds — an economic downturn, a new provincial government, rising unemployment, reduced spending. Traditionally, these challenges would flow down to small businesses that are often hit hardest due to the size of their enterprises.

But that doesn’t seem to be the case right now. Sure, small businesses aren’t necessarily as busy as they were 12 to 18 months ago, but I am amazed at how well many of them are doing.

Many of these small businesses are doing very well. They are in fact busy hiring, expanding and innovating. They are looking at this downturn and saying, “Not us. This will not be the end for us.”

What is their secret, you might ask? I believe it revolves around three key factors.

The first is that they are nimble and quick. Their size is almost a blessing in many ways. They aren’t bogged down by policy, bureaucracy and old ways of doing things. They are able to respond so much faster to the market, the customer and opportunities. I have seen many of these companies make changes almost overnight that would have taken months to flow through a larger hierarchy. They are looking at ways to expand their product line or retool in ways that can drive new revenue. They are applying trends from other cities around the world. They are innovating and investing, and they are doing it quickly.

The second factor is that these businesses are seeing opportunities in new markets. Interestingly, despite the theory that a downturn might be the worst time to enter a new market, many small businesses are doing just that.

Keep in mind, we Albertans are some of the only Canadians and Canadian businesses that aren’t doing well right now. Other parts of the country are flourishing. B. C. and Quebec, particularly Vancouver and Montreal, are doing very well. We are seeing companies that honed their product locally now seeking new frontiers in which to sell their wares.

From the companies I have talked to, this strategy seems to be paying off. They are doing this in a practical and well- thoughtout way, by working with suppliers and agencies in those markets.

They are doing exactly what any challenged business should do — looking for new markets.

The third factor is perhaps the most exciting — small businesses are engaging in the community. Many are not seeing themselves as simply a business that makes a profit. They are building their brand in the community. They are becoming household names. They are actively participating in community efforts in areas that are important to them, getting involved in making their city better — through everything from a festival to standing up and advocating for better policy and regulation.

Regardless of what they are doing, they are becoming a part of the fabric of their community. Businesses that don’t get involved are no longer thriving. The ones I am seeing with staying power, the ones whose customers will stick with them despite the downturn, are the ones that are part of this city. Household names. Leading the charge on events, the arts, gatherings, celebrations. They communicate with the customer actively — in person, in the community and digitally.

These are savvy businesses that know how to build loyalty. And it is paying off in spades.

So while the downturn is expected to last for another year or so, don’t get caught in the downward spiral. Every small business should think about these three factors as ways to not only survive the downturn, but to thrive.