Outside Forces

Unfortunately, analyzing your “3 C’s” and coming up with a matching “4 P’s” is not enough. We live in a changing world and none of these things ever stays the same. Many companies go out of business because they lose track of their customers or competition and never adjust their marketing mix. It is imperative that companies keep an eye on the world around them and how it is changing their “3 Cs”. It is also imperative that, as these things change, the “4 Ps” are adjusted to compensate. The following are a few of the “forces” that can have an effect on your business.

Society - As with most things, social styles and values change constantly. These changes range from color to styles to status consciousness and more. It is important to watch over these changes and adjust your marketing mix accordingly.

Technology - You never know how technology will affect you. In the retail business, it usually affects how you execute your business more than your product offerings. However, the popularity of home theater and personal computers has changed the type of furniture adorning many people’s homes.

Competition - Again, competition can come from a number of places, often without warning. Keep an eye on anyone that might want your customer’s money, and know what they are doing.

Economy - Many businesses know first-hand what happens when the economy changes. Things like inflation and unemployment affect retail businesses before almost anyone else. As the economy moves up or down, so should the pricing and inventory levels of a retail business, as sales levels are soon to follow.

Government - You never know when the government will come up with a new tax, tax cut or series of regulations. Regardless of what it is, it affects the amount of money that your customers have in their pocket and the cost of operating your business.

Business Planning Books & Software

Should you decide to undertake a business plan to help keep your competitive edge, there are a number of books and software packages to simplify the process. These products typically include outlines to help put together the information that you’ll need to complete your plan. They also include spreadsheets to lay out the financials that will help predict the results.

Books - There are many informative books on the art of creating a good business plan. Your best bet is to look through several and find one that addresses an area of the process that you know the least about.

Software - Several companies produce software that includes outlines and financial spreadsheets to help complete a business plan. These packages are usually compatible with Microsoft Word and/or Microsoft Excel and are very easy to use. Jian produces a product called BizPlan Builder, that has sold over 350,000 copies according to their web site (www.jianusa.com). Palo Alto Software (www.paloaltosoftware.com) offers a product called Business Plan Pro. Both are available through a number of major computer retailers and mail order catalogs.

Jim Boudreau is Managing Partner of Genesis Strategies, Inc., a marketing and business development consulting firm based in northeastern Connecticut. Jim has an M.B.A. from Northeastern University, where he also serves as a part-time lecturer.

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