The new economy is the phrase that is being used quite a bit lately. What does it mean and how does it relate to you and your business?

With economic belts tightening for just about every type of business and just about everyone who owns or works for one of these businesses, many get it. They understand that the new economy is one that does not have a defined element that defines it and differentiates it from the old economy. The difference with the new economy, as I see it, is that companies and individuals are being more cautious with purchases. Companies and individuals no longer run out and buy a product or service. More thought is being put into making each purchase decision. There is a greater interest in seeing the return on investment. This is something that should never have stopped anyone in the business from thinking. Value for money is now more important to many people than it was a few years ago. However, this does not mean that everyone is looking for the cheapest service or item.

Businesses are run by people and people want good value, they also don’t want to buy junk or receive poor service. They want a balance between the two. People realize and expect to pay more for better quality and service. If you are in a business that is fairly mainstream and where buyers and customers have several options from which to decide to give their business, then you will need to make your business stand out.

If your business is like everyone else, then your service or product is a commodity and the business will go for the lowest price. Low price leaders often don’t last long.

When times are tough, smart business owners don’t calculate the price of their products and services. Doing this will reduce your profits and make it more difficult to stay in business. Smart companies will work to increase the unique qualities that their company and service offers. Perhaps a better guarantee is offered to customers to help them stand out from the competition. Having flexible work hours to best suit client needs is another way to stand out. Flexible scheduling makes it easy for people to work with you without conflicting with their own occupation or schedule.

Whatever difficulty your business may be having right now, it’s likely to pass. What you need to do to ensure your business is available for the best of times ahead is to differentiate yourself and stay profitable.