depression, economic downturn and the like? Hey – it’s an
overused quote, but, “When the going gets tough, the tough get
going.” This couldn’t be truer for small businesses – in the midst of
all the seeming adversity are many opportunities.
Here are 7 ways to get going NOW. If you act on even ONE of
these, you will be facing any adversity head-on!
1. Strengthen All Your Business Relationships
Harvard Business School research found that a 5% increase in
customer loyalty can lead to 40% to 90% increases in the lifetime
value of that customer relationship. You need to earn your
customer's loyalty, so during tough times consider offering
discounts and easing payment schedules. Also consider bundling
inexpensive features into your product line, adding value and
potentially adding revenue.
2. Reinvigorate Your Prospects
While you might wait for customers to come to the door, consider
contacting your existing leads with tailored product suggestions. A
study by the Thomas Publishing Company found that 80 percent of
sales to businesses were made after 5 sales calls, but only 10
percent of salespeople called prospects more than 3 times. Be
persistent.
3. Develop and Document Your Business Systems
It is your responsibility to keep your processes running efficiently.
Inspect your production cycles for ways to increase efficiency and
value, and scrutinize your supplier and production costs.
Understand your price points relative to your cost of production,
and also estimate those price points for your competition. Make
sure your sales and marketing processes are documented and
trained at least monthly, if not more.
4. Protect Your Core Team
Staff cuts may be necessary to keep your business running, but
don't set your people up for disappointment. Communicate realities
clearly and objectively, and keep people informed. During severe
trauma, a human body will divert blood to vital organs as a priority;
similarly, a business needs to keep its core “organs” working well.
5. Finally Write That Strategic Plan
Slow times can present opportunities to work on strategic plans for
marketing, product design, website updates, staff training,
equipment repair and building repairs. A slow period could also be
a good time to improve your management skills. Here’s a chance to
work ON your business, not just IN it.
6. Consider an Acquisition
With customer traffic slowing, consider improving your market
position by acquiring a competitor. An economic slowdown affects
everyone, so evaluate not only your business' situation but those
of your competitors as well. With sufficient resources, you may be
able to acquire a competitor and improve your market position.
7. Keep a Positive Outlook!
A positive attitude will make a difference with all those around you.
Prospects will sense a positive outlook and are more likely to do
business with you. Your employees will perform better. Suppliers
will be more apt to extend special terms if needed. Even you
family and friends will respond to you in like positive kind.
Business in America goes through cyclic ups-and-downs; keep your
outlook on the upside and take action TODAY to move your
business in a new, positive direction.
Henri Schauffler, The CEO Coach, has dedicated the last 20 years to helping
small businesses like yours to Outmanage, Outhire, Outsell and Outprofit
All the Competition. For a FREE business assessment and tune up to see
exactly how you are doing in all Eight Essential Areas for Business Success,
go to http://www.QuickBizQuiz.com.
