(Look closely at the logos above…)
Aren’t you tired of hearing about all the worries of recession, 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.
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Henri Schauffler is the CEO Focus Facilitator in Washington, DC and suburban Maryland. He 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:
https://ceofocus.com/ceoquiz.html.
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