Eight Ways to Make Your Business Stronger in Tough Times: What to do when business gets slow
Posted: Sunday, January 11, 2009
by Michele Sobota
DB Management Group
Now that Wall Street has delivered us an economic version of 9/11, what will this mean for your business? Will the mess on Wall Street hurt companies the way 9/11 did, when some markets dropped almost 30%? If this happens again will your industry collapse and die?
Of course not. Yes, it could slow things down for a while. Your industry may endure a vigorous session of Pac man -- but in the words of Gloria Gaynor – I/it/we will survive. But you can do more than just survive in hard times. You can use them to your advantage.
I saw a piece on television the other night that said when things are down, good companies move forward. Competent companies find ways to grab more of the market share. I firmly believe this is true. Those who strive to get better when times are hard, get better.
1. Fire up your sales effort. We've seen it time and time again, when times get tough advertising budgets are slashed, travel is postponed and sales people are laid off. What a great time to hit the road and visit the customers of those companies. Show strength by talking about a positive future for their company, customers and potential customers. You will find that they'll prefer to do business with your company, rather than those that are cutting back.
2. Capitalize on your company's strength. If your company is doing well, then use that to your advantage. If you've been successful enough to not worry about your line of credit, now is the time to point that out. Let your customers know you are financially strong.
3. Build your team. I still cannot figure out how companies can justify letting good sales people go when they are worried about business. But they do, so take advantage of it. Make your company stronger and snap up the good sales and operations people now available.
4. Buy some equipment. During times like these your vendors tend to get worried. Equipment vendors in particular can be hurt by a shaky economy. Consequently, they will be ready to make some great deals. There is never a better time to buy equipment than in a down economy. The discounts will fly and payment plans will be favorable.
5. Cut new deals on consumables. The more Wall Street scares the populace, the more companies you do business with will want to make deals. There's never a better time to re-negotiate that raw materials contract, then during a down economy. Actually it's good for vendors as well. At least it's better than the alternative, which is not selling anything at all. So work with them for your mutual benefit.
6. This is also a good time to cut deals with customers. Now is the time to win new business away from the other guy and offer strategic pricing to win over that customer you've been after for so long. But first, make sure you do this with companies that have the kind of business you want and that will help your company.
7. Develop a new marketing plan. Craft a strong, positive message about your fiscal strength and vision for the future. This kind of message stands out in a sea of despair. It will also help position your company as the one that's doing well while others are faltering. This will help attract new business, because you will represent the company that's going to be around for a while.
8. And finally show great confidence (not cockiness) in everything that you do. You want people to know that you are in this race for the long haul and they can count on you. And let's face it, it's not that much of a risk to be confident, because if you have done everything right, you have everything to be confident about.
What's interesting about so many of the industries that took a pounding during the post 9/11 economic decline, is almost all of them have come back. Just a few years later they're doing much better than they were before 9/11. In fact some markets grew because of 9/11!
Remember, markets cannot be measured in days, weeks or months, they need to be measured in years. If history repeats itself -- which it usually does -- then the next few years will also show strong growth.
So tomorrow morning get to work, make it happen and view the future with clear eyed optimism and confidence. You and your company will be just fine.
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Top-level comments on this article: (1 total)Some good suggestions for tough times. I think the samll business owner especially is in big trouble this year as layoffs go sky high.
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