How many times have you heard, “It’s a recession?”From business owners alone, I hear this several times a day. This saying is either used as an excuse...
How many times have you heard, “It’s a recession?”
From business owners alone, I hear this several times a day. This saying is either used as an excuse or as a cry for help.
Since I am not one to pay any attention to excuses, I would like to address this as a cry for help. I believe a few fixes and a little planning can recession-proof your existing business and turn “I’m hanging by the skin of my teeth” to “We have elected to skip the recession.”
This economic climate will inevitably produce natural changes to business, but it is how we, as business owners, react to this ebb and flow that will ultimately decide our fortunes.
I must admit my shock when waking up two years ago and half of my business had disappeared. After that realization, I spent a lot of time rebuilding. Rebuilding is the polite word for what happened, truthfully, I shook up my entire business model, readjusted, and practically restarted in some areas.
NO ONE can predict the future and if you spend your time just hoping that everything will eventually turn around and go back to normal, well then you are in for a very rude awakening. I suggest you shut your doors and save yourself the heartache.
If you are willing to make tweaks to your business in order to outlast and conquer the recession then I suggest you start with a full analysis. This first step is to not only analyze your business, but your competitors as well. Many times we see in others what we fail to see in ourselves. Think of this when analyzing your business.
Look at your books, the market, and see what has changed. Stop and familiarize your new environment. Sometimes things change so quickly or even so subtly that we don’t even notice what has happened.
From here: REEVALUATE YOUR STRENGTHS
KEEP it simple- Cut costs, be familiar with all your numbers, eliminate waste, look for less expensive vendors and for heaven sakes --- NEGOTIATE. I find it amazing how many business owners are intimidated by the negotiating process. (Just to keep your business, vendors will usually be willing to negotiate on costs, delivery fees, and bulk purchases.)
UPDATE your business model- This step could be as simple as changing up your marketing strategy by integrating social media. Here creativity is rewarded. Call for help with your social media.
PRICING- Focus on what makes you unique and attractive to customers. Offer more of what people want and less of what they don’t. Customers are still spending just not in such large amounts or in bulk packages. Integrate an a la carte menu or create a less expensive entry price. Whatever you do, don’t bottom out your price. Consumers still believe that a cheap product is a CHEAP product.
Keep your customers happy. Customer service is a must. Constantly focus on your customers’ experience and taking care of them. (They will reward you with loyalty and word of mouth advertising) Reward loyalty by creating incentives and most of all retain your current customers.
