In Tough Times The Opportunities To Grow Your Business Are Still Out There...

“Business is slow”. Business is real bad”. I have never seen it this bad”. I wonder how much worse it can get”.
 
You have heard all of this from others. You may even have said these things to yourself, quietly or aloud. No doubt, we are in the most challenging of times. Sure, we’ve all heard the bad news: the housing and mortgage crisis, the banking crisis, the auto industry crisis. You can’t listen to the news without hearing just how bad it is out there.
 
The government, both at the federal and state levels, cannot help you. Even if they could, it would take too long for the aid to trickle down to you to make any difference. The banks either cannot or will not help you. They are still trying to figure out what happened to them and all of the bad loans they made. Businesses large and small are seeing their profit margins fall.
 
So, what are you to do? Continue to lament your circumstances? Stick our head in the sand until it gets better? By the way, sticking your head in the sand has only two tangible results – first you deny reality and secondly, you put your butt in a position to get kicked by your competition.
 
 Times like now also present great opportunities. That’s right - Recession equals opportunity. So how can recession equal opportunity?
 
Yes, when times get tough some businesses will fail and “tough times” doesn’t just mean a recession. Any business can fall on tough times, even when the economy is great. But if you have your house in order, you’ll not only be able to survive the tough times, whenever they arrive, you’ll be ready to take advantage of the opportunities that are always out there. Here are some tips to consider.
 
Develop a Clear Vision. Do you know where you want to take your business in a year? Three years? Most business owners don’t have a vision for the future. Without a clear vision, a business owner has no choice to make more knee jerk decisions that necessary and go down more dead ends than others. In essence, they are continually living in the problem as opposed to living in and with the solution. Knowing where you want to go immediately puts you several steps ahead of your competition and gives you an intelligent base for all of the decisions that you make.
 
Contact Your Customers.  A recent study done in Washington, DC several years ago pinpointed that the biggest reason (in 68% of the times) customers stop buying from you is “perceived indifference”.  That’s right; they think you do not care!
Your existing customers are often your best source for new business and referrals. You have already built a relationship with them. They know your products and like your service.
 
First, take a look at your customer list. Which ones rank in the top 20 percent of your sales? Which are in the bottom 20 percent? For most businesses, the top 20 percent of the client base accounts for 80 percent of their sales. These are the people you need to stay in touch with on a regular basis. Call them and say hello at least once every few months. Take the time to find out what their needs are and how you can help them.
 
Are your current customers familiar with all of your products and services? The worst thing a business owner can hear is, “I didn’t know that you did that!” Educate your customers about all of your products and services. It takes less time, less effort, and fewer marketing dollars to sell more services to an existing customer than to find and develop a new customer.
 
Take a look at your bottom 20% of your customers. You know who they are. They pay slow and are high on the grief meter. Get rid of them. I mean it – get rid of them. There are better customers out there waiting for you to help them find you.
 
Ask For Help. Your clients can also be your best source for new referrals, but many people don’t know how to ask for a referral. The statement, “I need a referral,” can often be a big turn-off to your customers. Instead, try a different approach.
 
Sit down with your customer and say, “I need your help. I’d like to expand my market.” Explain exactly the type of client you are looking for and ask if they know anyone who fits that description. You’ll probably end up with a list of about 20 people. But don’t stop there.
 
Take a look at the last person on the list and ask your client why that person is at the bottom. You’ll often find out a lot more information this way. The person could be considered “a pain to work with,” or slow pay, or any of half a dozen other reasons that make them a person you don’t want to do business with. Scratch them off the list and go on to the next person. At the end of the process you’ll end up with about six to eight excellent leads. Finally, instead of cold calling on these people, ask your client to arrange an introduction, make a phone call or send a letter telling them about you and your business.
 
 Expand Your Marketing – the Right Way. One of the most common mistakes business owners make when times get tough is to cut back on their marketing. Instead, in tough times, when it is often harder to make a sale, you need to be marketing even more. Don’t however; just scatter your marketing dollars in the wind. Make sure that you have a marketing plan. Track your marketing efforts. What has worked for you in the past and what has not? Know who your target market is, what they are looking for, and where they are looking for it. That way you’ll be better able to make the right marketing decisions.
 
 Now is the time to go after that larger share of the market, but to do that you need to be clear on your company’s story. Every business has its own Unique Selling Proposition. Be prepared to explain it to all of your customers. You want them to know who you are, what you do, how you are different, and what the benefits are for your clients by doing business with you.
 
Take a Look at Expenses. Every business owner should look at their expenses regularly – even when things are going great. In fact, that’s often the most important time to go over your expense levels and decide which things you need to make your business a success and which things are really just luxuries. Expenses have a way of creeping higher when times are good.
 
Be realistic about what you spend. If you can’t pinpoint a specific dollar contribution to your business, you should probably do without it for now.
 
Engage Your Staff - If you want to turn this recession into opportunity for your business, take a look at your employees. Identify their strengths and weaknesses, and engage them in your company. Make sure that they understand how helping your business to grow helps them.
 
It can be uncomfortable, even difficult, but if any of your employees are not performing up to standard, get rid of them now. There are lots of great people out there right now looking for jobs. Make sure that your employees are the best.
 
Keep a Positive Attitude. In tough times, that is often one of the most difficult and most important things to do. Remember, no one wants to be around a whiner, someone who is always talking about just how bad things are. Stay positive, keep positive people around you, and remember recessions don’t last forever. By taking care of your business now, you’ll be in an even better position to move forward when the economy improves.

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