The world is on the brink of experiencing the most severe economic depression since the 1930s, as reported by Martin Weiss, Ph.D. for The Daily Reckoning. Despite Weiss's seemingly pessimistic outlook, the facts support his assertion. Since the tragic events of September 11, over 415,000 layoffs have been announced, initial jobless claims have surged to 528,000 - the highest level in decades, consumer confidence has plummeted, and businesses have lost billions of dollars. With the uncertainties brought about by the attacks and many economists predicting a deep and prolonged recession, businesses must take every possible measure to prepare for the impending storm and survive the challenging times ahead. These times are predicted by some to be even more devastating than the Great Depression of 1929. A recent OECD Report suggests that the "Global Slump Could Last Until 2003". Here are seven proven strategies to shield your business from economic downturns, ensuring not only survival but also a competitive edge when the economic tide turns.
In a fragile economy, diversification can be your business's greatest ally. The more services you can offer, the more clients you can attract. For instance, if your business primarily creates business plans or marketing collateral for big-name clients, consider expanding your services to include press releases, sales letters, web content, or other business-related products and services. You can further diversify by repackaging your product and selling it to a different clientele. For example, you could host a seminar or workshop on writing business plans. Each attendee may not be able to pay your standard fee, but collectively, you may earn more and even gain a few new clients. With a bit of innovative thinking, you should be able to develop several "new" offers, all of which will help keep you ahead while your niche-focused competitors struggle.
Once you've started attracting customers, the challenge is to retain them, especially in a stagnant economy. You must provide not only a high-quality product but also exceptional customer service. When money's tight, clients expect more for their dollar. If you want to keep their business, you must keep them satisfied. Refine your customer service strategy to ensure that every step from taking the order to delivering the product is client-focused and effective. Consider conducting customer satisfaction surveys to ensure your customers' needs are being met. Also, consider enhancing your service value to clients with faster delivery times, wider selections, or more flexible payment terms.
One of the biggest mistakes business owners make during economic slowdowns is to cut back on marketing and advertising. This could be detrimental to your business. Instead, your marketing needs to be more aggressive and comprehensive than ever. Start by reaching out to past clients and simply touching base. Chances are a good number of them will have projects or assignments that require your services. Offer discounts, freebies, or other extras as incentives. You may also want to set up a referral reward program for clients as part of your marketing efforts. Re-evaluate your current marketing methods. If you're not seeing an increase in sales from every dollar you spend on promotions, then you're wasting valuable revenue. As P.T. Barnum famously said, "Without promotion, something terrible happens - NOTHING!"
Are you content to follow the herd? Step outside of your comfort zone and dare to lead rather than follow. Set yourself apart from the competition by developing your own unique selling proposition (USP), sometimes also referred to as an essential selling advantage (ESA). Your USP could be your superior customer service, lifetime refund policy, best prices, or the outstanding quality of your products. Once your customers experience your USP, you have no reason to worry about the economic slowdown or competition. In fact, you can use your USP to ruthlessly eliminate your competitors.
One of the best ways to stay ahead of your competitors is by keeping up with current technology. If you're not familiar with customer relation management software or email marketing, now is the time to learn. You can put your business online, advertise with well-placed banner ads, send out information to potential clients via email, outsource some of your administrative duties, manage your payroll, or establish an affiliate program all on the Internet. Current technology can help your company run more efficiently and cost-effectively, plus it can open access to clients in the next city, in another state, or even enable you to compete in the global marketplace. You'll have the potential to reach millions of people who would otherwise have never heard of you or your product. In a slow economy, you need all the exposure you can get.
Nothing will damage your business more than short-sightedness. To stay successful, you must always keep an eye on your long-term goals and objectives. You will hit rough spots, but do not get bogged down in the present. Every decision, every cutback, every improvement you make now must be beneficial not only in the present but more importantly in the future. Think about this before you slash prices, fire employees, cut overhead, or lower your standards.
If you're like most people, you're content with the status quo until something disrupts it. You should be constantly re-evaluating not just your marketing plan, but all of your business strategies, including policies, pricing, and employee performance. The goal is to be as efficient and effective as possible so your company runs smoothly and profitably. Look closely at your competitors. Talk to business leaders you respect. Read business management books. Experiment. Solicit feedback from your workers and customers. By doing several of these things, you will accumulate a wealth of knowledge and experience crucial to the survival of your business.
As you read this, tens of thousands of businesses across the country are headed for extinction. Implement these recession-proof strategies immediately, and you are guaranteed to see assets where others see liabilities, opportunity where others see failure, and extra profits where others see financial losses.
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