8 Ways to Keep Your Business Afloat in a Bad Economy
August 15th, 2008
Janet Attard asked:
by Janet Attard
Has the economy got you down in the dumps?
Is the sales prospect who seemed so excited about your product last month stalling this month? Did that big account you’ve been trying to nail in another company tell you they love your product, but want you to cut your price in half? And, when you called the buyer you usually deal with at third company, did you get a recording saying, “The number you dialed is no longer in service.” And, now, you’ve just heard that your biggest customer is going to start using an overseas company to do the work they had been outsourcing to you.
Running a business is never a sure bet, but in today’s economy it sure can feel like you’re caught between the proverbial rock and a hard place. What can you do when things get tough? How can you get ahead when your business is beginning to make you think of a bus emptying out on the last run of the day? Here are several strategies to consider:
Reinvent your business
You don’t have to be a venture-backed high-tech company to reassess your business model. In fact, the smaller and leaner your business already is, the faster you can shift gears and zoom back into action.
Sit back and take a cold, hard look at your strengths and weaknesses and possible markets. Advertisers may be staying away from your web site in droves, but could corporations use the databases you’ve developed or your technology? If you’ve been selling products online, could they sell offline, too? If you’re not selling online, why aren’t you?
Do you need to develop new products or services? Don’t guess at what customers want and will pay for. Analyze your existing sales and talk to living, breathing prospects. What do they need? What can you provide? What’s the best way to deliver solutions to them? What’s going to bring in the most profit?
Put it all down in black and white and look at the numbers. What are the easiest ways to make the most profit quickly? What should you be doing on a longer term basis to ensure your business continues to grow and prosper? Revise your business plan based on your answers, then start to work your plan.
Contact former customers
Don’t assume that a customer who stopped buying from you in the past will never buy from you again. Customers’ needs and circumstances change, just as yours do. The megacorporation that didn’t renew your contract a couple of years ago because of changing business priorities may have changed their direction once again and be a good prospect now. The customer who went with a lower-priced competitor may be dissatisfied with the quality or service and be receptive to a call from you today. Or, the manager who had given the work to his best friend may no longer be with the company.
Contact competitors of present or former customers
If a company needs what you sell, there’s a good chance their competitors do too. Industry groups you belong to, trade shows, seminars, and friends in the industry can all help you identify likely prospects. If the people you meet don’t need your services, ask if they can put you in touch with someone at their company who could.
Call former prospects
The bigger a business, the slower they are to move. The project that was put on indefinite hold last summer, may become urgent this spring. Or, some other project the company is working on may be right up your alley. So touch base periodically. The more recently you’ve contacted a client, the more likely they’ll be to remember your name - and your phone number - when they are ready to buy.
Sell additional products and services to existing customers
Often the easiest way to bring in new business is to sell more to your existing customers. You may be ale to sell more of the same product to the same contact, or sell the same product to a different division of the company. Or, you may be able to sell related products and services to the customer. Keep your eyes and ears open for new opportunities and be sure your customers are aware of all of your capabilities.
Work your Rolodex®
Labor statistics show people entering the workforce today are likely to change jobs seven to 10 times in their careers. You can position yourself for new sales just by keeping in touch with people as they change jobs. The human resources manager who hired you to do a harassment awareness training program for Company A, may need to find someone to put on the same kind of seminar at Company B. Thus, if a contact at a client company tells you they are leaving the company, ask them for new contact information.
Team up with other vendors for joint sales
Recommendations and referrals are among the leading sources of new business for small businesses. An easy way to get more referrals is to team up with other businesses who sell to the same market but don’t directly compete with you. Agree to refer business to one another and link to each others’ web sites. Look at possibilities for joint sales, as well. Doing so may allow you to bid on and win bigger projects than either of you could on your own.
Develop multiple revenue streams
That’s corporate speak for a concept that’s as old as the hills: find more ways to make money. For instance, if you are a web “content” writer whose market is drying up, hone your skills to write for offline publications, business brochures or technical manuals. Or, learn to do web design and desktop publishing and add those services to the writing services you offer customers. Other types of businesses might consider licensing intellectual property, selling advertising space in their catalog, renting direct mail lists, or performing services for other companies that they’ve developed for their own use.
© 2008 Attard Communications, Inc. Janet Attard is the founder and CEO of Business Know-How®, a popular small business website that has been providing information and resources to businesses for 20 years. The site publishes two free newsletters for small businesses. Subscribe to the Business Know-How® newsletters at http://www.businessknowhow.com/newsletter/subscribe.htm
Online reprints of this article must include the author’s byline, copyright and resource box. You must get permission from the author to reproduce the article in print publications.
by Janet Attard
Has the economy got you down in the dumps?
Is the sales prospect who seemed so excited about your product last month stalling this month? Did that big account you’ve been trying to nail in another company tell you they love your product, but want you to cut your price in half? And, when you called the buyer you usually deal with at third company, did you get a recording saying, “The number you dialed is no longer in service.” And, now, you’ve just heard that your biggest customer is going to start using an overseas company to do the work they had been outsourcing to you.
Running a business is never a sure bet, but in today’s economy it sure can feel like you’re caught between the proverbial rock and a hard place. What can you do when things get tough? How can you get ahead when your business is beginning to make you think of a bus emptying out on the last run of the day? Here are several strategies to consider:
Reinvent your business
You don’t have to be a venture-backed high-tech company to reassess your business model. In fact, the smaller and leaner your business already is, the faster you can shift gears and zoom back into action.
Sit back and take a cold, hard look at your strengths and weaknesses and possible markets. Advertisers may be staying away from your web site in droves, but could corporations use the databases you’ve developed or your technology? If you’ve been selling products online, could they sell offline, too? If you’re not selling online, why aren’t you?
Do you need to develop new products or services? Don’t guess at what customers want and will pay for. Analyze your existing sales and talk to living, breathing prospects. What do they need? What can you provide? What’s the best way to deliver solutions to them? What’s going to bring in the most profit?
Put it all down in black and white and look at the numbers. What are the easiest ways to make the most profit quickly? What should you be doing on a longer term basis to ensure your business continues to grow and prosper? Revise your business plan based on your answers, then start to work your plan.
Contact former customers
Don’t assume that a customer who stopped buying from you in the past will never buy from you again. Customers’ needs and circumstances change, just as yours do. The megacorporation that didn’t renew your contract a couple of years ago because of changing business priorities may have changed their direction once again and be a good prospect now. The customer who went with a lower-priced competitor may be dissatisfied with the quality or service and be receptive to a call from you today. Or, the manager who had given the work to his best friend may no longer be with the company.
Contact competitors of present or former customers
If a company needs what you sell, there’s a good chance their competitors do too. Industry groups you belong to, trade shows, seminars, and friends in the industry can all help you identify likely prospects. If the people you meet don’t need your services, ask if they can put you in touch with someone at their company who could.
Call former prospects
The bigger a business, the slower they are to move. The project that was put on indefinite hold last summer, may become urgent this spring. Or, some other project the company is working on may be right up your alley. So touch base periodically. The more recently you’ve contacted a client, the more likely they’ll be to remember your name - and your phone number - when they are ready to buy.
Sell additional products and services to existing customers
Often the easiest way to bring in new business is to sell more to your existing customers. You may be ale to sell more of the same product to the same contact, or sell the same product to a different division of the company. Or, you may be able to sell related products and services to the customer. Keep your eyes and ears open for new opportunities and be sure your customers are aware of all of your capabilities.
Work your Rolodex®
Labor statistics show people entering the workforce today are likely to change jobs seven to 10 times in their careers. You can position yourself for new sales just by keeping in touch with people as they change jobs. The human resources manager who hired you to do a harassment awareness training program for Company A, may need to find someone to put on the same kind of seminar at Company B. Thus, if a contact at a client company tells you they are leaving the company, ask them for new contact information.
Team up with other vendors for joint sales
Recommendations and referrals are among the leading sources of new business for small businesses. An easy way to get more referrals is to team up with other businesses who sell to the same market but don’t directly compete with you. Agree to refer business to one another and link to each others’ web sites. Look at possibilities for joint sales, as well. Doing so may allow you to bid on and win bigger projects than either of you could on your own.
Develop multiple revenue streams
That’s corporate speak for a concept that’s as old as the hills: find more ways to make money. For instance, if you are a web “content” writer whose market is drying up, hone your skills to write for offline publications, business brochures or technical manuals. Or, learn to do web design and desktop publishing and add those services to the writing services you offer customers. Other types of businesses might consider licensing intellectual property, selling advertising space in their catalog, renting direct mail lists, or performing services for other companies that they’ve developed for their own use.
© 2008 Attard Communications, Inc. Janet Attard is the founder and CEO of Business Know-How®, a popular small business website that has been providing information and resources to businesses for 20 years. The site publishes two free newsletters for small businesses. Subscribe to the Business Know-How® newsletters at http://www.businessknowhow.com/newsletter/subscribe.htm
Online reprints of this article must include the author’s byline, copyright and resource box. You must get permission from the author to reproduce the article in print publications.
