Success in a Down Economy
How do you succeed in a tough economy like the one we are currently witnessing? How do ensure that your business doesn’t go down like many others have done? How do you ensure that you’re not just keeping the business afloat and instead make meaningful profit?
It demands that you make very thoughtful decisions and calculate every of your moves. In down economy you can’t afford to make careless mistakes.
Here are 4 tips to help you steady the ship in the hard times.
1. Cut costs judiciously
Tough times call for big decisions so the first thing you may need to do is cut costs where necessary. These are several ways to do this;
— Take out less money from the business
— Slow down any expansion plans by shelving investment plans
— Cut or reduce owner and/or partner compensation by a calculated margin,
— Hire fewer employees or thin your staff appropriately
2. Do not slow down
When business slows down, it’s time to be most active. Instead of waiting for the next customer to drop by or make a call, engage your employees in finding ways to cut costs. You can also use this opportunity to strengthen relationships with existing customers, refine business, or prospect new customers.
3. Re-evaluate the effectiveness of your marketing
A tough economy also presents you with the opportunity to re-evaluate your marketing and find out what you are not doing right. We mentioned cutting costs and this will actually help a lot, but do NOT cut your marketing spend in a tough economy. Keep spending; just do it smarter. This helps in three ways;
— You instill confidence in your customers as they learn that you’re a stable business,
— You position the business to move forward swiftly when the economy bounces back, and most importantly
— You gain a market share over your competition.
Finally, consider reinventing practices for increased profitability. And reinvention here is not just about doing the same things differently; in some situations you’ll need to ditch old methods and adopt fresh ideas. For instance, it could be a good time to find new markets, not outside but within your competition.
With these tips and a bit of patience, you can expect to steadily sail through a down economy and should actually emerge stronger on the other end.