A lot of businesses are struggling right now. It’s vital to understand that not all economies are the same. In a down economy like this one, many businesses need to adjust the way they operate.
Companies that once ruled the roost, disappeared because they were too complacent and didn’t heed a changing scene. Anybody remember Myspace?
There’s no point in going into why the economy is bad. What you need is to know the details of how it is affecting you, so you can take effective action.
In every downturn, not only are there business that disappear or downsize. There are many companies that boom and thrive!
The first thing is being aware that one is occurring. And then realize: It is not business as usual.
Companies that disappear during, or are crippled by, an economic slowdown, do one of two things:
a. Nothing,
or
b. they hunker down and try to ride it out, hoping to survive.
I say, “NUTS!” Much better to face up to it and take well calculated action to not just survive but take advantage of the circumstances.
I’ve personally seen companies disappear from each of these “strategies.”
So in an economy such as we have right now, you need to change things. WHAT to change is the trick.
The most general answer is to greatly increase your marketing. That starts with a basic understanding: No matter how bad the economy, there is a lot of business out there. If the pie is smaller, you need to get a bigger piece of it.
Yes, it isn’t necessarily easy at all. And there are few universal rules to guide you. But you start out knowing the business is out there, because it is. Even in the depths of the great Depression, unemployment was only 25%.
If you are going to get a bigger piece of the pie, one way or another you need to connect with more prospective customers. How to do that is as varied as can be imagined.
What are the big rules?
1. Greatly increase your volume of outreach. If you need to, you borrow to get that done.
2. If what you are doing isn’t working, do something different. But don’t forget to consider things you used to do that were successful.
3. Re-examine your business model. In an economic downturn, you are likely spending more money on your marketing. At the same time there may be a squeeze on prices. Competitors are cutting prices to hang onto market share. You still have to show a profit to survive.
4. Greatly improve the quality of your products or service delivery, and greatly improve your customer service.
If this sounds grim, don’t take it that way. It’s a challenge, but take it as a great opportunity.
It is, you know.