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Social Security Update
"3 Vital Keys to Grow Your Business in an Economic Downturn"
By Bonita L. Richter, M.B.A.
In today's economy, many small business owners are thinking only about survival. In my consulting practice, during the last two weeks I've picked up four new clients whose businesses are approaching bankruptcy if they can't get things 'turned around'. Their core businesses have rapidly declined, and they don't know what to do to keep their businesses alive.
In times of an economic downturn, businesses are forced to look at 1) entering new markets, 2) offering new products, and 3) attracting new customers from their existing market.
Aside from practicing everyday good business management practices, there are three vital things you can do immediately to help stimulate growth of your business in an economic downturn.
1. Keep Marketing
When money is tight, there's a tendency to want to cut expenses across the board. One area you don't want to cut is your marketing and sales budget; you'll definitely want to maintain your spending in this area.
Many of the new clients I see tell me that what used to work for them to market their businesses isn't working for them now.
Take a fresh look at your marketing strategy, and see how you can reposition your company. Your marketing efforts also have to be tactical, in that you must identify industries and markets where buyers are in the buying cycle now.
If your current marketing tactics aren't working for you as well as you'd like, reevaluate what you're doing and make changes.
2. Manage Your Money
Cash is the lifeblood of any business. Most businesses fail because they don't have enough working capital to pay their ongoing expenses. During a downturn, it's critical to have control over your receivables, inventory, operating expenses, and credit lines.
Tip: Develop a twelve-month cash flow budget to plan your cash requirements, and identify the timing of cash shortages so you can plan on how you're going to get the cash you need to keep your business operating.
3. Great Customer Service: Your Secret Weapon
During times of a recession, customers have to be completely satisfied or they'll take their business elsewhere. The only real competitive edge you have over your competitors today is by offering great customer service. Any company can duplicate your products, prices, and quality. However, they can't take away your relationships with your customers.
Think about how you will create 'meaningful memories' for your customers, and put some thought into what you can do for your customers to make them feel special. How can you put your personal signature on the job? What will make you stand out?
Here are some ideas, 1) send motivational quotes or a "thought of the day" in your mailings, 2) enclose a piece of chocolate or sugarless gum in everything you send your customers, 3) put fun stickers on your packages and letters that express your personality, 4) do something unexpected to delight them.
Think about what you are going to do today to make your customers' lives better.
To grow your business in an economic downturn be proactive, 1) take a fresh look at and revise your marketing strategy, 2) plan cash management activities, and 3) think about how you will create memorable customer service and memories.
To find out how to get free marketing coaching *click* here.
Copyright 2009, Bonita L. Richter
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