In today’s economy, most business owners are thinking about survival. However, many successful entrepreneurs will point to previous economic downturns as the launching pad for explosive growth of their business. Many will point out that because their core business had declined so rapidly, they were forced to look at new markets, new products, new customers or all of the above just to keep their businesses alive.
Marketing and sales
When business is tight, there is a
tendency to cut business expenses
across the board. However, the
area that has to be maintained is
marketing and sales. The marketing
effort has to be tactical, in that
it is looking to identify markets
and buyers that are in the buying
cycle now. If your current marketing
efforts are not producing
results, change your tactics.
Reach out to your existing and past customer base. Are there opportunities to expand in their market place? Where are their businesses headed and can you expand with them in new markets?
Columbus Woodruff II is founder and owner of Hotcards.com, a rapidly growing full color printing and graphical design business with offices in 12 cities around the country.
“You cannot be local, you have to reach further and grow your business where business is growing. The goal is to have your eggs in a whole bunch of baskets, not just one,” he said
Capital management
Capital is the lifeblood of any
business. Most businesses fail
because they do not have sufficient
working capital capacity to reliably
pay suppliers, employees and
taxes. During a downturn, it is
critical to have close control on
receivables, inventory, operating
expenses and credit lines.
Andrew Jackson is Executive Director of the Commission on Economic Inclusion and leads the Minority Business Accelerator in Cleveland, Ohio. He also owns several successful businesses in the area.
“Too many people think that a recession is the time for their business to take a recess. During a recession, it’s a buyer’s market and people with capital have the best opportunity to grow their asset base,” he said.
Customer satisfaction
Mobilizing and motivating your
staff and yourself during a recession
is difficult, because there
tends to be significantly more bad
news than good. This can affect
morale and customer service.
According to Woodruff of
Hotcards.com, “First, we use the
term customer satisfaction instead
of customer service. Our goal is to
satisfy our customers, not just
service them. During a recession,
when people are spending less,
they have to be satisfied or they
will go to one of our competitors.
Our slogan is do unto others as
they want to be treated.”
Growing in a downturn
Growing a business during a
downturn begins with the owner
understanding that economic
expansions and downturns are a
regular part of the business cycle.
Marketing and sales, capital management
and customer satisfaction
are the keys to growing your business
during a downturn and establishing
a broader business platform
for rapid growth during business
recovery.
Michael G. Shinn, CFP, Registered Representative and Investment Adviser Representative
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