The following guest post is from Neil Belenkie, who lends his expertise on steps businesses can take to not only survive the recession, but thrive in it. Here's his top 10 ways to grow your business during tough economic times.
1. Budget Responsibly
This is not the time for frivolous spending. 60 inch plasma tvs are not a priority, no matter how cool they would look in your foyer. Make absolutely certain that every dollar you spend is directly related to generating revenue for your business.
2. Make Knowledge-Based Decisions
Don’t use intuition when it is possible to use facts. It will take extra work, but when you have data to base your decisions on, not only can you measure the success of your decisions but you can remove the risk of uncertainty.
3. Be Strategic
Success is not luck. Think hard about why your customer would want your products or services. The marketplace has evolved, make sure that your message is relevant and that your communications resonate with your target audience.
4. Be Unique
Do not try to be all things to all people, be all things to a few people and they will all buy.
5. Innovate
You need to find new ways to make money. Create new applications for your existing products, find new customers who would benefit from your services, find new products that your existing customers will also need... Do not accept that what you’re currently doing is all that can be done.
6. Partnerships
Figure out exactly who your customers are and then think about where else they are purchasing their products or services. Approach the providers of these other products and services and create partnerships where you can refer customers back and forth between your businesses. Their company is not competitive to yours so it is in both of your best interests’ to make this work.
7. Plan Well
The marketplace has changed, is your business plan still relevant? Spend time analyzing how your customer’s need have changed and ask yourself if you have changed with them. If not, you need to make sure that you have a plan to bring your business up to date. If you are doing well, then make sure you have a plan for the next phase of this evolving marketplace. Stay ahead of the wave and the water will always be ripple free.
8. Invest in Low Risk ROI Opportunities.
Money is tight but that doesn’t mean that you can afford not to spend. Keep seeking out new business opportunities. With each opportunity, assess the investment versus the forecasted revenue and don’t be afraid to go after an opportunity when the numbers work.
9. Create Multiple Revenue Channels.
If you are only doing business through your store, you need to find new ways to access your customers. Start an online business where customers can purchase your products remotely. Hire sales representatives who can take your products to the customers instead of waiting for your customers to come to you. Find other companies to sell your products for you. More access to customers equals more sales.
10. Do it Now
Your business will not turn around on its own and every day passed is another day of lost revenue. Commit to making changes now.
Author Bio:
Neil has spent more than 15 years as a sales, marketing, and business development executive in multiple industries. He has served as a consultant with Ray & Berndtson Executive Search in Vancouver, and also co-hosted a radio show in Vancouver called "Grow Your Business". Neil is active in the non-profit sector serving as a Board Member of the Vancouver Biennale.
Keep up with all that Neil is doing on his blog, This Spade is a Spade.
What do you think? Anything you would add/subtract from Neil's list?
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Photo Credit: Darwin Bell
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You touched on this in a few of your points: A good strategy at any time is to diversify – whether it’s diversifying your product line or adding new channels to sell your product – the main thing is to never be stagnant. Always be looking for new opportunities.
@Andy
I’d agree, and think Neil did a great job explaining that. Diversifying income streams and product lines will help you not only weather the storm, but grow in any economic climate.
Thanks for coming by,
Matt
Hi Andy
It could take another article to cover it but you’re absolutely right, never be stagnant. What people don’t realize is it doesn’t have to cost money to look for new opportunities and refocus a business.
Thanks for your comment.
Neil
I would like to add one more point to the list – Stop Watching or Reading Recession Reports.
I don’t know whether it is completely right to do so but reading these news reports, feel bad and dwell on it will definitely not get your business anywhere. It just keeps you from trying because you will be so pessimistic.
Good article by the way,
Wayne Liew
Most importantly, don’t stop marketing. Now is the best time to promote your business while there are fewer competing voices. Marketing is not an expense; it’s an investment!
@Matt: Another one hit out of the park.
@Neil: Excellent post. Great tips, succinct. You get right on it without a lot of mumbo-jumbo. Worthwhile tips – printworthy
Cheers!
George
@Wayne: I actually like to see all of the recession hype because it helps to keep away competition. There is no better time to grab marketshare than when all of your competition has dropped anchor hoping to ride out the economic turmoil. Not to mention the additional benefits of the negative press keeping away new entries to market.
That being said, you are absolutely correct in the bad press perpetuating the recession. The economy needs the press to stop trying to sell newspapers and start trying to sell hope.
Best Regards
Neil
@Wayne
I’m with you on that one. There is so much doom and gloom, perpetuated by the media, that you really shouldn’t pay attention to it all. You’d drive yourself crazy, and end up feeling like there was no hope, when I think quite the opposite is true.
Matt
@Tumblemoose
All the credit goes to Neil, he did a great job with this article.
Matt
@Eric
Good point. Many times businesses will want to cut their ad spend to save money. To me that’s like cutting off your nose to spite your face. It’s a downward spiral that will do nothing to help you weather the storm. Wise ad spending in a recession is definitely an investment into your business today and in the future when we pull out of the tough times.
Matt