Browse by Category
Tips & How-To's
Don't Recede!
5 Ways to Grow Your Business During a Recession
By Amy Kramer | July,2008
1. KEEP BROADCASTING- Consistently communicate your message. Some people are going out of business. When you regularly broadcast your message, people understand it isn't going to be you. They're also reminded of what you do and why they should buy from you. When people hear dead silence, they assume the station has gone off the air. If they think about it at all.
2. HOLD ONTO WHAT YOU'VE GOT- Survey your customers. Learn about their heartache and their dreams. See how you can further align what you do with what they want to achieve. Do what you can to mitigate their heartache. (even if it's only to say that you understand.) Don't raise your prices or levy fuel surcharges. Let your competitors do those things. (And when you don't do those things, point out that you're not doing it.) Refer your customers to other customers. That extra business will help them do extra business with you. If you find your customers are in a tight spot or worried that they're heading into one, let them know that you understand and you're here to help. If you lose customers, call them and fight to get them back. If you are truly providing an excellent service or product, it's in the best interest of your customer that you hold onto them. (And it helps you, too.)
3. USE IT OR LOSE IT- One good thing about a recession: It's a great time to get lean. Spend time doing a zero-based budget.* (That's a budget that calls into question every expense.) Make sure that every expenditure is necessary and valuable- and then cut what isn't. Lean shouldn't equal "mean"- for you or your customers. Starvation diets leave people bitter and angry. You want to trim fat, not muscle. So:
- Don't cut marketing. Let your competitors make that mistake.
- Don't cut valued people (you'll be sorry when the boom comes and they're working for someone else).
- Don't cut customer service (you'll be handing your customers to your competitiors).
Maybe you can shift costly mail into email. You can canel the service, subscriptions, and memberships that you don't actually use. (These small monthly charges add up.) Hold off on new equipment and upgrades until needed (unless you can get a deal now because vendors are hungry). Unless you use it, lose it. If you can't draw a straight line from an expense to a benefit, line it out.
4. BUILD ALLIANCES- Make a list of your key vendors, the folks your business couldn't live without. Then check in on them. How are they doing? If they go down, you don't want to get taken with them. Maybe you can help.
- Can you refer them to your own client?
- Can you give them an order they need now (and arrange payment terms)?
- Do you have good advice or other resources to share?
When you build a relationship with your vendors, you're building an alliance. They'll remember it, and thank you. (With referrals, or discounts, or special terms, or all of that) And they'll still be around- which is good, because you need them.
Actively trading referrals with vendors builds business. Ask if you can send a testimonial from your vendor to their client list, in trade for your doing the same.
5. LIGHT THE FUSE- What follows every bust? A boom. So this recession-perceived or true- will be followed by an expansion. Will you be ready? Let others try to catch up to events in the rearview mirror. You want to waether the recession, but plan for the expansion. That means laying the groundwork-now- for where you want to be, so when it's time for your revenues to explode all you have to do is light the fuse.
What will You 2.0 look like? What will your revenues be? What sort of customer base? How many employees? How will your products and services change and imporve? How much capital will you need? What will be the payoff- for you, your employees, your customers, the world? Plan it now so you will be ready. Dream big now. The dream will help sustain you.
WE KNOW. YOU'RE SKEPTICAL. You just want to get through the recession. It all just looks bad. Now is not the time to think of growth. Over the years, we've worked with hundreds of clients and we;ve lived through many economic booms and busts. Here's what we've learned:
- Recessions are short-lived.
- Smart companies make money during them.
- Superior companies get prepared to make a killing during the boom.
Seize the opportunity of the bust- to re-evaluate and strengthen your business. And get ready for the boom.
Amy Kramer holds a B.S. in Journalism and Advertising, with a minor in Marketing. Whether drafting marketing plans, conceptualizing websites, or designing campaigns, Amy’s focus is on helping clients achieve their goals.
