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How would you keep your business active during a market downturn?  Where would you invest your precious time, resources and budget?  Should you hire more sales staff, launch a new campaign, or just cutback on the less profitable lines of business.  Below k&h examine some ideas of keeping your business afloat during stormy times.

Persistence pays off

In good times you may be able to choose your best customers, it is only natural to focus on those that are ‘easier’ to do business, less demanding, and generally better to get along with.  In a downturn you will need to go back to your database and unearth some old leads and try again.  Who know what may have changed – a new owner, a new product line, maybe a falling out with previous suppliers?  So don’t throw out those old leads or dead end enquires.  Try again, what do you have to lose?

It’s a well known fact that winning new business is harder and more costly relative to existing customers.  So be prepared to call them 5 times rather than 3, it can be worth it.   Don’t give up; the next sale is just around the corner.

Maximise your existing customer value

Look at ways you can upsell, maybe you could increase the order value by a few percent, improve the frequency of purchase, or introduce some new services such as regular audits & health checks.  Such services provide ‘repeat’ business and a steady cashflow.   Avoid inventing new services or products; just make sure that you sell as much of your existing portfolio to each customer.   Increasing the lifetime value of customers is one of the best ways to increase margin.  You worked hard to win, so now maximise the return.   And be more alert than ever, your competitors will be getting desperate.

So eliminate the competition

Not in an illegal way!  If a competitor is getting that desperate, then is now a good time to buy them out?  The fittest survive, and you will gain market share, the opportunity to cross sell complementary portfolios, and an increased customer base.  A good time to achieve a bargain.

Focus on your strengths

During the dark days, then the head has to rule the heart, even more than ever.   Stick to what you know, reduce investment in new projects and postpone that dream.  But only for a short while, no more than six months.  Complacency has a nasty habit of creeping up on you and is a sure way to get overtaken, so set timelines and budgets, stick to them.  Review on a regular basis and go forward as soon as your business outlook improves.

Make those Systems your lifeblood

Consistent Customer Service and Cost Savings are just two benefits that systems can bring to your business.  Every business has systems, but do you really know how rigidly your team follow those systems, it’s easy to overlook mistakes or omissions when the money is flowing in.   At this time you must keep your customer happy and do this cost effectively.   Have you carried out a review of your systems in the last 12 months, do you know what your customers really think of your service level, this year, not last year?  (You know that of course, as you used a truly independent customer satisfaction survey).

Here’s an idea.  Choose your most recently recruited employee, test their knowledge of your systems and arrange training updates.  But first, get them to assess the ease of use and breadth of your systems, making sure the systems really reflect the everyday tasks. A fresh pair of eyes will bring a new perspective from the way it’s always been done.

Lead and be positive

A positive attitude will make a difference. Your team, your customers, your new prospects and your suppliers will sense a positive outlook.  You are the leader, others will follow.

Good luck and keep going.