OPPORTUNITIES DO EXIST IN AN ECONOMIC DOWNTURN

The constant stream of negative reporting in the media about global economic doom and gloom has had an adverse affect on many small businesses (including mine). While previously I may have received up to a dozen enquiries every month from new clients, this number has dropped significantly of late. So, rather than resting on my laurels and waiting for the market to turn, I wondered what I could do to 'recession-proof' my business? I started doing some research and have put together a list of the best tips and tricks I could find.

Don't stop marketing

In tough economic times, the first thing many small businesses cut is their marketing budget. All advertising is stopped in an effort to save money. In fact, this can be one of the most effective times for small businesses to increase their marketing.

Chances are your competitors will have pulled back, or stopped, marketing in an attempt to save money. If you continue, or increase your marketing during this time, more potential customers are likely to notice your message because there is less competition.

While you may not receive an increase in business or enquiries immediately (after all, your customers are probably hurting financially too) when the market does pick up and people start buying again, your company will be 'top-of-mind' and your competitors forgotten.

Give your customers added value without extra expense

During tough times people want value for money. Thankfully this doesn't always mean slashed prices. Added value also comes in the form of exceptional service, a focus on quality, helpful information, guidance and after sales service.

Value added service will increase loyalty among your existing customers and, through referrals, help to attract new customers. Your excellent reputation will precede you and you may even start drawing customers away from your competitors!

Focus on your core competencies

In an economic downturn many business try diversifying by introducing additional products and services. One interesting article I read warned against this, instead suggesting focusing on what you do best:

Just adding other products or services to your offerings is not diversification. At best, it's a waste of time and money. Worse, it can damage your core business by taking your time and money away from what you do best and/or damaging your brand and reputation. Drop the extras and focus on what you do best that is most profitable to recession-proof your business.

Nurture your existing customers/clients

We all know it costs a lot more to acquire a new customer than it does to keep an existing customer. When money is tight, rather than spending extra cash trying to bring in new customers, sales opportunities may already exist within your current customer base.

Importantly, let your loyal customers know you appreciate their business.

Watch your competitors

Keep a close eye on what your competitors are doing. Just as you are trying to lure their customers away, they are no doubt trying to do the same to you.

Your competitors may be offering cheaper prices, a more competitive offer or better service. If your clients are completely happy with the service offered by your business it will be harder for your competitors to lure them away.

By no means is this list complete. These are just a few points that I found interesting and informative. Try doing a Google search for 'recession-proof your business' and you will get an indication of just how pertinent this information is at present.

The truth is that tough economic times 'flush out' many industries with only the strongest businesses surviving. Some companies flourish during these times because they are flexible enough to adapt to the changing climate and fast enough to take advantage of opportunities that may arise.

Good luck and if you have a tip that has helped get your business through tough times I'd love to hear it.

For more information please contact Rebecca Mitchell direct on (02) 9997 1909 or via email.

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