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Business Strategy:
Five More Tips and Tactics for a Tough Economy
In my last article, I gave you the first five tips for thriving in a tough economy. Do not use these sparingly. Jump in with both feet!
6. Reactivate Your Old Customers
Call it the bright shiny penny syndrome. During a boom it is common to keep selling new customers and ignore those you’ve just sold. In a slower environment, it helps to do the opposite. Get back in touch. Call, mail, email… If you’re products and services were any good, and prior buyers had a positive feeling, you have a good chance of bringing them back in to the fold. It’ll be easier to sell to them because you don’t have to prove your stuff is good. They already know that. Just make a strong offer. Making it time-sensitive helps.
7. Cut Unnecessary Spending
We say it all the time: no one ever cost-cut their way to greatness. Better to focus on revenue building than cost reduction. But now is a good time to review your expense journal and cut some of the fat. The fat, not the meat. Don’t cut effective marketing programs – expand them. Don’t slash your sales force, only the non-performers. Even the best run businesses accumulate lots of extra overhead when the money tap is on full force. Take a close look. Get rid of things that do not make business sense. Ask, “what is the return on this expenditure?” If you can’t say clearly, get rid of it.
8. Acquire Your Competition
Overlooked by many entrepreneurs and business owners, acquiring competitors and cooperators is a fast path to building a bigger business. While always a good strategy to consider, struggling businesses with excellent potential can be bought cheaply during a slowdown. Acquisitions can add to your customer base, boost revenues, increase your access to credit, provide strong (and trained) staff members, and help build your business in all sorts of ways. Of course there are risks, but no more so that at any other time.
9. Improve Your Internal Systems
Companies like FedEx and Dell are famous for their systems. Their DNA is woven around logistics and process control in a way that makes them almost unbeatable. If you plan to dominate your niche, strong systems are critical, but when sales are in hyperdrive, none of us pay them any attention. Optimistic thinkers see an economic slowdown as the calm before the storm. Use that calm to batten down the hatches. Strengthening your systems so that they are efficient, consistent, and scalable, prepares your company for the next big surge in business.
10. Topgrade Your Staff
A time for housecleaning, that’s what this is. There are members of your staff who simply aren’t cutting it. The truth is they haven’t cut it for a long time, but you’ve been too busy to do anything about it. And since there weren’t that many people on the market you kept them on. Use this economic “pause” to review your team. Clear out employees who don’t make the top grade, and replace them with strong performers who don’t see opportunity where they are now. Write compelling want ads and screen applicants for clear values and top results. And only settle for the best.
Get the FIRST five business strategy tips and tactics on how to thrive in a tough economy.
Carpe diem. If you see opportunity and would like some help in seizing them day, get in touch. Paul Lemberg and his team at Axcelus can help you accelerate your business while minimizing the risks of growth. www.paullemberg.com/Business_Coaching.html