15 Helpful Business Tips to THRIVE in Tough Times!
May 11, 2009 by Adam
Filed under Business, Entrepreneurship, Making Money, Me & My Life
I was thinking a lot this weekend about the downturn which almost every country throughout the world in going through. I was also thinking how this can have an impact on the performance of so many businesses. It’s only natural that entrepreneurs of small and large companies are feeling the pinch during these challenging economic times. But rather than viewing the tough economy as a bad thing, look at it as an opportunity to improve your business practices so you can not only survive the tough times, but thrive during them. Here are 15 ways you can position your business to face any type of diversity that comes its way.
1. Streamline Business Practices.
This is an opportune time to review your business procedures for effectiveness. Consider areas that can be combined into one or structured differently to reduce costs. Think about sharing resources, like administrative or payroll work, with other entrepreneurs to reduce overhead. The goal is to streamline operations so you can still provide a quality product or service, yet realize a greater profit by reducing the expenses to produce it.
2. Work Smarter.
As a successful entrepreneur, you know you have to work smart to maximize business potential. But are you using the latest advances in technology to their potential? Look at all areas of business operation where you can cut waste or work faster and better by investing in automation software, new equipment, or web based applications.
3. Customer Appreciation.
Remember that your customers are going through a tough time, too. In order to retain their business, implement measures to express your appreciation. This could be a one-time price reduction, a customer loyalty card, or a referral incentive. Whatever the strategy may be, it should be something of value to the customer and within your marketing budget.
4. Evaluate Marketing Tactics.
If you are conducting marketing activities that cannot be measured for effectiveness, then it’s time to evaluate your approach. It is essential for an entrepreneur, regardless of their type of business, to conduct marketing efforts that show measured results. For example, if you run an ad in a newspaper without a coupon, then there’s no way to determine its effectiveness in growing your business. With marketing, it’s important to know what is and isn’t working for your business.
5. Get The Most From The Web.
The Internet offers a multitude of opportunities, many of which are entrepreneur focused. There are free services that can help you streamline administrative functions, enhance selling strategies and expand marketing efforts. For starters, ask yourself if your company website is making the most of email marketing, keywords, search engine optimization and other online marketing efforts. Attracting online buyers goes well beyond a company website. In these challenging times, it’s worthwhile to tap into entrepreneur blogs to learn about ways to enhance your online presence.
6. Expand Your Customer Base.
Rather than rely on the traditional avenues for attracting customers, it’s time to think of other ways where you can reach a whole new segment of the population. Target your product or service to a particular age group, lifestyle interests, or income group. By refocusing your reach, you can increase your customer base.
7. Position Yourself As An Entrepreneur Expert.
Chances are your local media is doing a lot of stories on how businesses and people are surviving these tough economic times. Here’s your opportunity to be a resource for their story or article by providing a quote and getting free exposure for your company at the same time. Keep your message positive and portray the entrepreneur spirit of optimism! Use the Internet to get national recognition from email publishers of entrepreneur and business publications. You can also become a speaker in your area of expertise at seminars, conferences, or conventions in exchange for advertisement in the event booklet.
8. Get Involved.
When business slows, it’s time to let everyone know that you’re still around with a valuable product or service. The most effective business comes from word of mouth. So become more involved in community functions, events or organization. As an entrepreneur, you should also tap into any trade organizations, such as your local chamber of commerce, small business forum, associations related to your line of business, and entrepreneur groups.
9. Focus on the Core.
If you’ve branched out into different areas over the years to improve market reach, it might be time to regroup and focus on the core of your business and outsource the rest. Evaluate what is and isn’t working and put more efforts into what started you out as a successful entrepreneur in the first place. It’s important to get in touch with your core business and make sure it continues to meet the changing needs of customers.
10. Change Pricing Strategies.
Depending on the financial outlook for your business, you might need to consider revising your pricing strategies in order to thrive long-term in an unfavorable economy.
11. Evaluate Vendors.
If you use vendors for packaging, labeling, distribution, or in other areas of your business, this is a good time to do some price comparisons. There is a lot of competition among vendors to attract new business, so you could realize some serious savings in this area. Since no one wants to lose business during a bad economy, chances are good that your current vendors will meet the competitor’s price. If not, it’s time to move your business to the lowest bidder, just as long as you’re not sacrificing quality!
12. Keep An Eye on the Budget.
Be more diligent in how you are spending money. It’s important to be frugal and aware of your income and expenses. By doing a line item cost for each expense, you will be able to identify areas that need greater attention. It’s also important to get a handle on any debt or to manage inventory.
13. Develop Staffing Strategies.
No one wants to layoff people during a rough economy, but there are other options that might better suit your business operations. Consider reducing hours, shortening the workweek, or job sharing. You might also want to introduce incentive strategies that award employees for generating business or reducing expenses.
14. Tap Into New Marketing Opportunities.
Many great entrepreneur ideas come out of adversity. For example, a joint marketing campaign with another entrepreneur that offers a product or service that complements yours without competing with it is one proven way to grow a business. Another affordable marketing effort is a text messaging campaign. Utilize all forms of media when brainstorming ideas.
15. Enhance Sales, Distribution and Customer Service.
Focus your support on the areas of your business that bring in customers and retain them. Develop cross selling ideas to help your sales force, implement measures to ensure customer service goes above and beyond customer expectations, and enhance your distribution methods so that your product or service is delivered as promised. Create ways that make it easier for everyone to do business with you.
The world has faced tough economic times before and many a company has survived and even thrived during them. The successful ones are those that are led by an entrepreneur who understands the value of their business and is proactive in meeting a challenge head on with a positive and motivating attitude.
Do you have anymore tips to add? Leave them in a comment!
Happy Monday! have a great week.
Adam Toren
I think as the economy continues to get worse, there is going to be a continuing focus on what people can do to cut costs and save money.
It seems hard to not look at the economy in a negative light, but it shouldn’t hinder your motivation. It seems like everyone is already engaged in step 12, people are spending less and less. Those other tips you offer are also very valuable, and sometimes people find it tough to change their prices or go out and try to appeal to customers in ways that require them to lose a bit at first, but these are the things that sometimes people have to do in order to get ahead.
After years of not having one, there is finally an article on Wikipedia about JOB SHARING.
It seems rather puzzling that the Wikipedia admins had “community banned” the original author of this article, being that he was clearly capable of this level of talented research and writing. Wikipedia’s loss that they shunned this guy over two years.
I think its pretty apparent that there’s a lot of potential with social media as well. Though I didn’t see it specifically mentioned here, social media can really help business owners connect with their customers, study trends, find new customers, market their product, and position themselves as an authoritative expert in any field — basically social media can help with everything from 3-8.
I recently wrote a post that focused on 38 ways to Find Customers online alone! The possibilities are limitless as far as we know at this point, so business people — especially entrepreneurs — should get involved 911.
This said, social media does take time — but no more time than it takes mingling with other business people at conventions — in fact, it’s at warp speed due to the lack of physical location and meetings.
Read about the 5 Easy Ways to Increase Business During the Recession in 2009 ( http://bit.ly/2utDE5) for specific examples of how you can take advantage of the social media possibilities if you’re interested in standing up to this recession.
Tough times will always pass; Tough entrepreneurs stick around.
Christopher
Dapeem
Managing your cost line effeciently is also a way through hard times, only spending on necessities rather than the wants as well. If you can honestly put your hand on your chest and say you’ve costed everything as efficiently as possible, then you deserve praise.
If you could do better - then do it! better now than later.