MAKING YOUR BUSINESS SURVIVE IN THE MIDST OF BAD ECONOMY

MAKING YOUR BUSINESS SURVIVE IN THE MIDST OF BAD ECONOMY

 

Has your business fallen on tough times? Has the sluggish economy or changes in market trend reduced your sales, making it hard to make a profit?  Blaming the economy or government will not help your business recover. To recover you need to take action and make changes. The good news is that survival in a harsh economic environment is possible if certain drastic steps are taken; you need not be paranoid. Running a business is never a sure bet, the economic situation sometimes gets very unbearable, making cost of living go high with a corresponding fall in the standard of living of citizens, leaving you and your business in hot waters as you struggle for survival. How can you get ahead when your business is beginning to show signs of collapse?

Here are strategies you can use to put your business back on track to success.

·        Business Reinvestment:

 

You do not have to be a big, high-tech company to reinvent your business. In fact, the smaller your business is, the faster you can shift gears and zoom back into action. Take a critical look at your strengths and weaknesses and possible markets. Find out if your customers still want and buy the same type of products or services you sell. ASK 

YOURSELF THESE QUESTIONS:

    Have industries and styles of production changed since you started business?

   Have you kept up with the changes? If not, what changes should you implement to make your business competitive again? 

  Do you need to develop new products or services? Do not guess at what customers want and will pay for. Analyze your existing sales and talk to living, breathing prospects.

  What is the best way to deliver solutions to them?

  What is going to bring in the most profit?

    Is there any particular niche that buys regularly from you now? If so, consider how you can bring in more of the same types of customers, and what other merchandise they would be likely to buy. 

·        Reduce your operational cost:

Another way to ensure that your business survives in a harsh economic environment is to look at areas in your business operations where you can cut down cost without having a negative effect on the outputs produced.  Identifying less expensive alternatives, reducing operational cost by practicing downsizing, which is cutting down on your work force, would go a long way to ensuring that your business survives the harsh economy.

·        Be Internet friendly:

Have you ever sold your product online? If not, why not? If your sales are declining and you are still telling yourself that your customers do not shop online then you are wrong. The few customers that you have left may not be internet friendly, but the rest of the world does. Even when people buy in person or because of personal relationships, they are likely to research the products, company or consultant online before making a decision on what to buy and from whom to buy it.

·        Contact competitors of present or former customers:

If a company needs what you sell, there is every tendency that their competitors do too. Industry groups you belong to, trade, seminars and friends in the industry can help you identify likely prospects. If the people you meet do not need your services, ask if they can put you in touch with someone in their company who can.

·        Sell Additional Products And Services To Existing Customers:

Often the easiest way to bring in new business is to sell more to your existing customers. You may be able to sell more of the same product to the same contact, or sell the same product to a different division of the company. Or, you may be able to sell related products and services to the customer. Keep your eyes and ears open for new opportunities, and be sure your customers are aware of all of your capabilities.

    Prioritize And Act:

As you review your business, you may see those areas where your business requires changes. The key to making those changes is to list the needs to be done and estimate what effect each change will have on the sales and profit. Then prioritize the list. What are the easiest ways to increase profit the most quickly? What should you be doing on a long-term basis to ensure your business continues to grow and prosper? Revise your business plan based on the answers you will get and then start to work your plan.

By: Okoye Chizzy