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:
a) Have
industries and styles of production changed since you started business?
b) Have you
kept up with the changes? If not, what changes should you implement to make
your business competitive again?
c) 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.
d) What is the
best way to deliver solutions to them?
e) What is going to bring in the most profit?
f) 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
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