A recession brings tough times to everyone. Recessions are part of the economic cycle and have happened many times over the years. The difference is that this time the recession is affecting countries all around the world at the same time and it is on the news all the time. Many fail to face the effects of recession and many succeed. Success comes with the right action and the way you face it.
Business comes from your clients and existing clients are your base. Let them know that they are important to you and that you are always there for them. Always give them special attentions and keep them happy with your services. Keep contacts with them and try to make good relation with. Inform them about latest products and offers available. So whatever you do to get new ones, do not lose sight of your existing customers and their value to your business.
Your customers comes to you for your service and quality products. It is important to provide a variety of products and services to your customers. Study on your products and services, find out the drawbacks, and try & improve all those. Identify your strengths and weaknesses. Strengthen your weaknesses.
Focus on the products and services you specialize in. Put your attention on what gives you value in the marketplace. What are the things that set you apart from your competition? Once you understand your power to attract customers. Popularize it and get the advantage of it. It is easier to up-sell current clients than it is to attract new clients. So take a look at your current offerings to discover opportunities for new products and services that serve the needs of your market.
Your value increases from the quality of product and the excellence of service you provide to your customers. Customers are more attracted towards a good service. Study you competitors, their services and the quality of products they serve. Always give your best and you will get equally good results. Be an expert in your field and being an expert means your cash flow will increase, you can command more for what you do, and more people will be willing to buy from you.
It is vital in times of recession that you and your business are very visible to existing clients and potential new customers. During recession when all decrease on marketing you focus on it. Because marketing is a vital tool at this time not a luxury, so ensure your profile is out there and build a powerful presence. Take full advantage of low cost and free eMarketing tools and be strategic in using off-line marketing resources. Develop a strategic plan of action for becoming more visible.
During recession, consumers are hunting for the best way to get more for their money. People look for value, and a discount is the simplest way to deliver it. Provide your customers with complimentary gifts. It adds value by giving something away. This can help you justify a higher price if you are unable to offer a hefty discount.
Offering alternate payment options such as extended payment plan can also help you a lot during recession. During such time there is a short hand on money for everyone, by providing such schemes would allow your customers to manage their money properly with time. This will also benefit you even if you don’t provide big discounts.
Spare some time to examine your expense. Investigate where every penny you are spending is going. Check if you can sell out things which is not necessary or things on which we are spending but it’s not adding to your benefit. You can cut costs without customers even noticing and without it affecting their high levels of customer service. Always be fully aware of the current financial status of your business and how the next few weeks will impact on it, know the current outgoings and expected income. Communicate with your banker. Money is critical to your survival, and a steady flow at that, so it is absolutely vital that you get your invoices out on time and that you get paid for the work /products you have supplied. Good cash flow is critical for your continued survival in this difficult climate and is what will set you apart from the rest.
Credit check is always a good habit for your business. In a recession it is essential that you get credit checks on all your customers. If you have customers who do repeat business with you, get them checked out as well because things can change in their businesses too. Also get a credit check on your suppliers, you cannot afford to spend time and money promoting a product that could disappear or have an intermittent supply line especially at times of recession.
Your staffs are your biggest asset. They are the only one with the help of whom you can make your business succeed. Let your staff contribute their ideas of putting your business ahead. This will make them feel more valued and part of the team and you may be pleasantly surprised about the ideas they come up with. They might also provide you with some great idea which may be very successful and make all the difference, if so remember to reward the person. Show your appreciation, get them involved and other great ideas will come in the future.
People love convenience and will justify a price to get it. People need to feel that they are getting value for the money. This is more important than price. It is not as easy to justify price increases. Instead of lowering prices, creative small business owners are packaging their products and services differently in order to provide a lower price point for their customers. This is a smart move. Instead of lowering your price, make your products and services more affordable by packaging them in smaller, more attractive packages.