Downturns in the Economy Represents Opportunity

In every economic downturn, many businesses shrink, and some go out of business. While this may be grim news for some, a shakeout can spell opportunity for the survivors. For companies that are on top of their game and react quickly, economically challenging times make well managed companies stronger, and in the future, puts them in a much stronger position to compete and dominate.

Tactics that Spell Success

1. Look to gain market share by reacting quickly to better serve existing customers.
2. Selling is better than ever in a downturn. Potential customers who wouldn't have picked up the phone a year ago will hear you out and be open to competitive quotes. However, to capitalize on this – you need to spend time in the field selling. When the fish are biting, it is time to fish.
3. By knowing customers and offering the right product/service at the right price, and then promoting these differentiators in a down economy, is an opportunity to attract new business by bringing value to your clients.
4. Differentiation is more vital when the economy is soft. Offer value by bundling services. This may mean a small gross margin, but is well worth the effort.
5. Service counts extra during a downturn. By focusing on customer service to keep existing clients, you protect them against price poachers. This will put you in a position to up sell in more stable times in the future.
6. You have to make an impression with new customers. This starts with product knowledge and understanding the customer's needs.
7. Keep an eye on expenses and act sooner rather than later to manage costs.

Downturns are a part of economic cycles. The best way to weather a downturn is to form a realistic plan. While it's tempting to hope for improved economic conditions, "hope is not a strategy." Most importantly, do not get caught in the “black hole” of operations, because it is tempting to be pennywise and pound foolish and cut back too much, leaving the franchisee doing all of the “work work” of the business. Remember your job description: business development director. Remember….top line revenue solves almost any problem.

Staying focused on selling new customers and servicing existing ones is the key to prospering during a downturn.