Five Tips to Keep Your Business Viable During the Economic Slowdown
No-one knows for sure where the economic crisis will take us over the coming months and years, but I think it's safe to say we're going to be suffering for quite a while.
As a small business owner, you are closer to your staff and your customers than large corporations, and you should see this as an advantage. Let me go through some general tips on how to approach running your business during these troubled times.
1) Think outside the box. When revenues slow down and the outlook for the future is gloomy, your first instinct will naturally be to take caution. But sometimes, if you're smart about it, risk-taking isn't necessarily irresponsible during a recession.
You can still make adaptations to your business, even significant restructuring of your business plan, without spending a pretty penny in the process.
Be creative; brainstorm new ideas. Maybe try using some of the social websites like YouTube, Facebook, or MySpace to reach out to your local community online. You can focus on developing your local search marketing on the internet search engines or do some joint venture projects with other local merchants in your area. Necessity is the mother of invention! Producing innovative ideas to help navigate your business through rough times and weak performing periods is not only proactive and may produce improvements and cost-saving. It can also keep your spirits up.
There's always a chance you might make mistakes. Realistically assessing what you can and cannot afford to risk is a constant aspect of running a business.
2) Be a leader. Project confidence and a steady hand. The economy is teetering on the brink, and people are rightly nervous. It's easy to see that they would gravitate toward someone who is assured and optimistic, somebody who is interested in solving problems instead of worrying and brooding.
Both your staff and your customers will respond to this. You might need to make tough decisions, such as cutting staff, or changing your business operations in a manner people could find disruptive.
If they look to you as a leader they can trust, it will minimize their anxieties and help maintain morale.
3) Motivate your employees.. It is crucial to sustain morale, and nurture a sense of productivity.
Decline in business in a troubled economy, when people sense their jobs might not be safe, will cause considerable stress. But these tough times don't have to be times of stagnation and despair. Morale can suffer, especially if others have lost their jobs. Make your staff appreciate they are contributing to a common goal by asking their opinions and scheduling regular meetings to keep them in the loop.
I mentioned brainstorming in an earlier point. Your workers can and should contribute to that process. People who have a direct stake in the operation are an excellent source of ideas.
4) Keep your customers in the loop. Maintaining contact with your existing roster of customers is of enormous importance when the economy is unstable. It's good to remember that they are feeling the pinch as much as you are, and will appreciate that you understand their insecurity. Use your contact information to maintain open lines of communication with your customers, sending updates through email or snail-mail on any changes your business might be making.
Use real time communications like Twitter to stay in touch with your customers (see Twitter for Business for more on Twitter). Regularly update your website with postings about ways your company is dealing with the economy and addressing customers' needs. Don't act like it's business as usual if it isn't.
If you respect the intelligence of your customers and are honest with them you will keep their trust. Don't get me wrong: your customers need to know that despite any difficulties, your business is still strong and well-functioning, and will remain responsive to their concerns.
5) Do everything you can to make your customers keep doing business with you.
No matter how well your business is doing, customers respond very positively to deals and rewards for their continued patronage. It is important that you have some sort of loyalty program that can track and reward your loyal customers. And when they are pinching pennies, special offers to regular and long-term customers will mean even more, giving you a competitive edge and increased loyalty.
So in summary: if you maintain a positive attitude, project leadership, team up with your employees to promote innovative ideas and morale, and interact with your customers to encourage loyalty and respond to their various concerns, you have a better chance of not only handling the turbulent economy, but thriving in it.