If you are tired of hearing in regards to the recession or the potential of a double dip recession due to foreign markets crashing now, Listen up. It does not matter. Recession or not you will need to perform your business well. You must be a real estate agent of convenience for your best target customer, manage cash flow with military precision and pay attention to the trends in your industry. This can be a perfect time for an aggressive small business. No matter what your business does, if you build a much better mousetrap, the entire world will beat a path to your door. To be able to beat the recession, you have to get smart about your marketing and business operations.
Listed below are 10 tips about strategic marketing and cash management to recession proof your small business.
- Keep marketing. Don’t be tempted to cut or eliminate marketing activities. This really is no time to scale back on marketing. In the event that you can’t afford a full-blown marketing campaign, pursue low-cost options such as for instance social networking marketing, webinars, news releases, e-mail blasts, blogging, and online newsletters. Be sure to keep your marketing activities going at the very least 6 months so that you can track your rate of return.
- Develop 30-day sales goals. Do not focus on sales activities beyond 30 days. You should breakdown just how many sales you will need to close each month to generally meet your revenue goals. Determine just how many meetings, calls, emails and blog posts you need to have, make, send or write to generate your target sales. You must keep the sales engine rolling in your business.You need to be doing at the very least 60 minutes of sales cultivation activities per day.
- Cut expenses and track cash carefully. It is very important for you really to understand your monthly burn rate and your cash position. Determine where you are able to cut costs, and make sure on a weekly basis that you understand what money is coming in. As you cut costs use this formula, for every $2 dollars you cut running a business expenses, invest $1 into your marketing efforts.
- Start collections at 30 days past due. The days of waiting 45-90 days for payments are over. You’ll need your cash now. Once a customer gets to 30 days past due, get on the phone and track down the accounts payable manager for an update. Make sure you are set as much as take charge cards, you might get paid a whole lot faster.
- Improve communications with your customers. Have quarterly face-to-face meetings or lunches with your top customers. Understand their biggest business challenges and search for ways you can help even if that doesn’t involve more direct business for you. Consider keeping your fees the exact same for long-term customers if they’re really having financial difficulty.
- Add value, not price. Continuously adding value to your and services is the best way to get repeat customers and new business through referrals. Adding price without value is a lose/lose proposition. You may get the reorder, but your client will start looking for a replacement vendor.
- Under Promise and Over Deliver. Excellent customer support is the main method to beat the recession. Should you a best wishes and your visitors love dealing with you, your visitors will become an unpaid sales force for your business. If do great work, are highly responsive if there’s a concern, make follow-up calls, send many thanks cards, throw in little extras all that demonstrates to you care. It is also the best way to encourage your visitors to refer you more business. Be noted for delivering great products and services. Don’t treat your visitors like you are doing a favor.
- Network, network, network online and offline. People do business with people they like, know and trust. You’ll need to be sure people know who you are, everything you do and how to do business with you. You intend to be top of mind when an opportunity presents itself. One of the finest approaches to so this really is using social media. You can network online without being considered spam. Use Twitter and Facebook Fan Pages to offer out helpful advice. Consider updating your LinkedIn profile regularly with updates on your business and/or any signature content such as for instance blog posts. Once you meet a new contact, online or personally think solutions for them first. Successful networking is about give to get.
- Consider adding staff. One a valuable thing of a recession is there are lots good people are available on the market looking for a job. You could grab some quality talent at this time that you may not otherwise afford. Consider hiring a merchant and pay them commission only. Make sure they are kill what they eat. Also make sure to think of exact what target market they’ll focus on and how success is going to be measured. When you yourself have never hired a member of staff here is a recent post that will give you some suggestions on the interview process.
- Call the bank before things great critical. Good relationships are created in hard times. Irrespective of your business situation, you will need to communicate with your bank sooner rather than later. The financial institution doesn’t benefit if you walk out business, so stop the denial and negotiate better terms with your bank.
The other day, I spoke with FedEx Office® during a live Tweet Chat #FedExSmallBiz about approaches to recession proof a tiny business. Take a look at the transcript from part among their Boost Your Small Business Tweet Chat series.