The stock market is falling, credit is tight, and the predictions for the months ahead get scarier by the minute. It’s enough to make anyone second guess what they’re doing. But don’t let economic doom and gloom hold you back. There’s never been a better take to take action on your business.
When times are tough, it’s twice as important to have a strategy for business success. Don’t let the news send you into a panic, instead, take concrete actions to ensure that your business thrives:
1. Step-up customer service: It’s harder and more expensive to get a new customer than to keep an old one. Make sure your customers and happy and willing to stick with you by staying in close contact with them. Find out how it’s going – are they happy with your service? If not, find out how you can improve. If they are, find ways to add even more value.
2. Market, market, market: I’ve always been an advocate of consistent marketing, even when things are going well, but no one can afford to stop marketing now that the economy is suffering. Make sure your marketing message rings loud and clear. If you’re running ads that aren’t paying off it’s a good time to re-evaluate. Continue to network (or start if you haven’t), and also keep optimizing your website and following thru with everyone in your pipeline.
3. Understand your financial situation: It’s time for all ostriches to take their heads out of the ground! Keep accurate books and records. Keep track of sales revenues and expenses. Take time to focus on your finances and see what needs work, before a crisis develops Look for new ways to improve profitability.
4. Monitor accounts receivables closely: Don’t let overdue accounts slide. If you sell on credit terms, make sure that all of your customers understand what those terms are, and pay promptly. Send out monthly statements, and don’t neglect to make reminder calls when necessary. If someone falls behind, try to get a significant part payment right away and work out a payment plan. Put all accounts in for collection as soon as it becomes obvious that there is a problem.
5. Consider asking for upfront money: These days many businesses don’t sell on credit. Take a look at ways you can improve cash flow and avoid having to chase customers for money by asking for upfront payments or credit card authorizations.
6. Keep your emotions in check: Problems go from bad to worse when our emotions get involved. Don’t lose your head and buy into the fear. Instead, stay centered, and develop realistic goals, a well thought out strategy, and a plan to get there.
Susan Martin, Business Coaching
