How quickly things change… one minute you are talking about managing growth in the face of a tight labour market and the next you are in the war room devising strategies for surviving an economic collapse. The suddenness of this about-face in fortunes would be funny or at least ironic if it was not so real!
So, after the shock and awe of it all had subsided, what are some of the strategies you can use to not only survive, but continue to thrive and grow your business during tough economic times?
Communicate
Small business tend to operate like extended families and as a consequence benefit from little separation between management and staff. With that said, call a meeting with staff to discuss the general situation, and allow them to be part of the solution. You may be surprised at just how perceptive everyone is and you stand the chance of being surprised by a suggestion you had never thought of.
Reach Out
Start talking to clients and suppliers to gauge the general feeling in the marketplace. Renew and strengthen relationships within professional associations for your particular industry. A system of support is essential in navigating choppy waters. The expression, a problem shared is a problem halved rings true.
Focus on What Is Working
By focusing on what is positive or working in your business you may be better able to realize opportunities. It is also helpful to remember the 80/20 rule. The 80/20 Rule roughly stated is that you do 80 percent of your business with 20 percent of your clients. So, shore up those relationships and focus on selling more to them.
Preserve Cash and Join a Trade Bank or Barter Group
Trade Banks are a great way to meet potential clients, contract for goods or services your business needs now, but may not be in a position to purchase. Participants in a Barter Group issue certificates that operate much like any hard currency. Contact your local Better Business Bureau or Chamber of Commerce to inquire about barter groups in your city or region.
Continue Marketing
Marketing budgets are often one of the first things to be cut when money becomes scarce, but you should look at increasing your budget instead. It is safe to assume that your competition is ramping up their marketing campaign. If you do not have a comprehensive marketing plan, now is the time to make one.
Look for Opportunities
Even in tough economic times opportunities will present themselves. Try not be so absorbed with bad news that you fail to recognize the good opportunities that will just as surely present themselves. Swimming against the tide is difficult under a normal business, but this is where fortunes are made.
Blaine Arnot is the creative side of a catering company he owns with his wife Donna Wadsworth. Find more interesting catering tips and information on our website.