Tag: recession

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How to Thrive in a Recession

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Every time I turn on the news I feel like screaming. I am sick and tired of hearing about how bad the economy is. Unemployment is up and is only going to get worse. Banks are in trouble and going under. Real estate is a mess and there is no end in sight. Major corporations are going bankrupt – heck, even the big three automakers may go under.
I hear about how this is the next great depression. I hear about the collapse of the dollar, the collapse of the western world, and the end of society as we know it.
It Isn’t As Bad As It Sounds
The sad part is that it isn’t all that bad. Yes the economy stinks, but this is only when compared to the amazing boom we experienced in the last decade. Companies have been able to go after the low hanging fruit-heck, there was more lying on the ground than you could pick up!
Just because the ground isn’t littered with business anymore doesn’t mean that there isn’t business out there. You just have to work for it. And the past decade of easy business means that most companies have not made the connections and built relationships. Now they pay the price.
And at the end of the day, now is the time where entrepreneurs can really shine.
No, I’m not crazy. Think about what a true entrepreneur does.

  • He connects with his customer
  • identifies his needs and problems
  • then creates products and services to fill those needs or problems

In other words, he gets paid to solve problems
Now more than ever companies are in trouble. Your customer desperately needs you. No, he isn’t spending indiscriminately. But if you solve his problem and help him survive (or thrive) in this downturn he will be your customer for life. And you solve your “slow business” problem at the same time. Only an entrepreneur can do this, and you finally have an advantage over larger companies.
Simple, but Hard to Do
This is a simple concept that is hard to do. I’ve written several articles that are aimed at this:

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Sales & Marketing

Recession Proof Your Sales

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A tale of two companies
The contrast couldn’t be sharper.
Company T had lost it’s direction and was sinking fast. Where sales were once $18M, they ultimately plunged to less than $6M. Where they once set the standard in their industry for customer service, now they were the joke of the town.
Company C was a different breed. It had always been the small respected underdog. At $6M is was a third of company T’s size. Where everyone else in the industry had lost over half their business, they were holding fast and had doubled their customer base. They were poised to exit the recession as a dominant player.
Why was company C thriving in the recession while company T (and the rest of the industry) foundered? They had a strong sales focus. They seized the chance to grow market share. They saw the opportunity to eliminate several bottom feeders that constantly drug down prices.
7 Keys to selling during a recession

  1. Go back to basics
    When things start spinning out of control it is time to reevaluate. What does a good coach work on when his team is slumping? He goes back to basics.
    It isn’t exciting, but think back to your early days when you were learning sales.Take a deep breath, step back, and look at sales 101.
  2. Focus on the customer
    Business starts and ends with your customer. Identify his needs. This becomes the basis for your products/services. No, that doesn’t mean you give away the store. It just means that every aspect of your business needs to support your customer. Anything else is a waste of time and money.
    Most businesses focus on their systems and expense control. Their criteria for all decisions is making their own jobs easier. Guess what…the customer doesn’t care!
  3. Focus on your niche
    This is not the time to try new techniques, find new markets, or launch new products. That is a desperate act that just wastes your time and money. If anything you should actually focus your resources on your top products, services, and markets. Remember, jack of all trades, master of none.
    Take a minute and define your focus. What is your niche market? What are their needs? What are you doing now to service them? What could you do better? How can you dominate your niche and grow your market share?
  4. Increase your sales budget
    Contrary to what your operations manager says you can’t cut your way to a profit. Business starts and ends with the customer. Yes you need to tighten your belt. Expense control is important. Just be smart where you spend your money. Ask the question “will it grow my business?”
    Increase your sales expense budget. Spend more on strategic lunches. Give your top salesman a bonus. Reward your sales support team. Thank your top customers for their loyalty and send them a gift.
    Compare this to what your competition is doing. Right now they are reigning in their salesman. In fact, they probably just fired a few! You stand out and can take market share if you are smart.
  5. Dump the deadbeats
    Fire the bottom 20% of your customers. I can hear the screaming now. “We can’t afford to lose any more business.” This is bunk. These customers take 80% of your time for 20% of the income. Cut them loose and spend your resources on customers you can satisfy!
  6. Guard your customer base
    Right now everyone is hungry. They are eying your customers like a starving wolf eyes a young lamb. Take care of your customer. Give them such value and service that they wouldn’t dream of going elsewhere. Build deep relationships with the key decision makers-remember that the buying decision is emotional. Logic is used to justify the decision.
    Make a list you your customers and rank them. Focus your time and energy on your stars.
  7. Branch out to new accounts
    The flip side of guarding your customers is to go on the attack. Remember that your competition is cutting back on spending. They have let a few salesmen go. The remaining salesmen are overloaded and overworked.
    Make a customer wish list. Look at the competition and identify their top customers to target.

BrandtSmithPhoto.jpgBrandt Smith is a sales, marketing, public speaking, and professional development expert. Learn about achieving wealth and life balance through entrepreneurship at Wealth and Wisdom, where he is cofounder and senior editor. Their advice on wealth building, personal development, and life balance can help take you to the next level. You can also read more of his thoughts on his blog.