Make Your Business Thrive In A Bad Economy April 8, 2009
Six tips for small businesses during tough economic times
Despite the depressing reality of our current economic climate, small businesses can still survive and, yes, flourish. While many large corporations must take time to adapt and change, small businesses can quickly adapt and make necessary changes. Below are six helpful tips for small businesses during tough economic times.
Differentiate!
Perhaps the most important thing for a small business to do, regardless of the current economic climate, is to continually focus on and analyze its core competencies, including differentiators. You must be able to describe, in simple terms, how your product or service is better than or different from the competition. Once you’ve determined what sets your business apart, tailor all of your marketing to highlight these intangibles.
Know Your Customer Base
In order for a small business to protect itself during an economic downturn, it must know its customer base inside and out. Knowing who your customers are and WHY they are loyal to your business makes selling your product or service much easier. Customer surveys are a good way to get this information. Once you receive helpful feedback, you can direct marketing to similar demographics who may find your product or service useful.
Provide the Best Customer Service
One advantage that small businesses have over large companies is their ability to offer superior customer service. During tough economic times, show customers that you appreciate their loyalty. Greet them by name. Give personal service. Be friendly and genuine. As many small business owners focus on a single area of expertise, use that knowledge to fulfill the needs of your customers in ways larger companies cannot.
Watch Your Cash Flow
When times are tough, small business owners should prepare cash flow projections for upcoming time intervals, e.g. next year, next quarter, and if you’re on really shaky ground, next month. An accurate forecast of your cash flow can alert you to trouble before it strikes. If you decide to cut costs, do so with a light hand. Trimming the fat can help control spending and generate profits, but don’t go overboard and limit your business in the process.
Keep Employees Motivated
In order to keep your staff motivated and maintain a competitive environment during hard economic times, offer an incentive plan, such as a day off with pay or a monthly bonus to the Employee of the Month. Employees will want to work harder, not only to keep their jobs during tight times, but to also be recognized for their hard work.
Find More Cost-Effective Ways of Marketing & Networking
It’s time to think outside the box. Use creative promotional campaigns, such as giveaways, to promote your product or service and generate buzz. And don’t forget to take advantage of inexpensive Web advertising and networking sites, such as Sta.rtUp.Biz and Merchant Circle. Here, small business owners can create online profiles that include basic information about their business. Be sure to take advantage of these services and other online marketing techniques.
