How to Survive and Thrive Through and Economic Downturn
Since 1960, there have been eight recessions. These have varied in depth, duration and impact to the economy and business owners. There are two things that are common threads that have affected business owners for decades. First, those who prepare, act fast and adapt will survive. Secondly, those who search for opportunity for growth, increased market share and new products and services will thrive coming out of a downturn.
Notes from our session:
Questions to ask now
-How will my business be affected?
-What can I (or should I) do now?
-What can I control?
-What upside opportunities exist?
Sales and Marketing
-"Sell" through" - every stage of funnel
-Invest in marketing (accelerate spending)
-Dig into and optimize sales processes and people
-Leverage strengths/mitigate weaknesses
-Identify weak competitors --> attack
-Guerilla marketing
People
-Make hard decisions sooner rather than later
-Watch the data - Every decision counts, don’t get it wrong
-Talk to "old people", find a peer group
-Elevate A's / Coach up or out B's/ Fire C's (now)
Cost Containment
-Rebudget/reprice-long game
-Cut costs, then cut 5% more (www.tomcuthbert.com/costcutting)
-Build new partnerships (bank, suppliers...)
-Ask for extensions/negotiate terms/concessions
-Less fixed costs/ more variable (comp)
-Preserve cash, leverage “affordable” debt
Customers / Clients
-Invest/focus on client retention
-Remove clients that don’t fit your “Ideal Client Profile”
-Review and strengthen contracts
Industries that have historically thrived during a recession
Grocery, Discount stores, Healthcare, Accountants and CPAs, Rental agents and Property Management, DIY stores, Auto Maintenance and Repair, Financial Advisors