As we are all very aware, we are going through one of the most challenging periods for business since the Great Depression in the 1930s. Unemployment is increasing at a dramatic rate, and businesses are going bankrupt every day. When we find ourselves in situations like these, then we need to start looking closely at our business and search for ways where we can really maximise our revenues and cash flow.
In this article I am going to look at what I consider to be 4 Key areas to focus on in times like these - that being said, they are critical areas for any business at any time. Get a grip on these areas and you will give yourself the best possible chance to survive in the tough times and really prosper in the good times.
Communication
How you communicate internally and externally is crucial, both your employees and your customers need and want to hear reassuring messages and to see you acting in a positive and strong fashion. It's all too easy in difficult times to fall into a sort of paralysis and to reduce your visibility both internally and to your customers ............don't !!
In times of crisis it is imperative that you have a clear communication strategy for your internal and external customers. Your employees may be worried about their jobs and their prospects, and your silence will do nothing to conquer their fears. If they are worried or concerned, rumours will start, and before you know it productivity will go down and the strongest ones will start looking elsewhere for the security and reassurance that they seek.
The information that your customers are receiving - if it doesn't come from you, will be from the media and the rumour mill, and all too often if they have nothing to persuade them otherwise, you will be lumped in with everyone else in your sector or industry, and before you know it, the trust and reputation that you have spent years building up will be gone.
Even worse than no communication is a poor communication, so make sure that you communicate early, often and be as clear as possible. Do not be tempted to save some money by reducing your communication - this is a false economy. It doesn't have to be expensive to communicate nowadays, as there are many inexpensive ways to communicate with your staff and customers. Look to online media such as Intranets, Blogs, and Ezines or in the case of staff, talk directly to them, and work with them to generate ideas that will enhance your business and make you stronger. Now is not the time to keep them isolated and in the dark.
Customers
One fundamental rule in business is that it is far more expensive to go out and get a new customer than it is to keep an existing one. Challenge yourself and ask yourself what you are doing to ensure that you are keeping your existing customers happy and coming back, rather than forgetting about them to focus exclusively on new customers. I'm not saying don't look for new business, I am saying don't sacrifice your existing customers in the search for new ones.
Your current customers already have a positive experience with you and what you do, and they will most likely be far easier to access than new customers. Look for ways to cross-sell, and also search for discounts and special offers. Do you have a structured approach in place for how you will deal with customers after they have placed an order or when you have made a sale? Make customer retention a key platform for your business. How good is your customer service? If you don't know, find out - and fast. In my view, one of the biggest differentiators of businesses is the quality of customer service; sadly it is not that difficult these days to differentiate yourself positively on almost any aspect of customer service. My experience with most businesses and organisations is that customer service is quite commonly poor, and all too often, shocking. It doesn't cost much to put in place policies and procedures that will make your customer service top notch. Trust me, if you do this your customers will notice, and they will come back and be prepared to buy more.
Who are your most valuable customers? Again, many businesses do not know this and they spend lots of time, money and effort on those customers who don't add much to their bottom line. Once you know who the most valuable customers are - focus on them, ditching the least valuable ones if necessary. The Pareto Principle applies to just about every industry I know, in more or less the same way - why spend time, money and effort on those low profit customers when you could be channelling that effort and investment into the most profitable ones.
Marketing
Don't stop spending on marketing. Yes, look at your marketing expenses and what you are getting back, and if it's not viable, look at other ways to do this better. Again, with current technology and approaches you can market effectively without it costing the earth. Sometimes it just takes a bit more effort to evaluate what you are doing and where you are focusing your efforts.
An effective marketing strategy does not need to be expensive, but it does require planning and consistency of approach.
Training
One of the first areas that companies often cut back on is training. I for one cannot understand the rationale for this. If you look at other areas such as sport, if things get tougher and more challenging, you don't tend to see people saying, might as well not bother with the training sessions then, as things are more difficult and the competition is tougher than last year.
Short-sighted companies cut back on their training, but the clever ones see this time as an opportunity to make themselves more effective and competent, so they can better survive the downturn and make the most of the inevitable upturn. Like the other areas, challenge yourself as to whether you're doing the right things and are getting good value for your money from the training that you're doing - but don't slash your training budget. If your staff are well trained and effective, not only will they feel more motivated and reassured about their job security, but they might just win more business and retain your existing customers a bit better than the next guy.
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