In times of an economic slump, when sales plummet to an appalling low, business owners often tend to get discouraged and despondent. They try to find short-cuts to get themselves back in the running. But business experts say that instead of panicking and resorting to desperate measures, they have to begin at the beginning and strategically plan their way back into the game.
So here are some pragmatic tips (rendered by experts) guaranteed to get you back on your feet and help you stage a successful come-back :
1. OUTSIDE ASSISTANCE / AID
Businesses these days are often very closeted and thus, tend to bottle up their crises within their company walls. What they need to do is break free from such sectarian, old-world concepts and reach out to their customers, clients and public for feedback., says Faust. Listening to customers needs and understanding their expectations is crucial in increasing product sales and also helps in developing new kinds of products to suit their preferences.
Alternatively, other involved members such as lawyers, stakeholders, accountants and association members can all provide referrals and help in sustaining the goodwill of the company. They could actively mingle among the customers themselves and thus help in expanding your reach within the market.
2. CUT DOWN ON WHAT REALLY COSTS YOU
The reflex reaction of most employers is to lay off their employees when they are faced with a slump in business. But according to Denise O Berry, a business consultant and author, layoffs are sometimes likely to stifle productivity and growth. Her advice is, Cut down on everything else that you can, before you let people go.
For example, suppose a restaurant is facing a fall in business. Instead of immediately firing its waiters or other staff, on having a closer look at the menu, more often than not, it will be found that only a certain percentage of their standard dishes are ordered by their customers. In such a case, what they need to do is re-structure the menu and cut down on the variety of dishes offered which would significantly lower their cost incurred in business in the form of lesser ingredients.
3. LEARN TO SPECIALIZE AND STAND OUT IN THE CROWD
Victor Cheng, a Washington-based business author explains how businesses should carve a niche for themselves and develop products that are tailor-made for specific customers instead of trying to reach out to all the customers in the market. You need to find out what your customers need and then turn your marketing focus towards products desired by them.
Instead of trying to outplay every competitor out there, pick a smaller slice of the market and target them.
Author: Anjali Pathiyath