Recession? Don’t Panic

Whether we are in a recession or not is debatable. Some refer to the state of our economy as an economic slowdown. Regardless, economic ups and downs are a normal part of the business cycle business people have to put up with. What you do now to cope with the current economic situation may also help you in the future when things turn around.

Whether we are in a recession or not is debatable. Some refer to the state of our economy as an economic slowdown. Regardless, economic ups and downs are a normal part of the business cycle business people have to put up with. What you do now to cope with the current economic situation may also help you in the future when things turn around. Whether we are in a recession or not is debatable. Some refer to the state of our economy as an economic slowdown. Regardless, economic ups and downs are a normal part of the business cycle business people have to put up with. What you do now to cope with the current economic situation may also help you in the future when things turn around. Following are a few ideas you can use now to survive the short term and prosper in the long term. See which suggestions can be used by your business or your current situation.

• Hold Prices – You may be thinking of cutting your prices and sacrificing profits to get sales but you’ll be better off holding prices. If you lower prices now, customers will expect that lower price again in the future when conditions change. Staying firm on prices will also show customers that your business is stable.
• Keep Mailing – Direct mail has always been a reasonable priced way to get your information and offers in front of your prospects. If your competitors have cut back on mailing yours will have a better chance of being seen, read and acted on. Try to target your mailing lists to the most likely people to buy from you.
• Reduce Costs – Don’t turn the heat and A/C off but save where you can on office or factory cost. Take fewer trips and ask employees for ideas to help save money and secure their jobs. Search for new suppliers of your products which can also increase sales.
• Tight Inventory – Keep any inventory at the lowest level you can and still provide quality service for customers. Overstocking now is money sitting idle and could be used for cash flow and bills.
• Keep Taxes Current – As tough as it can be to pay those payroll and sales tax bills, it’s wise to keep them as current as possible. Wait until the final day, but pay them on time and save those wasteful penalties and interest.
• Network More – Join the Chamber and other business groups to get word-of-mouth advertising. Offer to speak or demonstrate products at the meeting for no fee. Donate your time to groups where your customers may also be and create good will.
• Reduce Fixed Expenses – Contact phone and cell companies to see what new packages are available. Your merchant service provider may also have a new fee structure you can save with.
• Tourist Business – If our dollar is worth less in the world financial markets then tourists will visit the USA to cash in on it. Find ways of enticing them to your business and capture the extra sales. Many are not looking for the lowest price but the best products and service.
• Keep Cash Flowing – Ask suppliers to give you 5 or 10 extra days to pay them and try to renegotiate any fixed contracts. Offer payment discounts to your customers for early payment or even prepayment. Ask for deposits from new customers.
• Find New Customers – Think about prospects for your product or service that are less affected by the current economic conditions. Check the library for directories of new prospects then mail or call them. You may find a whole new industry group that you overlooked before.
• No Discount Wars – Don’t be lured into a sale or a discount war by your competitors. Offer discounts and special prices (temporary) only when you can add new customers who will become repeat business. Price wars can hurt your business more than it can help.
• Don’t Panic – Tough times will pass if you watch your cash flow and make a few adjustments. Remember how miserable you feel when you get the flu, but it goes away and you feel better again. The same is true of a business slowdown. It won’t last forever and the businesses that don’t panic will get through it.

Many of these ideas are good practice during any economic period and will help your business grow faster and more profitably. Don’t run away or stick your head in the sand because it won’t change the situation or conditions. It’s like riding a wild horse that becomes tame once it sees who is in charge. Take charge and make the decisions that will help your business survive and become stronger. Many lessons can be learned from economic slowdowns that will allow you to make it through and even become more profitable. The sun will always come out after a rainy day! By Barry Thomsen – entrepreneur, speaker, consultant and author of the upcoming book, The Jelly Bean Principle: 100 Ways to Stay Ahead of Competitors. 877-700-1322