While our economy may not officially be in recession, many business owners and their customers are certainly beginning to be affected by the negative media – and many are taking action by tightening budgets and cutting back on their purchases.However, the slowdown in business presents quite a unique opportunity for small business owners, in addition to increased challenges. As more businesses are turning to business coaching as the better way to improve their companies, many owners are realising a greater number of positives than negatives in the current economic situation.
As a Business Coach I recognise the potential for small business to grow and get ready for the next expansion – even in a slowdown, and more money can be made in a slowdown leading into the next expansion than is made in a boom.
From a financial perspective, businesses should focus on controlling the “cash gap” (closing the “float” between accounts receivables and accounts payables); collecting outstanding payables; revising current terms with creditors (creating payment plans if necessary) and finding ways to increase profit margins while cutting some costs – realising most businesses can only cut costs so much before affecting overall operations.
From a marketing perspective, businesses should focus on developing or expanding marketing efforts. This includes a variety of low-cost marketing strategies (referral-based marketing, “test and measure” advertising, customer surveys to adjust stock/inventories to higher margin or higher volume products) and defining a Unique Selling Proposition (USP) that defines and differentiates the business in its specific market. After all… unless you own 100% of the market “pie” already you can work to increase your share of the “pie” no matter how big it currently is. e.g. if you have15% of the market you would still double your business if you captured only 30% of the total market.
Finally, from a delivery and distribution perspective, businesses should focus on the overall customer service experience, from front-line team members, to making it easier for customers to buy, to allowing a guarantee products or services.
Many large businesses were started in a slowdown by owners who looked at the world differently than conventional wisdom or the media narrative. ActionCOACH is a good example of that. Our CEO (Brad Sugars) started the company in 1993 during a slowdown in Australia, and expanded to Singapore during the midst of the Asian credit crisis in the late 1990′s.
There is no better time than right now for owners or would-be entrepreneurs to get their businesses on track.
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