Major brands such as IHOP, KRAFT and Fortune Magazine have shown us that a company can thrive and even re-invent itself in an economic downturn. Their success stories apply to business in Michiana?
Keeping your composure in addition to providing quality customer services –the core of any business success—will help you navigate this economic downturn. This article will guide you to the other side of the recession –the non-gloom and doom side—with ten ways to keep your composure amidst the anxiety that comes with economic downturns.
10 Do’s and Don’ts for Keeping Your Cool in this Recession
- Do not panic. The biggest mistake that businesses both large and small encounter is to decide in a panic. The sight of rising costs and falling revenues sends many managers and CEO’s, to their balance sheets with a pair of scissors.
- Do not cut your budgets. Losing employees and entire departments is the most popular decision to such decision-makers. It is also the worst. Cutting staff reduces the company’s ability to function, often leading to sacrifices in customer service and product quality…and thus a slow and painful loss of more customers.
- Keep Marketing. Advertising, public relations and marketing are the first departments to see cuts. Many companies fail to realize that a recession is the best time to build your brand name and reputation. The advertising playing field is levelled because of the companies who must cut ad budgets to stay afloat.
- Do not pull money from ads to cut costs. Businesses and organizations receiving large income from advertising dollars (such as radio stations selling commercials) have seen the inevitable cut of advertising budgets. In order to stem this income loss, companies are cutting the costs of commercials and ad space. If you are able to weather the storm, you can keep the same number and quality of ads for cheaper prices.
- Avoid A La Carte Services. If you must make cuts, try unbundling services. There are no savings in paying for a promotional bundle, when you need only one or two of the services offered in that bundle.
- Haggle for Lower Prices. Again, advertisers are slashing prices to attract and keep customers. If you are looking at having to make cuts, call up the sales rep and try to get a better deal. This also works for distributors, vendors and so on.
- Negotiate for Your Services. Discuss longer invoicing periods, pre-payment discounts and the possibility of a trade for services or products with clients. When the economy is bad, everyone is looking to keep their client list intact. Many are willing to negotiate to keep your business.
- Be Confident. Avoid sending out distress memos, pleas to consumers or any other lament over lost revenues. This gives the impression of instability. It will drive customers away and force vendors and distributors to entertain the idea of labelling your company a financial risk.
- Rely on Business Smarts. While it is important not to panic, it also unwise to maintain frivolous, unnecessary costs. Know when to hold ‘em, but also when to fold em.
- Steer Clear of Sweepstakes/Rebates sweepstakes/rebate camp. These items are just ways to disguise prices that are often out of sync with the competition. Rebates also falsely advertisement a discount when there really isn’t one. However, these are gimmicks that many companies turn to in order to attract customers.
There are more ways and reasons to keep your composure during a recession. These ten tools should give you a general idea of some of the major mistakes that prevent companies from surviving a recession.
[...] Ernsting presents Thriving in a Recession: Tools for Success posted at FinditLocal411 Blog, saying, “The recession has been hard on many families and [...]
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