2008 is off to a dismal start, with the stock market
performing at historical lows. Non-manufacturing production
has dropped to its lowest levels since the 9/11 terrorist
attacks, and Federal Chairman Bernanke has not been upbeat
about the economy in either his words or actions,
especially as he announced a historical intersession rate
cut...before he implemented yet another rate cut.
Consumers, laden with the disaster of variable rate
mortgages, are tightening their belts, with dismal
Christmas sales indicative of shrinking expendable income.
With the economic walls falling all around America, many
business owners are asking, "How can I keep my business
growing, or at least stable, during a recession?"
Growing a company during a recession is not easy, but there
are several strategies you can enact to ensure that your
cash flow remains stable amidst the economic downturn:
*Evaluate your expenditures: Just as it is important to
grow your revenues, managing your expenses is equally
critical to your financial success. As consumers tighten
their belts, you may want to consider tightening your
business' belt too. Thoroughly evaluate all of your
business expenditures, and you will find that marketing and
advertising often take up most of your working capital.
Are all of your marketing avenues working effectively for
you? Do you enjoy high ROI equally on all of your options?
If not, it is time to cut the fat - stop the bleeding on
those marketing strategies that are not producing top
results. Those funds are better spent on more productive
campaigns - or better kept in your own pocket.
*Offer discounts to your clients: As economic times grow
harder for consumers, offering discounts and sales to your
customers is an excellent way to motivate them to spend.
Research shows that consumers are much more inclined to buy
when they think they are getting a great "deal," and if you
give that deal to them, you can increase the volume of your
sales. You may want to reconsider your business strategy
during a recession; instead of holding high pricing and
requiring lower volume, you could change your model to
incorporate low pricing but higher volume to maintain or
even grow your revenues. In times of recessions, all of the
major discount retailers grow - and you can too.
*Ask for customer feedback: Economic conditions cause
customers to reevaluate their own needs. Sending out a
survey - coupled with a drawing for a free product or gift
certificate - is a great way to gauge what your customers
need. Based upon this information, you can meet their needs
accordingly, while maintaining the prosperity of your
business revenues.
*Find a joint venture or strategic alliance: Teaming up
with another business that has similar synergies to yours
is a great way to increase your client list and marketing
campaign - without incurring any additional cost. Many
businesses decide to scale back on traditional advertising,
saving thousands of dollars, while engaging in strategic
alliances that can generate significant sales leads and
increased revenues.
Although 2008 may not bode well for the economy, you can
still ensure the growth and prosperity of your business by
making smart decisions, both when it comes to generating
customer interest in your product or service, as well as
managing your operating costs.
----------------------------------------------------
Christian Fea is a Collaboration Marketing Strategist. He
empowers business owners to discover how to implement
Integration, Alliance, and Joint Ventures marketing tactics
to solve their specific business challenges. He
demonstrates how you can create your own Collaboration
Marketing Strategy to increase your new sales, conversation
rates, and repeat business. He can be reached at:
http://www.christianfea.com
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