Presented By:
Michael J. Cronin

Since the economy fell apart late last year I have been asked the same question over and over again, “My business is so slow….what should I be doing now?”. Whether business is slow due to an economic downturn, a cyclical business, summer or a holiday season, my advice is the same. When sales are dropping, as business people we tend to rush right out there and do something quick to fix it. While this is a great attitude, the actions we take are often not very well thought out. In the case of cyclical businesses, summer and holiday slow-downs, they should not be a surprise. We should know when they occur and have a plan in place to handle their effects. Although economic down-turns are a little harder to manage, the basic principals remain valid.

Assuming that there is no other reason for the slow-down in business, such as product change, a new competitor, poor customer interface activity, lack of a well-oiled marketing process, etc, a business should focus on three main activities: maintain current customers, increase exposure, and position for the future.

It is well documented that it costs five times more to gain a new customer than to maintain a current one. This is the time to really focus on your customers. Make sure they’re happy, not just satisfied, and getting everything they want that you can provide. Find solutions or suggest options for them, even if it is outside your business. Become more than just a vendor. Become an invaluable resource. Use them for solid referrals and testimonials. Gather information from them about what they want in the future, how to improve, etc. Make sure you are selling them everything you can. You have already invested in this relationship, so maximize its use.

In the area of exposure, you should always get your business out there, but even more so when business slows. During hard times, most companies stop advertising, which is exactly the opposite of what should be done. It is during these times that business is harder to gain; some businesses will fail or severely reduce operations. Take advantage of this by making sure everyone knows you are in business and ready to do business. Build or strengthen your relationships so you can use them more effectively later.

Position your business for the future. The economy will eventually recover so make sure you are ready to grow during the upswing. Study and analyze your sales data, gain knowledge in your markets, train yourself and your people, design and pre-build upcoming market campaigns, do some strategic planning and make decisions that have been put off. These are activities we should do all the time, but often don’t get done due to time issues. When business starts to recover, you must be ready if you want to pick up market share and take advantage of the upswing.

Finally, remember that these downturns happen and in many cases there is not a lot you can do to stop them from impacting your business. All you can realistically do is have plans in place to manage them as best you can. If people are on vacation, they are not in the office buying things and making decisions. If a business is cash strapped, they cannot simply print more money. You will not be able to change these realities. Of course, this doesn’t mean you should just roll over. However, do have realistic expectations and give yourself permission to admit that there are some things you cannot change at this point. Plan for and manage your business during these times. A rash response in an effort to “do something quickly” will
rarely help.

To learn more about the Buying-Selling Process and how it can benefit your business,  please contact ResTech Solutions at (484) 883-2707 or mjcronin@restechsolutions.com.

Michael J. Cronin founded ResTech Solutions, LLC in 2002 after 15 years in the corporate world. He has hands-on experience in a number of functional areas and has worked with both domestic and international organizations. ResTech Solutions prides itself on the development of practical, cost-effective programs for its clients. For more information or to schedule a complimentary consultation, please contact Michael at (484) 883-2707 or mjcronin@restechsolutions.com