Dear
E-Myth
Reader,
What are the best ways to keep the wheels of commerce turning during an economic downturn? Should businesses
spend more on advertising, print more sales collateral and attend more trade shows? While these methods have
their merits, other mechanisms are more likely to produce results when things are slow. We discuss some
important ways to keep your business on track in tough times.
Ways to Weather an Economic Downturn
Reactivate Your Leads
While you might wait for customers to come to the door, consider contacting your existing leads with tailored
product suggestions. A study by the Thomas Publishing Company found that 80 percent of sales to businesses
were made after 5 sales calls, but only 10 percent of salespeople called prospects more than 3 times. Be
persistent.
Strengthen Existing Relationships
Harvard Business School research found that a 5% increase in customer loyalty can lead to 40% to 90% increases
in the lifetime value of that customer relationship. You need to earn your customer's loyalty, so during tough
times consider offering discounts and easing payment schedules. Also consider bundling inexpensive features
into your product line, adding value and potentially adding revenue.
Consider an Acquisition
With customer traffic slowing, consider improving your market position by acquiring a competitor. An economic
slowdown affects everyone, so evaluate not only your business' situation but those of your competitors as well.
With sufficient resources, you may be able to acquire a competitor and improve your market position.
Protect the Core Business
Staff cuts may be necessary to keep your business running, so don't set people up for disappointment.
Communicate realities clearly and objectively, and keep people informed. During severe trauma, a human body
will divert blood to vital organs as a priority; similarly, a business needs to keep its core functions
working.
Fix Your Systems
It is your responsibility to keep your processes running efficiently. Inspect your production cycles for ways
to increase efficiency and value, and scrutinize your supplier and production costs. Understand your price
points relative to your cost of production, and also estimate those price points for your competition.
Make Strategic Plans
Slow times can present opportunities to work on strategic plans for marketing, product design, website updates,
staff training, equipment repair and building repairs. A slow period could also be a good time to improve your
management skills. E-Myth has an array of business
training programs available to help you work ON your business, not IN it.
Stay Upbeat
A positive attitude can make a difference. Prospects will sense a positive outlook and are more likely to do
business with positive contacts. Business goes through cyclic ups-and-downs; keep your outlook on the upside.
On The Website
You can outsource your staff training with an E-Myth Virtual Training Seminar. We're presenting 2
web-based trainings next week. On Tuesday, 5 February 2008 is The Key Frustrations Process, and on
Thursday, 7 February 2008 is Documenting Systems.
See the full schedule at the Virtual Training Seminars calendar.
Also, check out our product pages for information on
business coaching programs, e-learning courses and additional seminar choices.
Our current poll question is 'Does your business have an Operations Manual that's actually in use?'
Cast your vote anonymously and see the results at the E-Myth website.
Yours Truly,
The E-Myth Team
|
My E-Myth
