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Running your own business during a financial downturn is tough. However, instead of complaining about the state of the global economy this is the time to work smarter, provide better customer service than your competitors and generally go the extra mile to ensure your business continues to be in good shape when the recession is over. The key to this is approaching any situation proactively and with a positive mental attitude.

 

Firstly, take customer service.  Even in financially challenging times, existing customers will be spending to some degree and by providing an excellent service they are more likely to buy from you again and your good reputation will only be enhanced.  At Card Connection our franchisees supply greeting cards to retail outlets, by ensuring the displays are always fresh looking and up-to-date with seasonal product, the retailers sell more stock.  As a result, the store managers are happy to place Card Connection greeting card displays in prominent positions in their shops and even expand their ranges – all of which ultimately lead to higher sales.

 

Up selling to existing customers in this way, is a good way of increasing sales.  In marketing journals it has been stated many times that it is ‘seven times easier to up sell to an existing customer than to gain a new one’.  Keep this in mind!  However, there is no need to be pushy,  simply be sure each customer understands your full portfolio of services and products and that you are available to help them in any way you can.

 

Similarly, it is worth plotting which of your customers are your biggest spenders.  Many businesses find that 80% of their revenue comes from just 20% of their client base and ensuring these key accounts are looked after at all times, will pay dividends.

 

This said, bringing in new business is critically important in a recession as your existing customer base may well shrink due to factors beyond your control.  Only by adopting a proactive approach to new business will you be able to capitalise on the opportunities that are available in the market place.  Consider how you have gained new business in the past and implement similar approaches to attract new customers proactively.  

 

Such campaigns need not be expensive.  Card Connection franchisees for example spend a proportion of their time each week simply calling on retail outlets to see if the store manager would be interested in stocking their products. In this way, during the past six months, one of our franchisees gained an additional 53 retail sites and as a result, has seen a significant uplift in sales despite the recession.

 

Getting organised is also something that needs to be approached proactively.  If business is quieter, and you have some spare time, use it to implement simple systems to make your business run more efficiently.  This may be taking advantage of IT or spreadsheets for example so when the market picks up you are running a well oiled machine that can manage the increase in custom easily.  At Card Connection we have introduced electronic hand held terminals in the past year which allow invoices to be generated on site.  This provides a better level of customer service to retailers and saves franchisees’ admin time which can be spent hunting for new business.

 

Finally, staying positive is key.   When you meet successful business people, their willpower and drive are often the traits that are remembered long afterwards.  Energy and enthusiasm is infectious and is invaluable in customer facing situations.  People buy from people they like and simply ‘being positive’ is an easy step to implement and can have a dramatic effect on how your business is perceived by your customer base.

 

Similarly, don’t let the inevitable disappointments set you back.  Loosing a customer can be demoralizing but currently the market is tough for everyone.  Don’t take it personally and see this as a catalyst to encourage you to go out and win ten new customers.

 

Running your own business in a recession requires hard work, commitment, determination and tenacity but staying positive and being proactive will ensure your business has the best chance of surviving and even thriving in challenging financial times.

 

Article first published on Business Wings BusinessWings.co.uk

 

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