How to Survive the Economic Hiccup

There is no denying that we are currently in a global financial decline which is causing people to spend less and companies to produce less. However, this situation does not mean you should throw in the towel or stand still and do nothing until things blow over.

I know people react to uncertainty in different ways, and I have started to see numerous variations. Many solo business owners have started to panic, while others are cutting down their prices. Some are neglecting their current clients, and some are in complete denial. Others are scaling back projections and putting off large purchases and so forth.

Then there is the group (I hope this is the group you fall into) which acknowledges the “recession” – or whatever you want to call it – but also knows this is the best time for their businesses to take action! They have the drive to dominate their given business niche – to thrive in it, not just survive! Which category do you fall in?

Born amid hardship

I think you’ll find the following historic facts interesting. Sixteen of the 30 companies that make up the Dow Jones Industrial Average were started during a recession or depression. They include Procter & Gamble, Disney, Alcoa, McDonald's, General Electric and Johnson & Johnson.

With that food for thought, let me ask you who you are going to emulate? While everyone around you is complaining about how bad the economy is, will you be that solo business owner who meets these hard times by becoming a shrinking violet? Or, will you be the entrepreneur who is going over her battle plans during these lean times – not just to “make it through,” but to propel your business forward dramatically with an increase in wealth.

Now, I don’t want us to kid ourselves into ignoring the shaky economy. I’m not advocating that we act like ostriches with our heads in the sand. It is obvious that lots of people around the country are taking extra precautions when buying services and products. But, I personally know some other high-end business coaches who are filling up the openings in their programs a lot quicker now than when the economy was flourishing!

A plan of action

So, how does their success translate to your situation? Well, these solo-business owners are employing the same tools of trade for successful business owners that I advocate. They have the right mindset and the right growth strategy. They also are making good choices and, most importantly, they are taking action.

Let me share a secret with you. Creating a strategy to help you succeed and thrive in your business no matter what the economic conditions is not complicated, nor does it have to be overwhelming. It just requires a bit of advance planning.

You see, the main reason why some business owners are not being affected very much by today's market is because they have long- and short-term marketing and growth plans. In addition, their short term plans can be quickly shifted around to accommodate day-to-day market fluctuations.

If you have been caught ill-prepared for the current financial turmoil, don’t worry. Today is a new day, a new beginning to remedy your management shortcomings. If you have been inconsistent with marketing planning and have overlooked the establishment of a sound business growth system, I can offer a remedy. I have seven simple and quick tips that you can implement to help you weather these lean times. Starting…NOW!

7 Steps to Weathering the Economic Hurricane

1 ~ Dangle a carrot.

Your current clients are the ideal source for immediate increased revenue. Don’t neglect them! Offer them something special. In hard times, you want to expand your re-sales. The key, though, is to offer them something out-of-this-world tasty. What might that be? With some thought you’ll know. Make it something that your best clients will want more of.

I'm assuming you have a list of your best clients – you know, the ones that buy whatever you produce or offer to them regardless of the fee. (If you don't know who these people are, you need to take time right now to identify them.) Once you have this Golden List, create an irresistible offer that gives them lots of value. Pair it with a healthy fee and then send them a quick email or postcard with your offer.

2 ~ Get by with a little help from your friends.

If you are just starting out, or you don’t have a Golden List yet, then tap someone else's list or attend a local group to quickly promote your services or products. Consider leveraging the trust you have built with other businesswomen to partner with them if they have services that complement your own. By teaming up in a non-competitive way, you can funnel new clients into your circle. This two-way street is one of those refreshing win-win situations in the business world.

3 ~ Feather your nest.

The most common way to gauge your success is by having systems to track everything you do in your business. This will allow you to know which services or products are bringing in the most profits and subsequently how much money you get to keep (your net income). In this economic downturn, having efficient tracking and updated reports helps you weed out corners of your business that are cutting into your net income.

Here are a few ways to increase cash flow and your net income:

• Price your services for profit. Many business owners start cutting their prices, and though this strategy provides more immediate income, it hurts you in the long run. Do not cut your prices; instead increase your value. Even standing in a financial quagmire, people want value. I believe your tactic should be to reduce your customers’ fear of spending and increase value by offering a stronger guarantee, a better return policy, more access to you and/or your staff, a better payment plan and so on.
• Establish invoice systems. You’ll get your money more quickly and consistently.
• Drop projects that are not bringing in money. Go over your reports and either drop or postpone any project that is currently causing cash drain.
• Spend most of your time promoting or selling income-generating services and products.
• Increase efficiency of your marketing dollars Increase marketing tactics (“systems”) that have proven to be profitable. As loyalties loosen, your competitors' customers are more willing to jump ship.
• Add a new marketing channel If you are promoting online, then venture into offline marketing and vice versa. If you are marketing via print, then pick up your cell phone and follow up. Your tactical mix will depend on who you are targeting, but bear in mind those solo business owners who show their tenacity in the coming months will be the ones who increase their market share as competitors drop off. Now is the time for you to extend or complement your existing marketing strategy.
• Find out what your market wants. It’s crucial that you know your clients. Make sure your offer is on target with crystal clear benefits and a distinct, differentiating feature from other aspects of your business. One of the best ways I know to find out what your niche market is willing to buy right now is by conducting a survey. There are different survey types depending on where your customer resides and how they operate. You can run a telephone, email or main page survey. Use the results to craft a unique message, create a new product or service and beat your competition. Hint: When you speak to your clients on the phone, weave in a few fact-finding questions or ask them at the end of your call to do an informal survey. You also can run an email survey to keep costs down, or you can use email combined with a web-based software for surveys. Consider putting up a survey on your main Web page or on your “Thank You” or “Squeeze” pages.

4 ~ That’s so Hot!

Take a quick look at the latest trends (or get your virtual assistant to do it) and identify any new niche market for your services or products. Spotting new, hot trends is a way to tailor your focus on targeting the right set of potential clients. You can diversify by looking into Yahoo Buzz, EBay Pulse, Amazon Best Sellers and other idea-generating sources.

5 ~ “Would You Like a Newsletter with That?”

To generate income, offer relevant products to your clients. …Have you noticed that when you go to a place like Starbucks for your morning cup of coffee, the cheerful barrista always says something like, “Would you like a bagel with that?" It’s a finely honed marketing strategy that you can use with your clients, too. In a very simple but powerful way, you often can persuade them to buy more from you. Over the long haul, this “up-selling” can be very lucrative – even if you don’t have a steaming cup of mocha latte in one hand and a warm Cranberry Bliss Bar in the other.

You can do this easily on your website by setting the up-sell feature on the shopping cart system to offer additional products and services at the end of the initial transaction. For example, when you go to buy a book online on Amazon, you’ll see that powerful prompt “Customers Who Bought This Item Also Bought…” It tempts you to take a peek, just to see what else is out there.

Up-selling can double your business overnight, so ask yourself: “What else can my customers buy from me that offers them more value or a more in-depth solution to their challenges. These can include e-books, tele-seminars, checklists, training systems, a VIP coaching day and paid newsletters.

6~ Follow My Lead! …And you follow Yours.

If you are actively pursuing social networking online, you will have run across numerous potential clients on Facebook or while Tweeting. Other prospects can be found at networking meetings, workshops and in conversations with current clients.

Do you keep an active list and follow up on these leads? (If you don’t have a system in place to track these people, you need one.) For example, at a recent workshop, you might have struck up a conversation with an interesting person who said it would be nice to work with you. Some time has gone by but you have heard nothing. You can let it slide or you can be bold and fearless – even do something crazy like giving them a call when they least expect it.

Here, again we have a win-win situation. You make them feel special that you remembered them and took the time to call. You remind them of your product and services and ask them how you might be able to help them. The next thing you know, you have a new client and instant cash flow. Now, pick up that phone!

7 ~ Converting More Prospects.

Many business owners make the mistake of focusing too heavily on generating more traffic to their websites. Yes, you do need good traffic, but too many fail to follow the path to profit which is populated by people who have already visited your site, but have not been privy to follow-up.

I challenge you to redirect your focus from traffic-building to crafting a plan to increase your conversion rates. Simply put, turn your website visitors into paying customers. If you were to increase your conversion rates even a mere 1-2 percent, you would see a higher impact on profits than tripling your traffic.

Do you have a system in place to analyze your sales funnel? No? Then, you are leaving lots of money on the table. If you want to increase your income quickly and effectively, the first thing to do is figure out which pages in your sales funnel are losing the most traffic and which pages are grabbing your prospects’ attention.

Once you know this, you want to concentrate on the pages that are weak. Try to ascertain, why the page is not working. Is it a boring headline? Is the copy weak? Do you have a clear return on investment (ROI)? Remedying these weaknesses can increase your sales and profits almost immediately. Learn to like fishing

There are many strategies you can implement to prosper when economic times are challenging. You know…more than one way to catch a fish. They may not all be jumping out of the water at once, but they are there, and who better to catch them than you?

Think of the eight quick tips I just shared with you like a tackle box with lots of bait and lots of hooks, lines and sinkers. That tackle box belongs to a pro, but you have just been given free access to it – at any time.

I have equipped you to thrive, to increase your catch despite the recession period we have entered. Implement the strategies that I have explained to you and watch your long-term plans come to fruition. Even though the economy hiccups, you can leave the cash-flow worries behind you and look to your future with optimism and confidence.

Back on track with money-making strategies

This article will not have any power unless you integrate the great ideas I have shared. Make a promise to yourself and your business to integrate at least one of these strategies into your business in the next 30 days. If you make more than one of these changes, you’ll see things happen even faster and not have to worry about where that next check is coming from.

Is your business running you? Are things slipping through the cracks? Wondering how to even take that first step? Become a subscriber to my monthly magazine for Mompreneurs. In it, I share the goods on how to make your business take care of itself so you can take care of your family.