Slowdowns undoubtedly are a natural part of the economic cycle. However, while the shift from "boom" to "bust" is inevitable over the long term, small businesses still tend to be quite resilient in times of economic uncertainty. This is not by default, however, and those SMMEs that weather the worst of economic storms achieve this through proactive measures and innovative strategies. One example would be to counteract a market downturn in one segment by expanding the customer base in other segments, and perhaps expanding the service and product offering based on evolving consumer demands.
Turning adversity into opportunity
Difficult economic conditions can be very unsettling to say the least, but it need not necessarily spell "bad news" for SMMEs with a progressive outlook! In fact "recession", unbelievably, can create opportunity for those who remain focused and optimistic. This includes attending to several important and often marginalised "housekeeping" issues, while continuing to "hold the fort" in preparation for rosier times ahead! Some housekeeping aspects include issues like sorting out inventory, underutilised stock and assessing 'dead stock', reinforcing customer relationships, developing marketing and sales strategies after taking time to evaluate success on current strategies, and so on.
There are also several effective and strategic measures that can help companies manage uncertain economic conditions.
The "Strategic Edge"
Strategy is all about the end-goal you wish to achieve, and finding the right techniques to achieve the desired outcome – in spite of the challenges you may face along the way! The strong strategic edge that your company will need to survive difficult times should ideally incorporate the following attributes:
Superior service is a competitive differentiator, even if service is an after-sale support function. In order to stand out, you need to deliver unforgettable "personal service" each and every time! Make every customer feel like they are your only customer. Respond effectively to their communication, especially complaints; demonstrate "urgency" and act promptly to meet their expectations. At this level you are bound to even exceed the expectations of your target market. Complaints should also be welcomed as an opportunity to pinpoint areas for improvement and turn an unhappy client into a brand ambassador!
- Continuation of marketing initiatives
Marketing is an important strategic investment, and should be treated with the same amount of enthusiasm when formulating and implementing associated initiatives. If at some stage it becomes necessary to reduce certain marketing endeavours and lower your budget, you must do so selectively and after careful thought.
- Be aggressive in your efforts to gain new business
The companies who are the hungriest for success never slow down in their sales initiatives! Be ambitious, but always with your feet on the ground. Keep running, keep growing, set achievable, realistic goals - and make sure you and your staff try to have "fun" doing it too! If work becomes fun, productivity is sure to increase!
- Look for ways to reinforce key customer relationships
If you know that a key customer is experiencing a business slowdown, why not find create ways to try and assist or intervene where possible? Not only does this create a win-win scenario for both parties, but you client is likely to never forget you, never leave you, and probably tell many other people about your "great business".
With constructive planning and strategic foresight small businesses can definitely turn economic uncertainties into new business opportunities. Uncertain economic conditions can create the perfect opportunity to refine the different components of your small business and thus ensure long term sustainability. So no matter the ups and downs, remain positive but also very calculated in terms of your strategies and how you plan on implementing them!