Recession-Proof Your Business?

Recession-Proof Your Business?
Recession. Consumers cut back on spending. Businesses cut
costs and lay off employees. In response, consumers cut
back even more.

Our economy is officially in a recession when the GDP
growth rate is negative for two quarters or more. However,
any slowdown in economic growth can have a negative impact
on your business.

Your first response may to focus all your attention on
bringing in more new customers as quickly as possible.
After all, your current advertising methods have gotten
your business where it is today, right?

If consumers are cutting back, your advertising may be less
effective. You may find that you are throwing more and
more advertising dollars out there, with less and less
response. A recessionary economy can stifle new business.
As consumers tighten their belts and reduce discretionary
spending, you may find yourself fighting your business
competition for a smaller pie.

Economic ups and downs are part of life. It would be
unrealistic to expect constant growth. The big question is
whether or not your business is prepared. Could your
business survive losing 30% of your customers? What's your
marketing plan for this scenario? Do you have one?

Fortunately, you have options. While new business
acquisition is important, it is just one way to grow your
business. You should always continue efforts to bring in
new customers, but focusing on your current business can
help prevent lost profits and even allow your business to
grow while others around you are stagnating.

One of our existing clients was concerned about a downturn
in his industry and asked us how he could handle a
potential loss of 30% of his customers. He was not sure he
would be able to bring in 30% new customers to replace
them. We showed him how he could lose 30% of his customers
and do the following:

- Increase his average sale by 2%...

- Reduce his direct costs by 2%...

- Get his existing customers to come back 2%
more often...

- Increase his productivity by 1%...

- And bring in just 2% more new customers...

And the best part is that even if he lost 30% of his
original customers his net profit would actually increase
by 15% using this plan.

How quickly could you get your business back on track with
a similar plan? And, what if you were able to boost a few
of these percentages a little more? How would you like to
be increasing your bottom line while your competitors
struggle to keep their doors open? Even better, what would
following a similar plan do for your business if your
industry is not currently slowing down? Periods of slow
growth can be a good turning point for your business. It
can give you time to fine-tune your operations, increase
customer service, and streamline procedures. Rather than
spending all of your energy focused on how to bring in your
next customer, you can take the time to build up back end
sales to your existing customer base. Your greatest asset
is your customers-are you doing what it takes to bring in
the right ones and keep them coming back for more?

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Todd Jensen, "The Profit Engineer", is a business growth
expert. To discover easy and simple strategies on how to
"Recession-Proof" your business, visit:
http://www.theprofitengineer.com or
http://www.4waysuccess.com VIP Access Code:801