Recession-Proof Your Business

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Recession-Proof Your Business?

- by Todd Jensen

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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.vipclubmarketing.com
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