How can you grow your business in a down market you might ask? I say, there are always opportunities for business growth – regardless of the state of the economy.
There are opportunities in every market and in every circumstance. You just have to set your mind to look for these growth opportunities. Turn around and look in all directions.
The problem is that when bad news comes – like our current economy – we, as human beings, tend to get caught up in that negativity. So, to grow your business; change your thinking to a positive mind-set and start looking for the opportunities that arrive.
1) Some of your competitors will be downsizing or closing their doors. Think about ways that you can pick up their customers. Get your message out to them citing that you can service their needs and that your business is not going anywhere. Regardless of the market, people and businesses will still need goods and services and they will still continue to buy. The question becomes, who will they buy from?
2) Further regarding competitors downsizing or closing their doors, the talent pool for your industry increases. This is a great time to pick up new, recently laid-off employees that have both superior talent and skills as well as knowledge about your industry and local markets. This is like having your cake and eating it to. First, you get employees who know your industry inside and out and, second, you don’t have to realize huge costs in training while ramping them up. These employees would hit the ground running and could possibly help with number 1 above as they already know and have established relationships with your competitors’ customers.
3) Cut costs. Do not just cut costs for the sake of cutting costs. Cut costs to better position your business for the future. This is a great time to renegotiate service contracts with your vendors and suppliers. Go through your income statement item by item to see if there are costs that can be restructured. Start inside your business – i.e. your phone and internet services, office supplies, rent, equipment leases, dues and subscriptions, etc, etc, etc. Look for ways to not just reduce these, but to position them more favorably for your firm (e.g. get more for the same costs). Then look outside your company – marketing and advertising, inventory purchases or trade goods and service purchases, shipping or any and all costs item. Look to renegotiate with these vendors and suppliers. They are also feeling the pinch in this economy and I can guarantee you that they would rather keep your business at a lower rate than lose you all-together. Should one of these partners not want to renegotiate, then this is a great time to shop around for a new vendor who is willing to help you as you help them. Lastly, think long-term. When you renegotiate try to create the best deal with the longest term possible. This not only shows this partner that you are in this for the long haul, but will better position your company when the economic recovery begins and prices and costs start to trend back up.
4) Additionally, with the supply of office space (warehouse, retail and office) on the rise as other businesses are closing their doors, and demand for these spaces declining, this may be a great opportunity to upgrade your location. Imagine getting more and better space or even a better location for what you pay now.
5) Go after the clients or jobs that you avoided before; be it from lack of funds, lack of scale, or just plain fear. Go after these jobs or clients with gusto. Show them that you are the company that will not fail and that can and will meet their needs, timely and cost effectively. The goal here is not to just get more, bigger business, but to potentially steal clients away from struggling competitors; competitors whose customers may be worried about their long-term viability. Thus, show that you can both do the job today and that you will be here tomorrow to continue servicing them.
The bottom line is to focus on growth. Look for opportunities that grow your business today and that will position you at the head of the class when the market turns around.
Bonus: Not sure if you can pay for any of this? First, think about the cost savings you can achieve by renegotiating with your vendors and suppliers – use these savings to grow your business – specifically to position your business to be on top when the economic recovery finally shows it head. Second, think about assets that you have obtained over the course of operating your business. Many of these assets can be used as collateral in attaining additional cash for your business.
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