How to battle the economy blues

There are some parts of the economic puzzle that will barely feel the pinch. Medical comes to mind, as does education. Business as usual, though that new computer room for pre-schoolers may have to wait (do they really need it that early anyways???).

The service industry, on the other hand, better get their shields up.

When the economy decides to go downhill with no hands, the first place that people tend to cut back on is their personal buying. Groceries now become a time of matching the best price with the highest coupon, clothes miraculously are “reborn” and can last another 6 months, and even though the leftovers are a few days old, maybe we should just close our eyes and pretend that we are eating out tonight.

But as a service provider, what else can you do but sit back and wait it out? Best thing is to lay off a few people, cut back on expenses like travel, and wait for the light at the end of the tunnel.

Or is it?

There are a lot of more positive ways to actually use times like these in order to help your business grow, things that will allow you to not only survive the tough times, but come out even stronger. And don’t worry, you can keep the shirt on your back to do it.

No business can survive without the best people, and you have gotten where you are with the people you have. This is the perfect time to take a look at these people, and help them to build on and grow their talents. Schedule weekly one-on-ones with them, it can be as little as 15 minutes, to go over a success that they have had in the past week. Discuss the details of what happened and what the key elements were to that success, and try to work on ways to build on it to have the result become a regular event. You should also take this time to speak with them privately about their concerns and any ideas they may have about this difficult time, and how they percieve their future.

Spend more time with your team as well. Schedule a Mind Jam session for Monday mornings, a time where players can sit around the table and discuss new ideas. Ask each person to do a small weekly presentation on a facet of their work, how they view it in the big picture and ways that they apply this to succeeding daily. Have a white board set up so that ideas and strategies can be quickly noted. Keep it positive, this is not a whining session. This is about keeping motivation high and getting everyone involved in the day to day of the business.

Obviously , if sales are down then money becomes a factor. This is where most companies move instantly to lay off people, even though those people are important pieces of the machine. Instead, try and see if it is not possible to work with your team on flexible hours, or find new ways to use these valuable people on an approach you have never tried. Perhaps it would be a good time to send someone on the road to try and drum up new clientele. For example, if you are in the clothing industry, why not send someone out to companies in the area to offer a corporate discount to employees of that company, and they would get a percentage of sales connected to that campaign? Sports stores could do this with various amateur organizations, schools, or other groups.

One thing almost everyone does when the economy goes south is slash prices. This leads to one problem – what does that do to the long-term value of your product? Yes, people will be happy to see that the price is lower, but what happens when the economy turns? You have devalued your product and will now have a hard time to get people to buy it at the original price. Instead, move towards adding value to your product. Offer free information sessions on your product, increase the length of the guarantee, include a wider range of post-purchase services, or offering an opportunity to upgrade at a later date are ways to peak interest and give the sense that they are getting a real bargain, without cutting too deep into your profits.

Times like these are not easy. But those who will survive are those who do not take the easy way out and just cut back and hope for the best. Those who move proactively and positively, who use this time to help their people grow and explore new ways of doing things, those who work with their people and value them – they are the ones who will look back on this time and see it as a springboard for success in the future. No matter how grey the sky is today, how you see that sky is entirely up to you. Some see the rain, others see the harvest that will come as a result of it.

So here is this week’s cold call. Managers, business owners, CEOs, take a look at how your are doing things and before you pull the trigger and start going crazy with cutbacks and firings, make sure you have no other options. Speak to colleagues and competitors (no one wants to go down with the ship, you will be surprised how open they are to talking). Research, and look deeply at how you are doing business. If you are an employee, take the initiative and speak with your boss, ask them to spend some time with you so that you can make sure you are doing all you can to take advantage of this time, and more importantly, to demonstrate your value and willingness to remain. This is not just about money, but contributing to the growth and survival.

You and your company can grow in times like these, but you may have to do things in a way that goes against what you have known up to now. Your flexibility in doing so could make all the difference, to you, and to your people.

Have a great Sales Week!