Getting Through the Slow Times
Most businesses have up times, and times when sales are slow. Are you prepared to weather the slow times?
Whether your business is seasonal and predictable, or slowdowns arrive suddenly and without warning, you can reduce the impact on your bottom line with some advance planning. Here are some ideas on reducing revenue loss and getting the most out of every month.
Market all the time to keep a steady flow of new customers. Sudden slowdowns can happen because while you were busy you “forgot” to market. Make time, even when you have all the business you can handle, to continue reaching out to current and prospective customers.
Offer discounts to motivate people to buy now. Everyone loves a sale. You might give an across-the-board discount, or put certain products or services on sale.
Explore alternate markets. A speaker I know found that she got few bookings in December, because no one was holding training and conferences. She created a comic character and started making appearances at holiday parties. Suddenly, her slow season became her busy season. You may be able to market your existing products and services to new markets, or you may create something entirely new.
Create streams of recurring revenue. If you have a fairly steady stream of cash coming in every month, it provides a nice cushion during down cycles in your business. Multiple sources of income are even better. And, the more passive that income the better. Examples of recurring income streams would include advertising sales (such as running Google AdSense ads on your web site), rentals (e.g., renting property, equipment, or a portion of your office), commissions (such as through network marketing, or a product or service you sell once and receive commissions as long as the customer remains a customer), or royalties (perhaps from intellectual property you created, e.g., a book, invention, process, etc).
Look for ways to cut expenses during the slow times. Chances are you are spending money on things you do not need, or you can get better deals on some of the things you need. Use this time to search out those better deals and save money all year.
Labor may be your largest expense. Cutting staff is probably not a good idea, because you will need those talented employees when business picks up. However, you might offer the option of reduced hours (and reduced pay) to employees who would value the time off. If you do not have enough work to keep everyone busy, consider keeping something that you would usually outsource in-house.
Take a vacation. Some time away can help you recharge for the busy times. Plan to spend a week or so sunning on the beach, skiing down a mountain, or whatever you enjoy. You will come back energized and ready to take on lots of new business.
|
|
|
|
|
|
|
|
|
|
|
|
