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6 Ways To Recession-Proof Your Business

Guest post by: Jay Conrad Levinson

Article Overview: All businesses are having to adjust quickly to some stark new realities. In this current environment of seesawing markets - surging and then sagging commodities, volatile currencies - huge gains... then huge drops in stock prices - it's getting harder than ever to predict what's going to happen.

6 Ways To Recession-Proof Your Business

All businesses are having to adjust quickly to some stark new realities.

In this current environment of seesawing markets - surging and then

sagging commodities, volatile currencies - huge gains... then huge drops

in stock prices - it's getting harder than ever to predict what's going

to happen. I can recall fairly recent conversations (pre-crisis) I had with a

number of people outside the USA who felt their business was insulated

from the issues here. But, as always, that's not the case. Everything is

interrelated... and if a major economic engine like the US economy

"sneezes"... then everyone "gets a cold."

Preparing for the inevitable

Most businesses have now felt what this economic crisis means in

practical, day-to-day terms. It translates into decreased activity,

cancelled orders, lower profits, and perhaps... having to cut costs to

the bone - which hampers your ability to operate effectively.

If there's one thing that's for sure... no one knows how far this mess

goes to finally unwind and return to an acceptable balance. Eventually

though, we'll all get through this... and overall business will again be

on the rise as the pendulum ultimately swings the other way. But, in the

meanwhile - you'll need to take steps to make sure your business

survives and is able to operate at a pace that's adjusted to your own

personal circumstances.

That said, let's get into 6 specific ways that can help weather the

storm... deal with all this change and uncertainty... and help you

recession-proof your business:

-----------------

1) Go to where the consistent buyers are --

In every business, there are always a certain number of your customers

or clients who simply need what you offer - and their buying is

relatively insulated from the current economy. You can and should

concentrate your efforts on promoting to them specifically to build

buying frequency - and actively try to find more buyers just like them.

If you aren't currently able to identify these people in your own

clientele, then create a promotion designed to attract them. You can

focus your promotional theme (positioning) in a way that that appeals...

and would specifically be attractive to... those who's buying habits are

unaffected by the overall economy. Knowing who they are helps you target

better.

-----------------

2) Go to the persistent markets --

Focus on identifying and finding markets or groups of people

(associations, trade groups, clubs, etc.) - who have an ongoing need

and/or requirement for what you're offering. And, if you can, lock-in

business by setting-up exclusive provider arrangements with these

groups.

Let me suggest that, more than likely, there are overlooked and

completely unexplored markets that could potentially be a good fit for

your business. Perhaps even a large number of different groups - and

niches of individuals who would be responsive to your offers - that you

have not even considered before.

-----------------

3) Go to where the money is --

This one may seem pretty obvious once I say it, but unfortunately, it

isn't always completely thought through with the clarity it might take

to make the statement useful: Sell to people who HAVE money.

There's a famous quote that's attributed to William "Willie" Sutton, a

prolific US bank robber from the 1930's: "Why do you rob banks?"...

Reply: "Because that's where the money is." The quote formed the basis

of Sutton's law which is taught to medical students - which states that

in attempting to diagnose a problem, one should first do the experiment

that can confirm the most likely diagnosis. For our purposes here... it

means "go to where the money is."

-----------------

4) Offer help and relief to those who are in pain --

Pain can take many forms... and isn't always physical. People who are in

financial trouble are in mental and psychological pain - and want relief

just as desperately. The main problem dealing with people in this

condition is that they don't have much money to spend. But, they might

have some. They might have good cashflow, just not enough.

If your type of business can be positioned to allow people some

relief... afford them some comfort (even if temporary) - you may find

that this becomes an attractive proposition. Carefully consider a

separately positioned offer to attract people in these circumstances.

-----------------

5) Offer a solution to a problem --

This one is "tried & true" during positive economic times, but can

become a prevailing theme that works even better when times are tough.

You want to narrow your marketing messages down to focus on one

particular problem or issue at a time. That way, you can get very

specific about attracting people who are seeking a solution to that

particular problem or issue - and approach them with an offering that

will help solve and alleviate it.

But, make sure that you have a specific follow-up-to-conversion process

in place that doesn't dilute the focus with a choice of possibilities -

or even worse - that isn't at all specific to the problem or issue that

attracted the prospect in the first place. Sell them "the answer" first

- then you can consider other offers once you've converted people to the

original narrowly focused solution to the original problem.

-----------------

6) Offer a way out --

If what you're offering can be positioned as a "life raft" or "escape

hatch" in times of emergency - you will have no trouble attracting

willing buyers. But, be sure that your product/service fulfills on this

promise - or you'll have a hornet's nest of dissatisfaction on your

hands.

When you are truly able to offer real relief... real escape... from

their most pressing problem or issue - this can be one of the most

powerful motivators in times of extreme stress. Think along the lines

of: "A truck full of plywood rolling through a neighborhood that's just

been informed of an impending hurricane."

-----------------

We've definitely entered an entirely new chapter in economic history -

that will go down as a key turning point after the expansive global

economy of the last 15 years.

As an entrepreneur... your ability to be able to plan for the future...

and conduct business in a stable and predictable environment - are in

now in jeopardy for the foreseeable near-term future. What's needed are

drastic actions right now in order to put your business on a successful

footing during these tougher times - so you'll be able to thrive when

things finally do change for the better.

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Article Tags: acceptable balance, commodities, conversations, currencies, economic crisis, economic engine, economy, new realities, pace, pendulum, personal circumstances, profits, recession proof, stock prices, uncertainty, weather the storm



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