Tips For Recession-Proofing Your Small Business Franchise
Tips For Recession-Proofing Your Small Business Franchise
Cut Costs
Certainly not coming as any kind of shock, this is a valuable move when the economy hits a speed bump. Even if you work from home, cutting expenditures is something that any wise businessman does continually in the course of his business’ lifespan, but particularly when times are tight for everyone, it’s a good time to regroup and apply a revitalized focus to restricting business expenses to only the essentials.
Pursue Dormant Clients and Old Leads
Recession is the time to pull out all the stops and get any business you can, so start by tracking down clients that haven’t used your services in awhile. Give them a call just to see how they’re doing personally and professionally under the weight of the shifting economy. Be sure they know that you aren’t simply contacting them to try to stir up business, but don’t be afraid to mention at the end of the call that if they ever need anything, they should call you. Similarly, go through your files and dig up those old business leads that never amounted to anything. Call them as well, to see how business is running and ask if there’s anything you can do for them.
Make Cheaper, yet Reasonable, Bids
It’s tricky to write up the right kind of bid in a recession: you don’t want to overcharge and scare business away, but you also don’t want to undercharge and miss out on the little revenue you may see in this slow season. Professionals recommend a middle ground somewhere in the range of a 15-20% decrease from regular bid prices. Don’t go straight to rock bottom for any client, but also don’t leave your pricing where it was when the economy was stable and clients had cash to burn. A creative way to make more money without turning clients away is to offer cheap add-ons to your bids. By offering clients small additional services that they can choose to accept or not, you retain the possibility of making a higher profit without making your clientele feel as though they’ve been taken advantage of.
Negotiate More Aggressively with Your Suppliers
As a part of cutting costs, don’t be afraid to wheel and deal with your suppliers and other businesses from whom you receive services. In much the same way that you are reducing prices to keep your clients happy in the midst of a hard time for everyone, your suppliers should be doing the same for you, and you needn’t be afraid to tell them that.
Re-assess Your Loans and Lenders
The fact that the economy is in a downturn does not mean there aren’t business opportunities yet to be had. In fact, if you have loans, it may be a good time to browse around for a lower interest rate or a more stable lender. When the economy takes a dive, lenders often have to lower interest rates to incite more people to take advantage of their lending, so a good businessman would be wise to ask his lender about the possibility of switching to a longer term or a new fixed rate. And depending on the financial state of your particular institution, it may simply be time to jump ship and find a new lender altogether.
Pump up Your Marketing
Though recession is the time for franchises to cut back on costs, marketing should never be reduced; in fact, it may be a good idea to increase your investment of time and money in this area of your business, particularly a home based business. What every business needs in the midst of recession is an increase in client traffic, and that will never be achieved if potential new clients do not know that your business exists. Without a good, revitalized advertising scheme, making it through a recession is not as likely.
Keep Close Record of Everything
Because you likely have more time on your hands during a recession, take some of that time to keep a closer watch on everything about your business from expenditures to client purchases. Take note of it all, step back, and assess the situation. This will help you determine where you can cut costs, how much money you can funnel into marketing, and the like. As well, having a detailed record will help you establish a plan of action for any future downturns as well.
Keep a Close Eye on Client Payment
In any recession, cash is far more valuable than credit, so ensure you have tangible cash in your accounts by reminding clients about invoices when they go even a day overdue. Though you don’t want to be a hound, you want to be certain that clients who are notorious for late payment get their funds to you on time.
Recession isn’t easy for anyone, but there are ways to make it easier on yourself and your business by staying on top of things. By adapting a few aspects of your business to the changing trends and adjusting your focus slightly, your ability to weather the storm could be strengthened greatly. Take these ideas to heart and use them as your business needs.
Tips For RecessionProofing Your Small Business Franchise - To learn more about this author, visit Candice Clem's Website.
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Recession can be a frightening time for consumers and businesspeople alike, because it puts everyone’s financial stability in jeopardy. As a small business owner, these periods can produce a very acute sense of hopelessness, as it seems like the economic influences tossing your franchise business around are entirely out of your control. Therefore, determining what exactly should be done in the midst of a recession can often be a very difficult, and sometimes fruitless process. If the recession is weighing you down and figuring out what to do to keep your franchise afloat is bearing no recognizable success, here are some fresh ideas to act on, both to give yourself a concrete course of action to take and to see a quicker recovery for your business.
Cut Costs
Certainly not coming as any kind of shock, this is a valuable move when the economy hits a speed bump. Even if you work from home, cutting expenditures is something that any wise businessman does continually in the course of his business’ lifespan, but particularly when times are tight for everyone, it’s a good time to regroup and apply a revitalized focus to restricting business expenses to only the essentials.
Pursue Dormant Clients and Old Leads
Recession is the time to pull out all the stops and get any business you can, so start by tracking down clients that haven’t used your services in awhile. Give them a call just to see how they’re doing personally and professionally under the weight of the shifting economy. Be sure they know that you aren’t simply contacting them to try to stir up business, but don’t be afraid to mention at the end of the call that if they ever need anything, they should call you. Similarly, go through your files and dig up those old business leads that never amounted to anything. Call them as well, to see how business is running and ask if there’s anything you can do for them.
Make Cheaper, yet Reasonable, Bids
It’s tricky to write up the right kind of bid in a recession: you don’t want to overcharge and scare business away, but you also don’t want to undercharge and miss out on the little revenue you may see in this slow season. Professionals recommend a middle ground somewhere in the range of a 15-20% decrease from regular bid prices. Don’t go straight to rock bottom for any client, but also don’t leave your pricing where it was when the economy was stable and clients had cash to burn. A creative way to make more money without turning clients away is to offer cheap add-ons to your bids. By offering clients small additional services that they can choose to accept or not, you retain the possibility of making a higher profit without making your clientele feel as though they’ve been taken advantage of.
Negotiate More Aggressively with Your Suppliers
As a part of cutting costs, don’t be afraid to wheel and deal with your suppliers and other businesses from whom you receive services. In much the same way that you are reducing prices to keep your clients happy in the midst of a hard time for everyone, your suppliers should be doing the same for you, and you needn’t be afraid to tell them that.
Re-assess Your Loans and Lenders
The fact that the economy is in a downturn does not mean there aren’t business opportunities yet to be had. In fact, if you have loans, it may be a good time to browse around for a lower interest rate or a more stable lender. When the economy takes a dive, lenders often have to lower interest rates to incite more people to take advantage of their lending, so a good businessman would be wise to ask his lender about the possibility of switching to a longer term or a new fixed rate. And depending on the financial state of your particular institution, it may simply be time to jump ship and find a new lender altogether.
Pump up Your Marketing
Though recession is the time for franchises to cut back on costs, marketing should never be reduced; in fact, it may be a good idea to increase your investment of time and money in this area of your business, particularly a home based business. What every business needs in the midst of recession is an increase in client traffic, and that will never be achieved if potential new clients do not know that your business exists. Without a good, revitalized advertising scheme, making it through a recession is not as likely.
Keep Close Record of Everything
Because you likely have more time on your hands during a recession, take some of that time to keep a closer watch on everything about your business from expenditures to client purchases. Take note of it all, step back, and assess the situation. This will help you determine where you can cut costs, how much money you can funnel into marketing, and the like. As well, having a detailed record will help you establish a plan of action for any future downturns as well.
Keep a Close Eye on Client Payment
In any recession, cash is far more valuable than credit, so ensure you have tangible cash in your accounts by reminding clients about invoices when they go even a day overdue. Though you don’t want to be a hound, you want to be certain that clients who are notorious for late payment get their funds to you on time.
Recession isn’t easy for anyone, but there are ways to make it easier on yourself and your business by staying on top of things. By adapting a few aspects of your business to the changing trends and adjusting your focus slightly, your ability to weather the storm could be strengthened greatly. Take these ideas to heart and use them as your business needs.
Tips For RecessionProofing Your Small Business Franchise - To learn more about this author, visit Candice Clem's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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