While the overall numbers seem to indicate that the economy of the country is firing on all cylinders, the truth of the matter is that there are areas both geographically and by industry where businesses are struggling. Having lived through a number of difficult times in my 30+ years owning and running my own businesses, I have learned that there are a number of things that you can do that can help to improve your business fortunes.
1. Think lean holistically: It's natural to look for ways to cut our expenses during times when our cash flow is impacted by slowing sales. However, we often myopically focus on the expenses in only one or two areas. In my book Profit Yourself Healthy, I noted 107 areas in your business where you can probably find some savings and bolster your bottom line. In addition some business owners hastily resort to cutting jobs and marketing expenses only to regret some of those cuts later. One study that looked at 4,700 public companies before and after a recession found that those companies that didn't cut their employees and expenses more than their competitors and invested in growing their business, thrived better than similar businesses in their industry that simply cut back to survive.
2. Grow your sales strategically: When our sales start to decline, many business owners panic and rush out to find new customers. The problem with this is that it can cost up to 30 times more to find and onboard a new customer than to figure out how to sell more to your existing customers. That is not to say that we don't need new customers. We absolutely do. However, we need to be deliberate and purposeful in where we are going to spend our marketing dollars and sales efforts. Often there are strategies we can implement in both our marketing and sales that can generate more leads and sales by simply focusing on results and keeping these departments more accountable.
3. Be aggressively positive: It's good to be positive, however positivity alone is not going to get you through the tough times. In fact, studies of prisoners of war survivors found that some of those prisoners who tried to raise spirits of other prisoners by having them concentrate on getting out of prison by a set day, suffered severe depression and often lost hope when that day passed unfruitfully. Those prisoners who were realistic and focused on survival often did better than those who were just positive. Being aggressively positive is different. It means that you are not going to lose heart during difficult times but will work towards surviving and thriving during those long periods of dryness in your business.
To be aggressively positive, we need to realize that as leaders we can't do it alone but we need to use our skills to inspire and engage our team to rise to the occasion. Being aggressively positive means that we believe that we are going to get through this difficult period we are facing and will make the necessary adjustments to the business to ensure this happens and while we continue to provide employment for our people and remain profitable. Being aggressively positive means that when we have made strategic decisions we will work with the vision that we will be successful and implement actions to ensure that success.
The difference between surviving and thriving is momentous and the mindset is significant. If we are looking to just get through a difficult time we can often feel the prolonged pain of every bump we face along the route. However if we are focused on thriving and growing during periods of difficulty and change, our brains look for these opportunities to help us achieve our goals. It takes effort to grow and thrive during challenging times, however the energy required is often not much more than what it requires to simply survive. Running a business is often challenging and there will be undoubtedly difficult times yet with persistence and the right mindset we can move beyond surviving to thriving, if we are prepared.
-- Dave Fuller, MBA is an award-winning business coach and the author of the book Profit Yourself Healthy. Need more business tips? Email dave@profityourselfhealthy.com
