3 Secrets to Growing Your Business in a Slow Economy
by Bob Leduc
Bad economic news doesn't have to be bad news for your small business.
Your business can thrive and grow in a slowing economy if you make it
recession-proof. Here are 3 things you can do immediately to start
recession-proofing your business.
1. Get More for Your Advertising Expense
The return on your advertising expense will shrink during bad economic
times unless you take specific actions to prevent it. Look for ways to
keep your sales volume growing without increasing your advertising
expense. For example:
** Negotiate Price With Advertisers
Advertisers are hit hard during an economic slump. Many are willing to
negotiate a special discount to keep your business -- or to get it away
from their competitors. Take the initiative when you're placing an ad. Ask
for a discount ..or a bigger discount than one already offered.
** Trim Your Ads
Reduce the size of your ads so you can run more ads without increasing
your total cost. Don't be surprised if some of your short ads generate a
bigger response than your long ads. The most effective ad I ever used was
only 11 words.
** Generate Free Publicity
Start a publicity program for your business ...or expand the one you
already have. Publicity produces sales for a much lower cost then
advertising. For example, find something newsworthy about your business.
Write about it in a news release and distribute it to publishers.
2. Take Advantage of Your Existing Customers
Your customers already know you and trust you. It's easier and cheaper
to get more business from them than to get any business from new
prospects. Here are 2 ways to use your relationship with customers to
generate additional business.
Offer Them Related Products Or Services
Find or create additional products and services you can offer to
existing customers (and to new prospects). Your new products or services
should be closely related to those your customers originally bought from
you.
For example, I recently spoke with a network marketer selling
nutritional products. She also works with a health club that pays her a
commission for each new member she signs up. Over one third of her income
is generated by offering the related product to her customers.
Ask Them To Help You Find New Customers
Ask your customers for referrals. Reward them for each referral that
becomes a customer. Your reward could be a discount on their next order or
a special bonus item. Announce your referral program to customers with low
cost communication tools like email, postcards or personal phone calls.
3. Offer Some "Big Ticket" Items
Some of your potential customers are not affected by a poor economy --
or they benefit from it. Others may place a higher value on your products
or services when the economy is bad. These prospects are willing spend
much more with you than your average customer. Don't forfeit this income.
Find or create additional products or services similar to those you now
offer ...but with a much higher price.
For example, one online marketer recently packaged her latest "how
to" book with several eBooks and a "members only" website.
She priced this special package about 8 times more than the average size
order placed by her customers.
Her number of sales declined when the economy slowed down. But her
sales volume and net profit are still growing. The dollars produced by a
small number of these "big ticket" sales more than replaced the
dollars she lost because of fewer average size sales.
Your business can thrive and grow during an economic slowdown if you
make it recession-proof. Use these 3 proven marketing tactics to start
recession-proofing your business.
Copyright 2001 Bob Leduc
Bob Leduc retired from a 30 year career of recruiting
sales personnel and developing sales leads. He is now a Sales Consultant.
Bob recently wrote a manual for small business owners titled "How to
Build Your Small Business Fast With Simple Postcards" and several
other publications to help small businesses grow and prosper. For more
information... mailto:BobLeduc@aol.com?subject=Postcards
Phone: (702) 658-1707 (After 10 AM Pacific time) Or write: Bob Leduc, PO
Box 33628, Las Vegas, NV 89133
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