In my opinion, the economy doesn't serve as the primary driver of small business growth. Instead, we often resemble feathers in the wind, adapting to circumstances as they come, rather than actively shaping a predictable system for generating new business. It's easy to mistake our busy activities and efforts for a well-structured system. I am sure we can agree the economy or business environment can sometimes make it easier or harder to gain sales volume, but when your market share starts with a decimal point followed by zeros, there is plenty of business opportunity, no matter what the economy is doing. The cost of customer acquisitions may go up, but just because it's hard doesn’t make it impossible - or is that what we tell ourselves when the way we have “always done it” doesn’t yield results?
The choices we make in response to these challenges determine whether a business thrives or falters when the economic winds shift.
Waiting for sales to come your way is a passive approach that can be tempting during economic downturns. After all, when consumer confidence is low, and budgets are tight, it can be intimidating to invest time, effort, and resources into sales strategies that may not yield immediate results. However, adopting this waiting game mentality can be detrimental to your business in several ways.
Waiting for sales to come organically, you miss the chance to capitalize on opportunities that may be hidden beneath the surface. Many potential customers may still have needs and are actively seeking solutions, even in a down economy.
While your competitors are actively engaging with customers, improving products or services, and exploring new markets, you risk falling behind leading to business stagnation. Relying solely on existing sales can create financial stress, especially when revenues decline. Businesses that aren't proactive in generating sales may struggle to meet our financial obligations, which can lead to further challenges.
On the other hand, actively participating in growing sales during a down economy can position your business for success, even when the economic outlook is bleak. Engaging in a sales process that creates a predictable number of opportunities will foster the ability to adapt to changing market conditions, pivot quickly, adjust strategies, and identify new revenue streams.
Mining your current customer base can be a great resource of opportunity and information. Engaging with customers actively demonstrates your commitment to their needs. It can foster loyalty and trust, making customers more likely to choose your business when they are ready to make a purchase. By seeking new ways to meet customer demands, you can create unique value propositions, innovation, market expansion, and diversification that set you apart from competitors. New opportunities may require creativity both in sales and operations which often leads to process improvements and cost savings.
Now that we've established the importance of being proactive let's explore some strategies for actively growing sales during a down economy:
In a down economy, the choice between waiting for sales to come your way and actively participating in sales growth can make all the difference in the survival and success of your business. While it may be tempting to take a passive approach, history has shown that those who adapt, innovate, and engage with customers are more likely to thrive despite challenging economic conditions. By embracing a proactive mindset and implementing strategies for active sales growth, you can position your business for long-term success, even in the toughest of times.
Ready to implement these proactive strategies for your business? Discover how a Fractional CFO from FocusCFO can help you put these strategies in place and navigate economic challenges with confidence. Contact us today for a complimentary consultation to discuss your specific needs. Schedule now to take the first step towards securing your business's financial future.
Jeff Semple is an accomplished business leader with over 30 years of experience, currently serving as a Northeast Ohio Area President. He has a proven track record in leadership, business development, team building, and financial management. Jeff is known for his expertise in implementing processes and systems to achieve repeatable and predictable results. In addition to his role as a president, Jeff also serves as a Vistage Small Business Chair, dedicating countless hours each year to helping presidents, CEOs, and business owners overcome challenges and transform obstacles into opportunities for growth.