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Five Hints for Surviving a Business Slump |
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Starting and running a home-based business has plenty of benefits and
can generate a decent living quite easily, but the ride isn't always
simple. When sales are slow or new customers are sparse, you don't need
to throw in the towel and call it quits.
Business is a cycle. Sometimes it's booming and other times it's not,
but neither state is permanent. The difference is that while business
is booming, your biggest concern is meeting the needs of your multitude
of customers. When things are not, you may be scrambling to keep
everything on track.
Below you will find a few suggestions about what to do and what not to do when your home-based business hits a slump:
1) Keep in Touch with Past Customers
When business is going great, you may have a tendency to forget those
past clients who helped get you where you are today. Yet, when things
slow down, they can be your safety rope. Now is the time to drop them a
friendly email or note with a pleasant message.
Don't come across as needy and don't tell them you are experiencing
slowdown, but do ask them to keep you in mind if they have need of your
services or if they know of any colleagues who may be in need as well.
Be sure to include your business card or contact information just in case they've misplaced it since you last worked together.
2) Avoid Cutting Prices
If sales stagnate, you may be tempted to boost business by dropping
prices. While a temporary sale or special offer may attract new
customers, if you expect to cut prices across the board in order to
raise revenue then you may be making a mistake in judgment.
When a new customer can pay $25 for your product during a slowdown, how
are they going to react when you try to raise that price back up to $35
or $45 after things pick up? Once you lower prices, it's difficult to
get them pack up again, so cut prices only as a last resort.
3) Make Budget Changes Carefully
When revenue is dripping in instead of pouring, you may need to trim
some budgets, but be careful to make those reductions wisely. Your
first instinct may be to cut back on staffing, distribution, or
customer service. While these changes may help in the short term, they
may cause you to lose clients in the long run.
Never make any budget alterations that might end up hurting your customers and costing you business.
4) Never Skimp on Quality or Quantity
Two things determine customer satisfaction: quality and quantity. If
you are trying to cut corners in order to save money, you may consider
making alternations in these two vital areas.
However, doing so may throw your business into more peril than any
temporary downturn in the cycle. When you provide services or products
which fail to meet the customers' expectations, you put yourself in a
position to lose repeat business, and repeat business is where the
money is.
Also, remember that happy customers are likely to tell others how
satisfied they were with your company. Likewise, unhappy customers
typically don't hide their dissatisfaction. Maintaining your current
level of quality and quantity, or even increasing it, should be among
your top priorities.
5) Never Appear Desperate
People like to do business with those who are successful. Therefore, if
you approach potential clients with the air of desperation in your
voice, you are more likely to scare them away than enlist their aid
during this difficult period.
Examples of desperation may not just be obvious in what you say to your
customers but also in what you do. For instance, if you significantly
reduce your quote in order to secure their business, you may be sending
them the wrong message. Stay positive and optimistic. After all,
nothing attracts business like a good attitude.
By following these suggestions, you'll be able to tackle those bumps in the road and still come out on top of the game.
Vishal P. Rao is the owner of Home Based Business Opportunities - One of Internet's leading website dedicated to starting, managing and marketing a home based business.
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