Happy Recession to You
by Andrew Shedden
In case you haven't heard we're entering a recession. Businesses will close, people will be laid off, families will be radically changed, and unemployment will rise. During economic slowdowns all business people have very serious decisions to make. Before you become frozen with fear and decide to go and get that assembly line job at GM here are a few points to ponder.
The toughest decision you'll have to make
The toughest decision you'll have to make is whether or not you are willing to embrace the realities of leadership. The primary reality of leadership is being able to make the difficult and often unpopular decisions based on your factual analysis of the information at hand. Sometimes the best decision is to pick up your bat and ball and go home. This might be the best marketing advice that you ever receive. That's right. The best decision may be to close your doors.
Most business owners I know who have closed their businesses tell me they wish they'd done it earlier. How do you resolve the inherent contradictions in what you have been told to believe? How do you reconcile "Don't flog a dead horse." with "Winners never quit and quitters never win?" There is no easy answer to this but here is a litmus test you can use that may help you make up your mind.
Before making a decision of this magnitude about the future existence of your business you need to ask yourself the following question. "Knowing what I know now, would I start out in this business today?" If the answer is no it's probably time to move on. A recession isn't going to make your life any easier. More time won't float a sinking ship. Make the tough decision, today.
If you have decided that you want to press on read on…
What is expected of leadership?
If you are in a position of leadership in your company one thing should be uppermost in your mind; those who follow you want to be led. What this means is that they expect decisive leadership. Navigating your company through a recession is no time for wishy-washy hand wringing.
Your employees need a firm indication from you that the situation is well in hand. The best way to illustrate leadership is through action. In all of your marketing activities planning has its place but execution is more important. Planning paralysis and lack of specific and concrete direction is poisonous to any business at this time. It is imperative that you spend your time immersed in action. Do something.
What can I expect?
Obviously, the first thing you can expect during a recession is that you will have to make more calls to get the same results. Prospects will be even more skeptical and reluctant than usual. They will be seeking reassurance as much as product knowledge. Make sure your sales representatives are in tune with this reality.
What is expected of marketing?
The Marketing Department will be expected to keep generating sales opportunities for your business without fail. If sales begin to slip the first department blamed will be marketing. This means that a great deal of pressure will be brought to bear on all of the marketing and sales staff within your business.
If you are serious about increasing the excellence of your business practices there is no better time than now. Many of your competitors will be making the fatal mistake of cutting back on their promotional activities. This presents quite an opportunity for the astute marketer, as it is an ideal time to build market share.
What can I do?
In terms of your marketing and sales practices a recession is not the time for the faint hearted. If you have any uncertainty about the direction you are, or should be, taking now is the time to be doing something about it. You must measure, analyze, and branch or prune every aspect.
You must have a clearly identified target market receiving a clearly articulated unique sales message. Lazy, unmeasured, and unmeasurable marketing techniques have little place in good economic times. During a recessionary period there is no room for error or frivolous action. This is no time to be wasting your shots.
During a recession you will have fewer sales opportunities so your sales processes need to be optimized. It will be more important than ever to take your time and build your relationships. Now is an excellent time to sharpen every aspect of your sales process from lead generation through delivery.
If your sales force normally puts on a dog and pony show this would be as good a time as any to change it. There is no place in professional selling for high-pressure manipulative tactics. If you are trying to sell in a complex sales environment you need to be sure that you have a thoroughly reliable and predictable process in place.
The last area to look at is your marketing communications. Make sure that you have congruity in all of your outbound communications. How well do you articulate your unique selling proposition? Do you stress benefits over features? Make sure that prospects understand what you do, from the way your phone is answered through your sales letters, brochures, web site, and your e-mail signature.
It is important to remember the cyclical nature of the economy. Remember when interest rates were over 20%? While it is impossible to predict how long this recession will last it is certain that it will end. The manner in which you respond to the current economic climate will determine who will still be in business to see the next upturn. Tighten up your marketing and sales processes. Sharpen your focus and radically differentiate your company from all of your competitors.
It takes fortitude to be in business. Don't let this slowdown slow you down. Perhaps the best way to deal with the recession is to refuse to participate in it.
