While scanning the web, we recently came across 10 top tips to help if the market slows down. Here they are, complete with a few Hanson amendments:
1. Clients that made you rich in good times can make you poor in a recession.
2. You may need to switch from a "delivery" business model to a "value-added" model. If your business depends on delivering ‘mass’ products or you do little to add value, you'll find it harder to compete.
3. Some markets and specialties will be spared. Case in point: After 9/11, when cuts were rampant across the board, certain markets, such as defense contracting, construction and legal services, actually thrived. If you can identify the markets left standing, they can be your lifeline.
4. Buyers are more cost conscious. As a result, you can expect more pressure to reduce your fees and deliver more. Aim to do the second but not the first.
5. Marketing yourself will become more common. Most buyers will throw out the rule book if you bring to their attention that you can make an immediate, positive impact. If you have enough sizzle, buyers will find a way to hire you.
6. Your time management becomes more critical. With less work on, you'll need to be highly selective about which projects will give you the greatest return on your investment of time.
7. Weaknesses in your selling skills are more exposed. Recessions leave little margin for error. The better you are at qualifying, closing, handling objections and making presentations, the more efficient you'll be with respect to converting activities into income.
8. A recession is the best time to be in business. I know this sounds counterintuitive. But look at it this way: When times get touch, the weak will wash out with the tide. If you can weather the storm and find ways to gain market share and build your reputation, you’ll be positioned to grow as the market recovers.
9. Cash flow is everything. Learn to control your spending or make cuts in your budget. Otherwise, you might end up working with your back to the wall. (No yachts for now!)
10. No doubt about it: A recession is a buzz kill. But it can also be a great teacher, because it humbles you and makes you more aware of your weaknesses. If you can stick it out and learn from your mistakes, you'll make tons of hay when the sun shines again, and you'll be more immune to future downturns.
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