7 Ways to Build Business in a Tough Economy

As I look around I’ve noticed competitors selling their businesses, closing their doors or simply getting small. It’s not just my competition, it’s the business world around us.  Whether you’re starting a business or want to build your business in this economy, here’s 7 simple ideas to consider.

1.  Acquire:  Growth through aqcuisition could be your key to future growth. Find businesses within your industry that are distressed or tired. Or stretch a bit and add a business that has synergy with your core business.  But don’t wander too far from your core business. Look for a business that adds to your cross-sell initiative since new customers are hard to find in a tough economy.

2. Inbound Marketing:  Invest wisely in marketing. Although traditional marketing still has it’s place, use your spare time or consider getting your marketing folks onboard with Inbound Marketing initiatives.  Become a thought leader within your industry.  Use the web to get found by your buyers. Today, people want to buy rather than being sold too. Using Inbound Marketing (blogs, Search Engine Optimization (SEO), Social Media like Facebook, Twitter, LinkedIn and more) help your potential buyers find your company when they are ready to purchase. Inbound marketing creates credibility with your buying audience and it’s cost effective! It’s also timely since people who find you are already in the buying /sales cycle. Read the book Inbound Marketing. It’s full of ah-hah moments that will get you rolling with new marketing strategies.  Check your web site grade against your competition with this free tool; website grader.  Here’s a shout out to our friends at Hubspot for a great product too!

3. Keep your overhead and costs low:  Now’s the time to negotiate. Review all overhead costs. Landlords want stability and many will take lower rent for a longer lease time-frames.  Make sure expenses have a tangible or intangible return on investment before spending. However, don’t avoid investments that make your business stronger. While most of your competition is holding back, you’ll be building your business.  Don’t just survive, work to thrive. And work it will be, so get your hands dirty.

4. Use technology: Now more than ever you can’t afford to let a lead fall through the cracks!  (Don’t you hate that feeling when you’ve checked in on an older lead that bought from someone else? It’s like dropping an easy fly ball in baseball, you just want to kick yourself! ) Good habits in lead follow-up should become business work-flow supported by your internal CRM (Customer Relationship Management) software.  It’s easy and cost effective to set up lead capture capabilities; have automated messages sent if you forget to call the lead on time, have a manager watching to make sure no lead gets left behind.  I’ve never seen a company suffer from too many sales! 

Accounting and ERP software: Make sure your CRM software is tied to your Accounting and or ERP software. How many times are you entering information twice? When your sales staff needs to see sales history do they need to take that extra step to check with finance? Is the account your salesperson is spending valuable selling time on credit hold?  Open your organization’s information to employees that can improve sales effectiveness. Make information easily available. Make communication easier and a top priority.

5. Get your hands dirty.  Talk to your customers. Stay involved. There’s a time and place for delegation, however customer service excellence will need your personal attention. I was personally moved when a recent new customer spoke with our references and made a point to call me and say how happy our clients were; that my customers all mentioned how important it was that I personally get involved in assisting our client base. That I answer the phone!  I felt proud. And I have a new client because I don’t always delegate.

6. Leave your corner office: I’m a personal believer that the corner office is an obstacle to building corportate culture, mentoring new employees, sharing ideas, helping sales people sell. Put yourself in the middle of your team without walls.  Listen and be listened too. Make sure top sales people sit next to rookie sales people.  Marketing should be able to hear a daily exchange in the sales world. Walls are sound barriers and only serve to slow an companies learning curve and effectiveness.

7.  Avoid the bank!  Learn to self fund.  Avoid outside investment and maintain your equity. Now more than ever, lenders aren’t as willing to lend. Better to be self reliant. Build cash reserves. It’s no different than financial advisers suggesting you have 6-12 months of cash to survive a time of unemployment. Give your business the same cushion.  

I’ve use each of these principles in my business every day. I’ve recently seen local respected competition sell their business firms outside our geographic area and yet, we’re able to continue to invest in our business and our local economy.  More than being a business owner I feel we’re helping contribute to society. Providing jobs and working to help our clients do the same!