PROACTIVE - Best Practices for all businesses during a time of economic downturn

PROACTIVE - Best Practices for all businesses during a time of economic downturn:-
(CopyRight 2010; Benjamin Goh, www.bensglobal.com)

P for Prioritizing customer satisfaction. Customers are our lifeblood in any economic climate. Proactively take time to call upon key customers (80-20 rule) and discuss how we can serve them better. Incentify existing customers for any new customer referrals. Remember word of mouth is one of the most effective form of advertising.

R for Revisit Your Business Plan. Review it from the perspective of someone about to invest in your business. Strategize and identify additional information that is needed in order to make decisions about the future of the company.

O for Opportunities - Seek new business opportunities (Diversify). Find new markets for your existing products and services or add complementary services or products to your existing customer offering. Focus on your core competency and stretch it to the limit.

A for Alliances. Form alliances with suppliers and complementary businesses. Form conglomerates with other companies complementing your business and jointly seek opportunities. A pack of sticks is harder to break than a single stick on its own. With more eyes looking for opportunities, the probability of winning a new business is much higher. Network and set up advisory boards that include a wide spectrum of professional expertise that they can draw on for advice.

C for Change management. Look for changes in psychology and behavior in your clientele. You can gain a longtime relationship with a customer by approaching them proactively with the view of being there to help them through their own hard times.

T for Time and Money Savings. Between revenue and cost, cost can be controlled effectively and efficiently all the time. Find ways to save time and money and thus, pass savings to the customers. You will not only retain your customers, but you may also attract others.

I for Innovate by diversifying Your Customer Base and Advertising. Review your customer base and reorganize them into vertical industries or markets. Develop vertical market experts to sell into key industries where your major customer base are. With a different advertising or slight modification in the product, you can reach a broader spectrum of the population, perhaps into another vertical market. People are looking for better ways to do business during the economic downturn. If you have established strong customer satisfaction, this is the time to get the message out through advertising.

V for Value-Add by motivating the staff. The employees are most affected during economic downturns due to the fear of personnel cuts. Find non-costly ways to reward and acknowledge their efforts. A simple note of appreciation for work well-done to individuals or departments daily will bring motivation far beyond than can be imagined. When staff are motivated, they will naturally add value to the company as well as to the customer accordingly.

E for Expand Relationships with Existing Clients/ Sign More Long-term Deals. Offer discounts to customers who are willing to sign a long-term contract (blanket order) or who are willing to pay cash up front for a contract. Find out ways that you can offer to fulfil the other needs that your existing satisfied customers have or offer more products and services that your alliances offer.