Every business experiences cycles of heavy sales volume and
light sales volume. Periods of light sales volume are called
business "Slumps".
Some business slumps are predictable. Every landscaping
service expects a slump in landscaping jobs during winter
months. Their usual strategy to maintain a flow of business
in the winter is to promote a different service such as snow
removal. For most businesses, however, slumps occur without
warning and for no apparent reason.
Some slumps occur when you're spending the most time, money
and effort on promoting business. When that happens, it's
easy to panic and start replacing proven methods of
promoting business with speculative ideas. This reaction is
especially hazardous for a small business struggling to
grow. I know a business owner who almost lost her business
when she panicked and reacted to a slump in business by
suddenly changing all of her proven advertising messages.
I've experienced many business slumps over the years.
Eventually I developed a simple procedure I can implement
quickly to replace the business lost during a slump. You can
copy this same procedure to reverse your business slumps
when they occur.
The first thing to do when a slump occurs is to accept it as
part of a normal business pattern. It isn't signaling the
end of your business. Don't panic. But don't be complacent
either. Give the problem your immediate attention. Begin by
taking the following steps.
TRY TO IDENTIFY A CAUSE FOR THE SLUMP
Determine if you can identify something specific likely to
be causing the slump. For example:
A recent change in your advertising or promotional
activity.
A direct competitor recently rolled out a huge new
advertising campaign.
A major news event had a negative impact on your
industry... such as the announcement of a government
investigation of business practices in your industry.
You can develop a strategy to reverse the effects of a slump
when you can identify a specific cause for it. Usually you
won't be able to identify a specific cause. That's because
there is none. Most slumps are temporary and will eventually
reverse themselves. However, don't ignore the problem and
wait for it to go away. It may take a long time and you can
lose a lot of business while you're waiting.
WHEN THERE IS NO OBVIOUS CAUSE FOR THE SLUMP
When a slump doesn't have an obvious cause, it's what I call
a "normal" business slump. I've found the best way to
overcome a normal business slump is to take immediate action
to develop additional business fast. The additional business
supplements the current light flow of business and
eliminates the impact of the slump.
Here are 4 actions I take immediately when I realize I'm in
a slump. You can implement these same 4 actions in your
business to reverse the effects of a business slump.
1. Develop a special offer for existing customers/clients.
Use a short deadline so they must take immediate action or
forfeit the special offer. Advise them of the special offer
using a fast but inexpensive method of communication such as
email, faxes, postcards or even phone calls.
2. Advise your recent prospects who did not take buying
action of the same special offer. Use the same fast,
inexpensive methods of communication listed above.
3. Call your best customers and ask for their help. Explain
that business is slow and you want to use the time to
approach some potential new customers/clients. Ask them for
referrals.
4. Temporarily increase advertising in media where it is
seen immediately (or almost immediately). For example,
website and ezine ads, newspaper ads, First Class direct
mail or postcards, radio spots, etc.
Business slumps can be beneficial. Sometimes a temporary
action you take to reverse a slump is so effective you
decide to continue it after recovering from the slump. The
result is a permanent increase in your volume of business.
About the Author
Bob Leduc retired from a 30 year career of recruiting sales
personnel and developing sales leads. For more information...
mailto:BobLeduc@aol.com. Phone: (702) 658-1707 (After 10 AM Pacific time)
Or write: Bob Leduc, PO Box 33628, Las Vegas, NV 89133