Sometimes, business takes a gradual or sudden dip, and the drag may take longer than expected. For example, all US businesses in the retail industry recorded a 16.4% slump in April 2020 alone. Has your company faced any such challenges, and how did you overcome them? If not, here are a few practical ways to reverse the slow spell.
1. Identify the cause
The first step to take is to identify the source of the business slump. Could it be a new direct competitor on the market who has been able to sway your target market? Or perhaps, a negative business review that cost your business? No matter your reason, it’s worth knowing that most of these causes fall into two categories; internal and external. Internal causes ride on the back of having expended all your business strategies, or a lack of innovative business development. Sometimes, it could also be a result of employee apathy to work. An internal cause is easier to manage and work on.
On the other hand, an external cause could be a downward spiral of the stock market that negatively influences a business. In other instances, it could be a drastic change in regulatory policies and systems. However, with external causes, entrepreneurs admit that it can sometimes be quite challenging to deal with because it’s totally out of their hands.
Being in sync with what led to a slump in business equips you with the requisite knowledge to extricate your business from that downturn. In many circumstances, a slump is an early indicator of a bigger problem in your business operations.
2. Revamp your advertising and marketing strategies
After identifying the cause of your business slump, the next measure is to find relevant and appropriate remedies. Sometimes a business downturn occurs due to tired out marketing and advertising activities. Indeed, change is the only constant; this saying is apt in this scenario because taking an objective look at your old operational methods could explain why an immediate change is needed.
It’s absolutely critical not to allow a business slump to linger for too long, as failing to find immediate and ideal solutions could cost you more than revenue loss. Here are some tips on how to revamp your marketing and advertising strategies/activities:
- Design and promote a special offer for your clientele. For immediate results, ensure to run the promotion on a limited deadline. Use economic means such as emails, phone calls, or postcards to run it.
- Request referrals from your existing customers/clients. Referrals make great leads for slow businesses because they thrive on testimonials.
- Recreate targeted social media marketing campaigns and employ the help of influencers such as those at unrulyagency.com.
- Lastly, intensify advertising on media sites where your business can easily be seen or heard—for example, postcards, ezine ads, or targeted radio spots on SiriusXM.
3. Get a newer and fresher perspective on your business
When last did you assess your company’s website to determine its mobile friendliness? Sometimes, being too close to the situation doesn’t allow you to see things from a newer and fresher perspective, which may prevent you from being objective. However, by getting unbiased opinions about your company’s operations, you’ll be doing your business a lot of good.
In another breadth, as an entrepreneur of many years, you may already know the times your business usually takes a slump. It’s even easier to detect when your business is seasonal and naturally slows down in the off-season. When you already have this at the back of your mind, you can factor peak and off-peak strategies into your business plan. To do this effectively, target your demographics and stick to tried and tested ways of promoting sales.
The worst step you can take is experimenting with risky and hypothetical situations that may not be relevant to your business and could spell doom for it. Gaining a new perspective on your company also requires realigning business goals to suit the market and customer needs. Understanding why you’re not getting clients as much as before should get you thinking about how to step up.
4. Re-engage your employees
Apart from your external customers, the people who work for you are the backbone of the company and you should consider them as your internal customers. As front liners spearheading the company’s goals, products, and services, they deserve to be factored in your strategies to turn the business around. By engaging your employees, you create a platform for listening to their concerns and how these translate to work apathy.
To do this effectively, set an employee day aimed at motivating and reigniting the spark they once had. Some business owners opt for a day where all employees spend the day at a recreational park or spa. Mind you, only stick to fun activities you can afford.
5. Target new customers
New customers are always a breath of fresh air for businesses. Even when things are looking slow, an increase in new clients tends to inject enthusiasm and eagerness to perform. Usually, this happens due to a commitment to creating a lasting first impression. How can you target new customers for your company? Start by taking a look at the product or service your company offers.
Can you identify a new target demographic that’s worth exploring? Perhaps your business focuses on strictly male grooming services, but you recorded a massive slump over the months. As a business-savvy entrepreneur, your new market could focus on other aspects of female grooming to give the business a boost. Indeed, there are many more ways and things to do to explore your options.
Finally, although not too common, some entrepreneurs have benefitted from partnering with non-competing businesses. This is only successful when both companies in question rely on the same customer base to operate. Fortunately, this is a useful means to an end when there is a mutual understanding.
A slump in business is nothing new, however, what really matters is what you do to turn things around.
