It’s not necessarily true that small business tends to slow down when there’s an economic downturn.  In fact, small businesses that are run well can actually do quite well during slowing of the economy.  Now we’d love to believe that we’re all running our businesses well, so let’s just check and see some of the best things to do during these times to maintain our stability.

Follow a Business Plan

The most important thing, above all, is to revise your business plan.  This is the essence of your business.  Have you gone a different way?  Do you need to change anything?  Is it a good idea to add new directions that you’ve not already considered?  Read over what you’ve got from the point of view of someone just starting out.  Make the changes you need to that seem to be a good idea.  You will probably even think of things that are integral to the growth of your company.

Look For a Coach or Mentor

Networking is the key here, that’s it.  Get a mastermind group with a broad base of professional skills and they can help you make the important decisions.  These guys are great for advice, and new ideas.  People to consider are lawyers, public officials, accountants, business managers, and executives.  Create your own “inner circle” of skilled and influential advisors.  These are people who you can rely on for valuable information about the environment in areas you don’t have any direct experience.  The benefit is exponential and should be shared to mutual benefit.  Social networking clubs like linkden.com are great for establishing these connections and you can even stay in touch using Skype if you’re not physically able to meet regularly.  Make sure to keep privacy a key concern, and objective analysis the main focus.  You’ll get many great solutions and partnerships from these relationships.

If you don’t have a mastermind group, get one.  It’s one of the most valuable support systems you can establish for when things get hard.

Make Client Satisfaction a MUST

You need your customers, and they know it.  They keep you in business.  Treat them with the respect they deserve because you wouldn’t be there without them.  Listen to them more, and you’ll discover the most important things to them… then provide them.  Get creative in finding ways to satisfy your customer needs.  Do a survey and ask.  Remember, it’s easier to keep a customer once you’ve got one, than it is to go out and get more. (And cheaper!)

Develop the customer relationships you already have

Keep your current customer database up to date, and satisfied.  Contact the customers you haven’t seen for a while.  Seek new ways to do more to satisfy their needs.  Maybe offer a new range of products?  If you can get long term clients, you’ll have more security.  Happy customers will be more likely to commit to long term agreements, and often pay up front for better deals.  The security is worth it.  Look for long term deals with customers you already have.  Continuity is the key.

Marketing and Promotion

Cutting advertising expenses is the LAST thing any business should do in an econimic downturn.  Remember, marketing GETS you customers, it’s money well spent.  Get out there and market your arse off, get more customers and sell better than ever.  People are seeking better solutions, get the word out and they’ll come running.

Look for new revenue sources

Don’t put all your eggs in one basket.  Make sure you have many alternative sources of income.  The more places you can get clients from the better.  Don’t just rely on walk-ups and call-ins.  Get more stability by finding at least 3-5 more ways to attract business and keep it.  Maybe offering a similar product, or something that complements something you already provide.  Make sure you don’t spread yourself too thin.  But keep an ear to the ground for things your clients need and ask for.  If there’s a theme, there’s an opportunity asking to be tapped!

Build a Team

Get to know the people closely related to your business.  The places you buy your products, the people in other departments, or similar trades.  Get an alliance with them and it’s possible to cross sell or do joint ventures.  Some of the best partnerships come from the necessity brought about by tough economic times.

Get More Customers!

You’ve probably been selling to the same customers for a while, so what’s to stop you from looking for a bigger piece of the pie?  Does your product fit a bigger audience?  Is there another use for the skills you have?  Think laterally and look for another niche to offer your services.  Maybe something as simple as a translation of your sales material can open up to a whole new community.  Think out of the box.

Know When To Say No

Look for the wastage in your processes and policies.  Tighten the reigns and control spending.  Track down all owed money and get the collection process in place.  Make things more efficient.  Look for discounts on your products and services.  Bulk buys and group buys are a good way to save here too.

What needs to be done right away, and what can be done later?  Look after your relationships with finance companies and suppliers.  Seek deals and negotiate better rates wherever possible.

Make sure you know the value of your customer and consider lowering start up costs to build more customer relationships.  Remember, if you’re having a tough time, they probably are too!

If you do well by the few, they will attract others.

Watch Your Customers Habits

Watch for little signs that something has changed with your clients.  Are they spending more/less, buying up, or holding off?  If you know what’s going on for them, you’ll notice their behaviour if something changes.  Get in touch with them if you notice something, and offer to help.  Keeping your customer in business will keep you in business!

Keep Your Employees Busy

It’s tough for everyone.  Many business fire staff to lower expenses, adding more work to the remaining staff.  Keeping people active is a great way to make sure productivity remains high, business increases and there is no need to reduce employee numbers.  This can also lead to very creative money saving ideas coming from innovative and inspired staff!

Reward strong efforts with public praise.  Let everyone know the good things that are being done and by whom.

These are good steps to develop strength in your organisation regardless of whether or not there is a recession.  You will make more money, improve staff moral, and have a more efficient problem solving machine for your customers.  Get back to the basics and make sure your business is healthy long term.

One of the most important lessons I’ve learned in my selling career is the ability to see things from someone elses point of view. If you can see things through your customer’s eyes, you’ll instantly build rapport and start developing a relationship.

Work backwards. See in your mind where you want the prospect to be. Then envision where they are right now (ask questions to clarify this point of view) and lead them cognitively through the sale.

Opening communication with a stranger can be a daunting prospect for the fresh salesperson. “Breaking the ice” was one term used to describe the process of “first contact.” And it’s good analogy.

Customers have developed a certain amount of healthy skepticism toward sales people and its quite justified. There are a lot of hacks out there that’ll rip you off without a conscience given the chance. So realise this is how the prospect sees you. It’s a valuable insight to begin with.

So how do you overcome this barrier?

Most people will suggest that the first step is to show people that you have something in common with them. Demonstrate that you’re just like them. A simple hello is often enough for a consumer to get directly into the sales process. Others might suggest it’s better to a comment about sports, their kids, something other than what you’re obviously there for. This “breaks the ice” so to speak and loosens the tension.

Not bad ideas, but you didn’t buy this manual to read about something you probably already knew. Here’s something you’ve never heard before. Here’s something extra to make this tip 100 percent profitable.

When you can make someone laugh, all the barriers come down. Laughter is the key to opening communication.

One of the keys to effective selling is to “get it.” In other words, you have to actually get out there and practice so you get a “feel” for how it works.  Do this every day at every chance you get. Say hello to strangers, crack jokes in an elevator. Whatever! Just one step at a time and you’ll learn how to read people and situations more clearly and be able to handle yourself with confidence.

Do something unexpected.

(In a retail/shopfront environment)

Me: (very serious) Hi, How’s it going?

Prospect:  I’m just looking thanks. (Crosses arms)

Me: (Very big smile!)… Wow! … I don’t need all the details buddy… just a friendly hello will do.  (Cheeky grin)

Prospect:  (laughing) Oh, ha-ha, ok… Hi

Me:  Hi, I’m Chris… (Shake hands if appropriate)  Now, what really brought you here today? Just knocked off work? On your lunch break?  Looking for enlightenment?  Trouble at home?  (Grin)

Prospect:  (smiling back and shaking head) Um… Well I’m actually just shopping for one of these.

Me:  Oh good, (wipe imaginary sweat off brow) I know nothing about enlightenment!  Take a seat.

You’ve got to entertain these guys! Now, this is a little over the top so obviously pick your audience, as you certainly don’t want to offend anyone. But if you add the cheeky grin, you’re sure to crack a smile on their faces.

Use body language… If the customer looks like a bit of a hard working outside type, lean on something like you’re at the pub talking to one of your mates you’ve known for ages.

Then bridge the gap. Often your customer will start talking about what they value without any questioning from you anyway. If not, then use what you have in common to ask some questions about what they think about your field or industry. Keep it light, and listen for any ways you can provide a solution to any problems they may have.

One of the secrets to creating laughter is to create tension, then release it. Practice it, and get the feel for what works for you and what doesn’t. We’re all different, but if you get the essence of laughter, you’ll find your selling will improve dramatically.

Tip: Read some books on comedy and watch some stand up acts.

Some people need a more business like approach. Always select your audience. A great line I use when talking to business professionals after a quick greeting is:

Prospect: “I’m just looking”

Me: “Oh good… do you mind if I ask you a few quick questions to see if it’s a good idea we do business today?” — Lead into a qualification

It’s a great time saver for them and you. It cuts through the crap… they’re obviously there to look in order to consider their options before buying. It also presents your intention. You’re there to do business. It’s a great opener because it sets the foundation for the discovery process. It allows your prospect the chance to make a small commitment in exchange for the chance to find a win-win situation.  Most importantly, you’re respecting the client by asking them permission to ask them for information, yet you remain in control.

Generally, Aussies, such as myself, are some of the most relaxed people you’ll ever meet in your sales career. But don’t let this fool you into thinking that they are any easier to sell to. Aussies tend to have a fairly set standard of deciding who’s going to be one of their mates and who’s not. Earn respect right off the bat and you’ll fit right in. Many people are known for their ability to work hard when they need to, and relax when they’re not working. So respect the fact that even if they’re dressed in jeans and a t-shirt right now, they may be an accountant, lawyer or high profile business owner.

“Many individuals have, like uncut diamonds, shining qualities beneath a rough exterior.”    Juvenal

Clients like these have the idea that they’ve tested all the products in the market and they’ve got the one that works best for them. They might have thoughts like the following:

• We are getting the best we can for the price
• All the products are about the same
• We have a couple of problems with service but doesn’t everyone?

These customers present the highest potential opportunity for you at selling. They present to you with an apathetic attitude, to which all you have to do, is demonstrate that there is something better. (And show them how much pain they’ll experience if they don’t change, the motivator!)

Find out as much about their current situation. This kind of customer knows they have some problems, and is open to discussion about them. He is simply closed to solutions because he doesn’t think there are any.

Unfortunately, because they think there are no solutions, they also think they’ve seen it all. This is the typical “Know it all” customer. Or “The ball breaker” as is sometimes called.

Let me be clear, these are the customers I most often sell products to. It takes product knowledge and tactical communication to demonstrate to these people that you are on their side (with all the information) and you’re prepared to share it with them (In return for sale of course.)

What’s the best approach?

“I’d like to know you’re opinion on new product advancements and solutions in [your product area]”

That’s it. They know it all anyway, so you ask them for help. You’ll be let right in the door, and you’ve even set the topic of discussion – your product!

Now all you have to do is sell him on the idea that there are new solutions. Let him know that you are the messenger bringing the new info personally. These are groundbreaking new ideas to help them save time and money, and you’re the first to find out!

If you’ve already got a customer base, and this client has purchased before, make sure they know you’ve put them on the top of the list with this new rollout.

Lastly, if the client is blocking the sales decision, or is not open to the idea, evaluate your time and estimated return. You may be better off talking to a more receptive audience.

“Motivation is the art of getting people to do what you want them to do because they want to do it.”                                                                          Dwight D. Eisenhower

Daily money making activities is about discovering the activities or actions that are earning you the most money and putting them first on your list of ‘things to do.’ My theory is that if you’re focused on getting the money making stuff done, the other things will just seem to get done as a mater of course.

The idea is to resist procrastination and get started doing the essence of you work. This would be called the one principle of a good work ethic, i.e., if you are writing a book, you don’t sit there shuffling papers around your desk . . .  or if you are a sales rep, you don’t just research you product, you get in front of people who are likely to buy from you and you sell the your products.

There is an 80-20 principle I like as well. It’s simply the principle that 20 percent of the things you do are the things making you money and the other 80 percent you could do without. It’s about finding out what your highest 20 percent money making tasks are and spending your time on these jobs. The other 80 percent can be either delegated or completely discarded.

I am talking about simple things such as writing a list of things to do today and then crossing off all but the most important, then rewriting the list with only the top three most important thing on it and doing those. (You can hand the remaining task to someone else to do.) . . . or, if you absolutely need to do the other things, too, set aside one hour of the day to blast through he less important things all in one hit.

Many good sales professionals have a great team working for them who help them keep their calendar booked up with prospective client visits so they do nothing but sell. That’s the environment we’re aiming for. It’s ideal for growth and profit. There’s nothing worse than being scattered between tasks when you need to be focused on the prospect during a presentation.

When you walk into a prospective client’s office, leave everything else outside the door, and I mean everything. Stay focused on what you are doing, if not, the potential client will see you are ‘elsewhere’ and wonder why he or she is not important enough to warrant your full attention and probably go with someone else who does give them their full attention.

Problems are another item that takes away from the task at hand and making money. Try to avoid bringing your problems into the clients office, like I said, leave them outside the door, pick them up on your way out, they will still be there. Hold a meeting with your team to work on the problem; many heads are better than one, if you can’t figure out a solution on your own.

If procrastination is creeping up on you, stop and ask yourself, ‘is this making me money or am I just avoiding something?’ if the answer is you are avoiding something, take a deep breath or go for a short walk, clear your head and get back to work. Stop the procrastination in its tracks, take it away from your desk, stick it in a draw and leave it there until you are ready to deal with it.

Remember the “A” “B” and “C” list of what you should be doing and this should also help you with your ‘Daily money making activities’ and keep you on track.

“Plan your progress carefully; hour-by hour, day-by-day, month-by-month. Organized activity and maintained enthusiasm are the wellsprings of your power”.                 Paul J. Meyer

How is it that some sales professionals hit the mark every time, while others can’t even find the target?

Advances in technology and social networking through the Internet groups, have made advertising an unprecedented and acceptable way to focus their pitch to a select few, namely your prospective clients.

Targeted advertising focuses on specific niches rather than a broad range of interests your potential customer might have. This way, if they know what they are looking for, they will surf right to your website or pick you right out of the phone book because you know your market and you are targeting these specific groups of people, your potential clients.

Say you apply for a credit card. All of a sudden, you get more and more offers for credit cards from advertisers you never even heard of. You’ve been placed on a mailing list or targeted as a ‘more likely purchaser’ of certain items using a credit card then others consumers who have not applied or received a credit card in the past few months.

Of course targeted advertising has been around for years; however, it usually targets small groups of people instead of individuals. If you take out a subscription to a car magazine or a home décor magazine, you will be inundated with offers from car dealerships or home furnishing stores. It’s not exactly “who you are” but rather, “what you are.” What you are is a consumer of home décor or automobiles because you showed interest in these items through your subscription to the magazines.

If there is a specialty magazine for your product or service, first of all, you should be reading it, secondly, you may be able to acquire a list of subscribers from the company. Although, some magazines have a strict policy against distribution of mailing lists, but the names are generated from somewhere, aren’t they?

Things may be changing as new technology in search engines and social networking sites become more sophisticated with information and the possibility of tracking people through purchases and zip codes or phone numbers given at the cash register. Tracking people through their purchases gives the sales professionals an insight into their individual tastes in products and services.

So if you don’t have a website, what would be the easiest way to reach your target potential client? Walk in their shoes, think like they think, do some research. Find out who they are currently doing business with and why. What is your competition doing for them that you can do or offer to do better? What solutions to their problems can you come up with that they haven’t even thought of yet? These are all great questions that will help you hit your target consumer with the right ammunition.
“My advice is to go into something and stay with it until you like it. You can’t like it until you obtain expertise in that work. And once you are an expert, it’s a pleasure.”         Milton Garland