There is no question that the current economic climate is one of uncertainty and turmoil, and we as business owners and entrepreneurs are currently operating in a very high-stress environment. The business landscape has shifted dramatically and those that fail to pivot and adapt, are surely going to be left behind. Is that fair? Perhaps not. However, even in times of uncertainty, there lies opportunity.
So, the question to ask yourself is … “Am I a person who sees the glass half full or half empty?”
I for one, have never been busier than during the Co-vid pandemic here in Australia, which is partly due to my optimistic mindset along with a lust for seizing opportunities as they arise. For me personally, it felt like the business playing field suddenly became even. We were all faced with the same crisis – lost revenue – and no matter how big or small that was going to be, it impacted many thousands of business owners, their staff, and their families.
Are you surviving or are you thriving?
What does your next 6-12 month marketing strategy look like? With no real definitive end in sight to the pandemic, the economic downturn could be catastrophic for any business if they fail to evaluate and consolidate, quickly! Lowering overheads would be an immediate no-brainer, with many creditors, contractors, and expense-related items now readily negotiable. Furthermore, how can your business evolve and offer different products and/or services to a new market (that will still happily purchase), if their needs/wants are met when emotions are triggered?
I have heard of many businesses that were allowed to still trade, having best-ever Q2’s (2nd business quarter) during the lockdown. Retail goods (TVs, freezers, massage chairs), home office supplies, home workout equipment plus IT providers, video communications, and home renovations, to name a few, all recorded sharp spikes in revenue as the general public quickly shifted their spending habits. Some would say they were fortunate with an element of luck on their side.
However, there were many businesses that had to shut their doors and completely revolutionize their method of operation in order to avoid the unthinkable – business death. They are the real business heroes whose entrepreneurial spirit and drive to succeed enabled them to quickly adapt by offering alternative services they otherwise would not have considered previously.
Here are 3 ways to reduce business STRESS and start THRIVING
1. BREAK-EVEN POINT (BEP)
A recession-proof business will have a very clear understanding of the point at which revenue exactly covers costs, which is referred to as the break-even point. In order to calculate the price of your products or services that you offer, there are two “margins” that need to be considered when monitoring business profitability – gross margin and net margin. Understanding these figures helps when setting prices, calculating sales targets/KPI’s plus forecasts and projections, which in turn enables you to estimate gross profit, net sales, and net margins.
To calculate your BEP, you must identify the number of sales needed to be made before all the business expenses are covered and pre-tax profit begins.
2. CONSOLIDATION
When you are not sure where your next dollar or sale is going to come and revenue is hard to predict, this places you in fight or flight situation where anxiety levels will soar! To help gain control back, a quick-fix is to consolidate your expenses (both business and personal) so as to adjust to the new and unpredictable revenue streams.
By consolidating and streamlining, you are making your business stronger and more robust with a clear and focused approach to operations. Take back control and make sure your expenses are not like a leaky ship. If you are not sure how to implement a consolidation strategy, then it would be wise to seek out professional advice and assistance.
3. ADAPT & POVIT
What worked last year, or even in the first quarter of this year, is more than likely not going to yield the same results now. The businesses that are THRIVING have taken the time to evaluate and recognize the shift in their niche market and have subsequently implemented new marketing and service strategies. Expanding the variety of platforms for marketing and promotions is now essential, combining the traditional mediums like print, radio, television, direct mail and telephone with the online mediums such as email, social media, pay per click marketing, search engine marketing plus mobile and messenger marketing.
Adaptive businesses have also identified the need to “fast-track” the normal decision-making process to ensure they are capitalizing on new opportunities. It is not the time to procrastinate and wallow in a victim mentality, as time is of the essence.
Positioning yourself correctly within the market may mean you need to re-evaluate your customers’ needs and wants along with the decision and buying process. Make the sales journey as easy as possible when purchasing your products and services, which may mean you need to regress in order to progress, but ultimately this will result in your business still being there at the finish line.
Finally, an important aspect to consider is that yes you may be stressed out, but your customers are also experiencing high levels of stress! As a result, 5-star customer service should be paramount during a downturn in the market. To help understand your customers’ stress perceptions, you must first understand what triggers their fears and then marketing accordingly. Due to isolation and working remotely, people are craving connection. What can you now offer to tap into the new marketplace and not just survive, but THRIVE!
