Want to make your business recession proof?

The best way to handle a recession is to be prepared for one. This was some really timely advice about two years ago. Maybe you were listening. Maybe you weren’t. Regardless of what you heard, how you prepared, and where you’re sitting right now, it’s not too late to make some adjustments. Businesses that learn to survive in the current market are going to come out of this slump ready to reap the benefits of new SELF-GENERATED economic growth.
While most 21st century business can’t operate without computers, the IT industry isn’t exempt from cut-backs and downsizing. The key is to build and maintain a core base of clients that will help you smooth out the ebb and flow of the world economic cycle.
I’ve had the privilege of working on my recession-proof business plan with Robin Robin's, best-selling author of Technology Marketing Toolkit.(Technology Marketing Toolkit). Her strategies have helped my IT business not only grow, but grow ‘smart’. Robin’s business philosophy doesn’t include throwing ideas (or money) against the wall to see what sticks. There’s no flying by the seat of your pants. There’s no ‘managing by crises’. There’s just a straight-up, proactive and methodical approach to building a strong vibrant business.
One of the most important ideas I gained during my coaching program was “Subscriber” theory. In any industry and in almost any business, there is the opportunity to offer clients a subscription or maintenance program. Robin’s program for developing a recurring revenue base is brilliant and timely. It’s a program that takes some hard work and committed effort: Make sure everything you sell has “subscription income” tied to it. Think creatively to discover what “regular maintenance” you can provide for your clients. This will dramatically impact your sales and profitability over the medium and long term.

“Now, more than ever, you have to get out of the “magic pill” mindset, roll up your sleeves, and go to work,” Robin explained. “Lazy business owners who aren’t willing to do the work will dry up and disappear first.”
If your business is like mine, clients have less money to spend on your products and services, and you have less to spend on marketing. What I’ve learned is that you don’t have to spend a fortune to use better marketing tools and dramatically increase your sales.
Here are a few more of Robin’s tips; shared with her permission:
1. Instead of being vague in your claims about how you can help your clients, post testimonials and case studies that demonstrate how you were able to get tangible, measurable results for your other (similar) clients.

2. Raise your rates. Believe it or not, raising your rates can actually help you close more sales, even if the economy is tight. Many people judge value based on price…as the old adage goes, ‘you get what you pay for’. Plus, clients often won’t quibble over a 10% to 20% increase in rates if they are getting great service.

3. Refine your marketing to spend more on highly-qualified prospects. Here’s an important exercise: study your best, most profitable customers and dedicate 100% of your marketing dollars and efforts on marketing to other businesses just like them.
4. Write press releases and tip lists. Newspapers love tip lists like the one you are reading. Post your newsletters in the local Chamber of Commerce, Office Supply or Copy Center, coffee shops, auto repair centers, and other public places that will allow you to leave material. Remember, business owners go to these places too.
5. Make a concentrated effort to communicate with your existing clients MORE – offering them more services, more products, and reminding them of all the things you can do for them. Obvious, yes. Often done, no. Choose a product or service, and come up with a generous, irresistible offer at least once a month.

6. Beef up your referral system. If it’s been more than a month since you last asked a client for a referral, go back and ask again. Make sure you have a good referral reward system that thanks your clients for the leads they graciously give you.

7. Ask your vendors for marketing dollars and support. Vendors want you to sell more, so take your area rep to lunch, and see what MDFs (market development funds) are available. If they don’t have hard dollars to give you, they might have other incentive programs, discounts, promotions, or support they can provide.

8. Have an aggressive guarantee. It demonstrates your confidence in your product or service and will often differentiate you from the competition. If you really want a guarantee with teeth, then guarantee a result.
Take it from me. When (not if) you do these eight tips; you’ll begin to recession-proof your company like I did!

Val Aubry co-founded Main Street Software, Inc. (MSS) in 1984 utilizing her success in the personal computer and accounting fields to grow the business. MSS’s current focus is on the Microsoft Windows NT network platform and small to mid-sized accounting solutions, with an emphasis on Manufacturing & Job Costing. The experience of her staff (75 percent have been with the company for over 15 years) combined with the company’s dedication to their clients is a testament to Val’s commitment to excellence. You can reach her at Val@mssinc.com for more information.