13 Traits – Recession Proof Business

1. It is a time of dramatic change.

One of the hardest things about tough economic times is not the recession itself,  but rather admitting that things have to change – and they have to change right now.  Economic downturns like the price of oil, means companies have to take radical action and dance with the times.  The ability to be flexible, diversify, be forward thinking and solution oriented, in real time, makes all the difference.

2. Recession does not equal failure.

People have a tendency to feel that they are going backwards when they downsize or scale back but that’s not exactly right. Companies that are effective at recession-proofing, succeed because they know times change, and they react accordingly.  Markets change. There will be fluctuations and companies adapt.

In a recession, there is a period of uncertainty and upheaval.  Expect it and it won’t be nearly as difficult to embrace. There is no room for blame, judgement or being the victim of a negative business climate.  Rather, quick adaptability, re-planning, communicating the plan, and getting on with it, are required.  The long term view will always alleviate the short-term pain – focus on that.  Will you make mistakes along the way? – yes.  That’s part of the process and it’s also the place where we are able to innovate the most.

3. Dramatic downturns impact everyone.

Everyone reacts to change differently. Create strong structures of support for yourself and the team – that is essential.  Be encouraged, motivated and inspired by each other. Surround yourself with forward thinking mentors and business coaches who look for “the way” rather than “no way”. Focus on what can be done and what’s possible. Be gentle and respectful to each other in the process.  Be fiercely committed to new and better outcomes. This is the path of recession proof businesses.

There is no time for defeatism and negativity. People in your organization can focus on demise and worry or they can focus on the solutions needed – it’s a choice. Complaining, negativity or defeatism is a luxury that the company and it’s team members cannot afford.  It’s often what people do but it’s non-productive.

4. Business is a network of conversations.

Layoffs, reduction of contracts, structural changes and even an office closing may be the fate of your company in a recession. It’s a difficult time but what saves the day is communication.  Keep your conversations real and on point, as they relate to company agreements and goals. 

Communicate in a way that relays a new and possible future to your team. A future that is inspiring to move toward and is motivating.  Take the focus off the short-term, and communicate the long-term picture of success.  Remind team members that advances in technology are readily available.  You can find almost every solution you need on the Internet today.  Embrace the technology of today to bring about the future of tomorrow.5. Focus on sales.

The more sales conversations you have the more likely you are to increase sales.  Keep your sales pipeline full with potential clients and see them face-to-face where ever possible.  Selling via phone and email will reduce the likelihood of a sale dramatically.  Make it personable and make sales about solid relationships.

Design the selling culture so that it is a consultative experience where salespeople are discovering client needs and not selling a product or service.

Create structures of communication that keep the sales teams connected.  Manage challenges in real-time. Ensure that the team has a venue for expressing problems, and, more importantly, bringing solutions to the table.

Stop doing busy work and start doing the work that brings in the business directly.  Leave those hundreds of emails for later.  How about after you’ve completed 3 hours of focused, intentional sales?

The sales schedule  

– People are most often productive first thing in the morning. Here’s a schedule solution that can work well.

1. 8:30 a.m. can be your team meeting time.
2. It is an important time for forward thinking, smart creative, optimistic, value added client-focused conversations.
3. It’s a time to discuss challenges and turn problems into the solutions that provide value to clients.
4. Schedule sales from 9 a.m. – 12 a.m.  Mornings are better.
5. Work in a focused way.  Work diligently and intentionally in three-hour chunks.
6. Focus on doing the work that brings in the sales. Not just any sales but sales that give clients incredible value.
   

5. The selling proposition.

1. If your clients are hard to reach and often say “no”, it’s an indicator that something is wrong.  Don’t push harder to sell. Stop and check the “value” that clients perceive in the sale. Do the work and modify as needed.  Provide the solutions that bring your clients extraordinary value.
2. Focus on being a disruptor in your industry and have your clients excited and delighted to work with you because you have new ideas and solutions.
3. Build your offerings so solidly that clients can’t say no to a meeting or a sale.  In fact, have it be the opposite  – clients can’t wait to see you because you are solving their problems.
4. This new social era requires a shift in how we market and sell.  Today we are far more emotionally and technologically connected.  Marketing collateral is no longer about your product or service, rather, it’s about how your product makes your client feel about themselves.
5.  Ensure that your team players are star players.

Ensure team members are fully accountable to specific goals. If there are any members of the team that aren’t giving it absolutely everything they have, they are not a match for your company.  If team members are not where they need to be, communicate and adjust. If they still don’t deliver on agreements it’s time to say good-bye. 

6. Cultivate a culture of peak performance and constant improvement simultaneously.

People appreciate acknowledgement for the work they are doing and they also need feedback on where to improve.  That’s a never-ending component of growth that can be implemented into morning meetings. Create a structure for constant feedback and assessment for leadership and team members alike.  Take that feedback and create solutions, improvements, and even more client value.

 

7. The best way to end up bankrupt is to cut your prices. 

Price reduction is a response to economic times and it usually spins into a cycle of demise. When one sales person lowers the price so does another. Then, your competition lowers their price to match yours, and the price wars have begun. Rather than cut price, offer better value, better service, better solutions, and then charge more for it. Have clients be so inundated with client value that they can’t afford to lose you. Dropping price is not an option for recession proof businesses. 

8. Right now your competition is just trying to get through the day. 

This is an opportunity to do what others are not willing to do.  Wake up when the sun comes up. Get the edge.  Brainstorm with your team and focus on solutions that go above and beyond the normal call of duty. Ignite smart creative abilities. Flush out client value that is so extraordinary, that your clients are anxious to buy.

9. Manage accounts payable. 

Cash flow will most likely be compromised during a recession.  People on your accounts payable list may also be in the same boat. Communicate transparently with vendors and let them know of any delays and expected payment times based on changes and adjustments you need to make.  This doesn’t mean not paying vendors; it means respectfully communicating payments in a scheduled way that allows you to manage your cash flow and move through this tight period.

10. Re-calculate. 

Once you have gone over every company cost, every possible efficiency and the ways to diversify, you can then re-calculate your financial outlook.  To have financial control and to put integrity into your projections your accounting has to be correct.  Create a forecast of 12-24 months. The company forecast is the baseline of the operational decisions and it provides the opportunity to stay ahead of the recession curve.

11. Innovate, create and diversify. 

There’s nothing like a downturn in the market to have us question our company offerings.  This is a good thing. It shakes things up and forces us to think about new ways of providing clients with precise value. In a recession, people are more likely to buy more of what they absolutely need and less what they want.  Modify company offering to fulfill on what people absolutely “must have” in recession times.

12. Find ways to allow your clients to buy easily and affordably.

Embrace technology for new solutions.  Google it! Make your offerings simple, easy and super effective.  Ultimately if what you offer, provides value and is a necessity, it’s going to withstand a recession and be super successful when the recession is over.

13. Are you thinking like a true winner? 

People overcome challenges with a very specific and focused mindset.  It’s not “positive thinking” it’s far more than that. It’s thinking, speaking and acting very specifically in a way that has people move in strategic directions. 

Great sports players don’t achieve results by simply exercising “positive thinking”. They are self-aware enough to know that how they think impacts how they act and the outcomes they have. Self-awareness is the foundation of every peak performer and learning to be self-aware is an art that every team member must master.

In the same capacity as sports, peak performers in business are also acutely thought aware.  Thought awareness encompasses, how you think, how you act and how well you do.  Thinking has to be sustainable and holistic in a way that serves you.

1. Think about being healthy, think about being hydrated, think about eating well.
2. Think about being focused and intentional.
3. Think creatively.
4. Think about staying positive and solution oriented.
5. Think about the value you give.
6. Think about the sale “already done”.
7. Think about watching the sun rise and being ahead of your competition.
8. Think about executing the plan you wrote out the night before.
9. Think about what goes into your mind. Protect your mindset by not watching fear based news.
   
10. Think about “what’s possible and what you want to create.
11. Think about being determined and energized. Because when you are conveying a new and positive possibility it’s attractive.  People want to be associated with that energy. People want to work with that energy.  People want to align with that mindset.
12. Think about being irresistible and valuable.  Because your clients can’t help but want to work with an irresistible, positive person who adds value to their bottom line.

It’s show time.

Tina Olivero is a creative, 25-year veteran of business. She is an innovative, tech-savvy, entrepreneur that focuses on elevating companies, communities and people. She spends her time architecting new business ideas, coaching and also has fun as an international speaker.  Her abilities are grounded in a holistic approach that assists clients in overcoming personal and professional challenges.

To book Tina for a speaking or coaching engagement please contact her at tina@theogm.com
or  TransformWithTina.com