Presentation on theme: "Surviving in a recession. definition A period of general economic decline, specifically a decline in GDP for 2 or more consecutive quarters."— Presentation transcript:
Surviving in a recession
definition A period of general economic decline, specifically a decline in GDP for 2 or more consecutive quarters
How recession affects you
The cost of living not only becomes unbearable but ability to purchase significantly diminishes…
Common tricks to surviving a recession 1.Pay off debt 1.Debt if unattended can very easily have a snowball effect and be very difficult to escape from 2.Buy with cash 1.It is harder to spend hard cash than it is to swipe a card, because you physically see the money leaving your purse/wallet, easier to keep track
3..Make yourself indispensable at your job 1.Most companies eliminate those who are not necessary, unproductive or score very low during appraisal. Work hard stay busy 4.Hold on to your investments 1.Selling stocks, bonds or mutual investments is not a very bright idea, if you have ridden the financial roller coster upto this point there is no reason for not hanging on until the economy picks
5.Find ways of earning extra income 1.Through part-time jobs 2.Participate in affiliate marketing 3.Part-time coaching or teaching 4.Locums 5.Provide consultancy 6.Be prepared to unload and sell your old unwanted stuff 1.People out there are looking for a good deal and by advertising on notice boards, garage sales or giving brochure you may raise money
7.Eat at home or carry packed lunch! 1.Planning out your weekly meals will not only taste better but be more healthy and money saving 8.Have your resume constantly updated 1.Not only for any prospective moonlight job but should your employment come to an abrupt end you should be prepared to move on with minimum disruption
9.What not to do at work 1.Spend idle time on phone 2.Too much talk and less work 3.Leaving too early from work 4.Too much time on face book and other chart sites 5.Taking extended breaks from work 6.Complaining all the time 7.Reporting late for work 8.Do not slack on your education, especially if employer offers to pay partially or fully
10.Make yourself marketable 1.Businesses are not the only things that are marketable, people are too. If you have such an outstanding resume and you are the best at what you do, people will take notice and want to hire you. Whatever you choose to do, make sure you are the best at it
Some of hot products I.Information I.It brought you here and many more people are thirsty for information, seek to provide information people could use, apply in your business if an owner II.Necessities I.You already have an advantage-medicines II.Others include, clothes,food, ride to work, place to live and mental stimulation
III.Green products I.Despite the market, green products are still hot and continue to grow, the more natural the easier to sell IV.Green services I.If you intend or are in trade or service based, green services are attractive segment now V.Home improvement I.May be a viable option than going for that holiday, save some money improve the house
VI.Day trips I.Long vacations are some of the expenses that get axed, opt for day outings to nearby places VII.Buy in bulk I.When it makes sense, buy in bulk if the cost benefit is worth it VIII.Save on fuel costs I.If you can take public transport, it will be a cheaper alternative II.Make your home energy efficient
Switching gears when approaching customers is a must during a downturn, you must find new ways to sell to your customers, You do not necessarily need to offer discounts that are ridiculous as this will only serve to lower your businesses perceived value In a recession no business is too small to be handled, every opportunity should be grabbed
Effective communication skills is the cornerstone of successful marketing in business and this is best summed by the 80/20 rule in which we must learn to listen more to the customer (80% of the time) and talk less (20% of the time).. When the customer sees that we are keen to listen to them through the manner the manner in which we feed back to them their queries and concerns the customer feels more confident and hence will give you the business willingly.
Lack of good communication skills means that not only do we assume the needs of the customer but we do not seek to make friendship through effective communication like keeping eye contact, sending positive body language and forcing our opinion on the customer without listening to their concern. When a positive environment exists between the customer and service or product provider then business can take place.
Time management on the other hand defines how we prioritize our time both during a down turn and good times in business. During a down turn through positive utilization of time we focus on productive activities that will add value to both personal and business growth, with free time on our hands we can focus on improving on skills and reorganizing the workplace. Doing community or pro bono work may not seem urgent but is important as this adds value to both our personal lives and the perception of the community within which your business is based, and any free time can be such an opportunity to give back to the society.
For most people a downturn in business tends to bring in depression and fear of failure, however being able to remain positive minded allows one to look at solutions and avoid focusing on the obstacles. Worrying not only diminishes the energy level, but often lets one to exaggerate the problem and in business this would mean a further downturn.
Positive thinking in essence is like being able to determine the response one will have to a problem. The author has rightfully pointed out by focusing on the solution to the problem at hand, one seeks to take much more than the minimum action needed to overcome the problem and move towards business recovery. By going the extra mile and rewarding oneself on successes achieved we develop a winning and positive attitude that can be passed to those around us.
Having a goal is not enough, but by focusing energy, allocating adequate time and resources one should seek to surpass those goals.
MARKETING AND PROMOTIONAL STRATEGIES DURING A DOWNTURN Dormant customers represent a rich and unexplored opportunity especially in a business downturn as these are customers who at one time have done business with you hence are less costly to sell to as opposed to new customers. In order to maximize on the potential of dormant accounts reactivating business with them, through finding out why they stopped doing business with you, offering both old and new products and services including bigger volume discounts to interest them
By ensuring that you remain at the top of mind of your customers (especially your valued customers) through frequent contact both in good and bad times, this will ensure that business relationship is sustained. Another significant point is lead generation which would uncover potential customers that would otherwise have been overlooked, it is equally important to qualify leads and follow up the ones most likely to translate to customers.
one of the most effective methods of lead generation being direct mail is significant, as through direct mail can be used to highlight benefits of the product or service to prospects linking them with their needs. Once prospects see how the service or product can meet their need, they will be more inclined to buy. Another important benefit of lead generation is that by ensuring a steady flow of leads you are cushioning against downturn in business as the leads can be actively pursued and qualified especially when business is low. Through direct mail also active customers can be made to increase both their frequency and volume of purchase
Frequent communication with the customers with emphasis on listening to them, understanding their needs, plans and how you can be a part of their plans allows the customer to view you as an important ally in their quest for success. Therefore it is clear that whereas most businesses would rather cut costs in a downturn, improving and focusing the marketing activities is a viable solution which has been shown to increase business.
So things are tough? What to do Learn from mistakes Improve yourself consistently Go the extra mile Be proactive rather than reactive