Download Surviving in a recession

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.
2.
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5.
Through part-time jobs
Participate in affiliate marketing
Part-time coaching or teaching
Locums
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.
2.
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8.
Spend idle time on phone
Too much talk and less work
Leaving too early from work
Too much time on face book and other chart
sites
Taking extended breaks from work
Complaining all the time
Reporting late for work
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.
II.
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
Necessities
I.
II.
You already have an advantage-medicines
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.
V.
If you intend or are in trade or service based,
green services are attractive segment now
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.
II.
If you can take public transport, it will be a
cheaper alternative
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
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Learn from mistakes
Improve yourself consistently
Go the extra mile
Be proactive rather than reactive