How to recover from a business setback

TOYIN KOMOLAFE|

There are too many challenges a business has to face especially during this harsh economic period. Perhaps your small business has been suffering a lot of setbacks, you feel it has hit hard times and it is finally time to fold it up. Hold on, you may need to re-evaluate and re-strategize. You will first of all have to stop blaming someone for your problems, rather you need to consider some business strategies that will help put you on track.

 
Re-evaluate your business
You may have to sit back to evaluate your strengths and weaknesses and possible markets. Ask yourself the hard questions first: Do customers still want to buy the same type of products or services you sell? Have industries and styles changed since you started business? Have you kept up with the changes? If not, what changes should you implement to make your business competitive again?

 
Do you need to develop new products or services? Don’t guess at what customers want and will pay for. Analyze your existing sales and talk to living, breathing prospects. What do they need? What can you provide? What is the best way to deliver solutions to them? What’s going to bring in the most profit?
Explore the Internet
I personally wonder what some people are actually doing on the internet. It is amazing that some people spend an average of two hours a day on the internet, yet they do not use it for anything concrete or tangible. Marketing your products and services online is one very fast and effective way to meet with your potential customers. Some people have even narrowed it down to utilising their Black Berry Messenger (BBM) to send broadcasts on their products and services.
Even when people buy in person or on the basis of personal relationships, they are likely to research the products, company or consultant online before making a decision on what to buy and from whom to buy it.
Try searching Google, you will see an array of business related questions
For example: where to buy cheap furniture in Lagos
Where can I find a Toyota Camry and how much will I pay?
Get involved in social media
Do you know some people actually get paid just for them to retweet a product or service on twitter? This 21st Century requires you have a social media presence. To start with, find out which of the social media sites attracts the types of customers you want to reach and then get active in those channels. Post comments, answer questions, start discussions related to your products and industry.
If you don’t have time, consider having a trusted staff member handle social media tasks. Consider advertising on social media sites, too.
An ever-growing percentage of business people and consumers are reachable electronically via computer, smart phone or tablet for a majority of the day. These people include everyone from teenagers to retirees. The Internet thus becomes a platform to search for vendors, products and prices and be notified of deals, sales and other good bargains’.
Review your customer data base
It will be a mistake to assume that a former customer who stopped buying from you in the past will never buy from you again. Customers’ needs and circumstances change, just as yours do. There may be more prospects from an old customer now, hence you will need to contact your old customers via your data base.
The customer who went with a lower-priced competitor may be dissatisfied with the quality or service and be receptive to a call from you.
Keep ahead of competitors
If a company needs what you sell, there’s a good chance their competitors do too. Industry groups you belong to, trade shows, seminars, and friends in the industry can all help you identify likely prospects. If the people you meet don’t need your services, ask if they can put you in touch with someone at their company who could.
The bigger a business, the slower they are to move. The project that was put on hold months ago may be booming in another few months. You need to keep communication flowing. The more recently you contacted a prospect, the more likely they are to remember you when they are ready to buy.

 
Referrals will go a long way
Recommendations and referrals are among the leading sources for businesses. An easy way to get more referrals is to team up with other businesses who sell to the same market but don’t directly compete with you. Agree to refer business to one another and link to each others’ web sites. Look at possibilities for joint sales, as well. Doing so may allow you to bid on and win bigger projects than either of you could on your own.
Find more ways to make money
If you are a web “content” writer whose market is drying up for instance, step up your skills to write for offline publications, business brochures or magazines. You can also learn to do web design and desktop publishing and add those services to the writing services you offer customers. Other types of businesses might consider licensing intellectual property, selling advertising space in their catalogues, renting direct mail lists, or performing services for other companies that they’ve developed for their own use
Change!
As you are analysing your business, if you see areas that require change, do not hesitate to do so. The key to making change happen – and rebuilding your profits is to list what needs to be done and estimate what effect each change will have on sales and profits. Then prioritize the list. What are the easiest ways to increase profits the most quickly? What should you be doing on a longer term basis to ensure your business continues to grow and prosper? Revise your business plan based on your answers, and then start to work your plan.

 
Be open to new opportunities
Often the easiest way to bring in new business is to sell more to your existing customers. You may be able to sell more of the same product to the same contact, or sell the same product to a different division of the company. Or, you may be able to sell related products and services to the customer. Keep your eyes and ears open for new opportunities and be sure your customers are aware of all of your capabilities.