Waxahachie Chamber of Commerce
There have been quite a few ups and downs lately, the Dow was down the NASDAQ was up, your budgets were down (hopefully) your profits are up. CNN just called the U.S. economy 'prettiest house on an ugly block'. This roller coaster we call business has a tendency to throw us into firefighting mode but it’s very important to remain calm and keep in mind some simple keys to success in a down turned economy.
There are 4 mistakes to avoid, helping make your upswing a successful one.
Mistake #1 Hasty Hiring: The thought that if you fire your staff and start new you can get great results.
Real Result: Bad hires that are costly and time consuming. As the saying goes “it’s better to be alone than wish you were.” If you must start with new folks then it’s better to try out new staff members as independent contractors first or temp to hire. Then, after you’re confident that they work well with your team and share your values, bring them on as permanent hires, if it’s just not working out, you have made no commitments and it’s on to prospect #2.
Mistake #2 Pausing Your Profit: No one consciously does this, but it happens all the time.
Real Result: By spending extra time propping up ailing products, divisions or accounts you may just end up discouraging your own growth. Always remember the 80/20 principle: 20% of your product make 80% of your profit, focus on that 20%. Consider offering commissions for selling higher $ items. This will in turn encourage sales from the staff and boost the bottom line.
Mistake #3 Skipping the Six-Month Plan: During a downturn is not the time to put a hold on planning.
Real Result: A scattered focus getting nothing accomplished. With a six-month plan, you will have mapped out the projects for the immediate, foreseeable future and can skillfully avoid manic distractions with poor results.
Mistake #4 Chasing All Sales Leads: The thought that you must close every one that comes in the door, right then.
Real Result: The key is getting to know your client better, and then you may see a referral from them down the road. Be genuine, and listen to them, don't always try to close them, get to know them. Through networking groups like Ambassadors or Lunch Bunch and Fun Bunch we can give you the opportunity build that connection. Just because you have a name and number doesn't mean they are in your market. Look at (or create some) key indicators of who is buying what you are selling, and spend your time on those folks, and try to understand your client on a personal level.