Even though every business owner hopes for smooth and easy progress, they also know that anything can happen to disturb the regular operation.  Larger companies usually have some advantages in terms of financing options or cutbacks in personnel or operations.  Small businesses generally do not have that luxury.  So, it becomes very important for the smaller concerns to have a plan in place for downturns and contingencies. 

Customers

If you are experiencing difficulties, it is very likely that your customers are too.  Adapting to their needs can help you navigate your own problems by keeping them on as paying clients.  Work with them to determine whether any changes will be short term or of long duration.

Staying visible to your customers is also important.  They need to know that you are open and ready to do business.  If the issue is just within your industry or company, contact your clients in a friendly way to let them know you are available to provide them with your service or goods.  If at all possible, increase your presence with an email campaign or through social media.

Concentrate on client retention at least long enough to endure the current crisis.

Become Essential

Even in good times, develop your own niche.  Find out what your customers really need and develop that trait as much as possible.  It could be as simple as outstanding customer service or short, casual conversations to help them understand you are on their side.  Inquire about something they are interested in, like sports, family, etc. 

Review your contracts for flexibility.  Be sure you are not going to be penalized if you can’t deliver, especially if it is no fault of your company.  Incentives for your clients should be considered, but instead of offering a discount, make sure they ask for it.  Or instead of a discount, give a price break for more volume.  If you can be flexible on your receivables terms, that can help out some other company that is also struggling in hard times.

Communicate

As much as possible, don’t keep secrets from your employees.  It is just as likely that they already recognize that your business is in difficulty.  Don’t dismiss suggestions without thinking it through.  If it is not feasible, explain why.  You have great resources in your staff and you should use them to your advantage.

If you want empathy from your clients, you need to show it to them.  Kindness will cost you nothing.  Offer patience with other people who are in the same boat.  Try to practice the Golden Rule.

Be Realistic

Start with the basics and review all expenses and income.  Try to find efficiencies to increase revenue without spending more than you can afford.  

If you have a relationship with an accounting firm or financial advisor or bank, go to them and see if they are able to help you find something you have missed.  They may have worked with other similar companies in comparable circumstances and have some insight into what worked and what didn’t. 

While times are good, develop a safety net.  Plan how you can economize when a downturn hits so that you will be in better shape to weather the difficulties.

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- The Capex Team