Don’t Wait for the Slow Season. Plan Ahead!
Every business is prone to two things- ups and downs. The fluctuations depend on the type of industry you are in. But eventually a time will come when business is not flowing like it used to and it seems like more money is going out than coming in. The last thing you want to do when a slow season appears is to panic. MetroAction has some suggestions!
Work on Your Marketing Budget: When money is tight everyone thinks to cut corners. A slow period in business doesn’t necessarily mean that it is time to tighten the reins. You will want to keep an eye on your spending. But that simply means reallocating funds to where they are most needed. Cutting your marketing budget is a bad mistake that many a business has made. When you cut your advertising, you decrease your presence in the places that can make a difference in your business. If you disappear, no one will know to look for you when things begin to pickup. Whatever you do, resist the urge to do anything less with your marketing campaign. It always works against you in the end. If you need more tips on how make the most of your marketing budget sign up for MetroAction’s Marketing Mastery program at http://scrantonchamber.com/chamber_calendar.php.
Maintain Pricing on Products and Services: In an attempt to change the slow season, many businesses cut their prices to make a sale. This seems like it would work. But look at it from a customer point of view. Across the board price cuts make it seem like you are going out of business. If you are not going to be around, customers may decide to buy from someone else who will be. Cost cutting like this eats into profits. The business may get a boost for a time. But what happens when business is back on the upswing? Do you raise the prices again on the same items? There are other ways to stimulate demand besides cutting the prices. Doing so undermines your own business. Investigate other ways and consider talking with a MetroAction staff member about small business loans that can help you manage your cash flow. Or visit http://metroaction.org/loans.html for details.
Learn a New Skill: Every business begins with a great idea. We play to our strengths. But, there is always more to be learned. Diversifying your business will increase profits. If a client can get more than one service from you, that makes your business more attractive than the competition who only offers one. MetroAction’s Small Business Institute is perfect for new and existing entrepreneurs. It provides practical, hands-on skills needed to develop, manage and grow a successful business. Sign up for the institute today at http://metroaction.org/seminars.html.
Use these tips and think of your slow period, not as a setback, but as an opportunity!