Historically, one of the first industries to experience the backlash in an economic downturn is the construction industry. But that doesn’t mean that your business has to suffer. Here are several realistic strategies you can implement now to recession-proof your business.
1. Be realistic.
If you have been in this business any length of time, you understand that a “slow down” is inevitable. You must evaluate the level of your productivity. Are there areas in your business that need to be streamlined? Are pricing schedules from your suppliers being closely monitored? During times of economic abundance, dollars slip through the cracks in the interest of expediting projects quickly. Keep in mind that being aware of the prospects of a recession does not equate to having a pessimistic outlook. Rather, awareness demonstrates a keen sense of planning and a commitment to stay the course for the long haul. You must avoid being in a holding pattern; become proactive and plan for the success of your future.
2. Strengthen your relationships now.
Creating strong customer relationships is essential to your business success, and it is an ongoing process. Are there a few customers that you could visit and thank them for their business? Ask for referrals while at your visit. Make a commitment to them that you will do what it takes to remain in business and that you are there to serve them. During these tough economic times, loyalty can mean the difference in getting new sales and waiting by the phone.
3. Beef up your marketing.
The first reaction to a looming recession for many dealers is to tighten the reins of their marketing budget. Get past this urge and understand that investing in and actively promoting your business will only generate more sales. Now is the time to reassess your marketing strategy — not pull the plug on it.
4. Store your acorns.
It may be a silly metaphor, but we can learn a lesson from Mother Nature. Burrowing animals know to put their surplus food into storage for the winter; and you should do the same. Save your money and invest your profits. The best strategy for survival during the economic winter is to have working capital in reserve. Hopefully, you have been growing your savings account from the profits of the last 10 years. If not, it’s never too late to start. Pay yourself first and put at least 10 percent of everything you earn into some sort of savings or money-market plan. Obtain and implement sound professional financial advice.
5. Have an attitude of prosperity.
The most successful entrepreneurs in the world have an attitude of prosperity. In their minds, there is no economic circumstance that doesn’t present an opportunity. It is true that your belief will become your reality. Just try to play golf sometime with the belief that you can’t hit a buried golf ball out of a sand trap. You will swipe at it and miss more times than not. The same is true with your belief about the economic environment. If you choose to believe that times will be so tough that no one will prosper, you likely will fail.
6. Stick to your long-term vision.
At some point in your strategic business planning, you have created a long-term vision for your business. This vision should have included a reason for your business existence. Now is the time to re-connect to that vision and to the very reasons that you are in business. Your long-term approach to your business creates awareness that any economic depression will only be temporary, and when you understand the long-term perspective of your business, it is easier to adjust along the way as necessary.
7. Stay dedicated and persistent.
Unwavering dedication to your profession and to your business is perhaps the most important factor in planning for the future success of your business. Add to your dedication and persistence another essential element: creativity. As a door dealer, you are faced with many opportunities to come up with creative solutions on your projects. Your skills can be used to generate more business and to look for more efficient ways to conduct business. One of the most important areas of concern should be your customer service. There are thousands of ways to creatively improve customer service and to acquire raving fans.. Endorsements from your satisfied customers will be the lifeblood of your business.
Historically speaking, recessions have been relatively short-lived. It is the door dealer who plans to succeed over the long haul that will “recession-proof” their business. There is truth in the old adage, “Failing to plan means planning to fail.” Don’t be a negative statistic. Expect success and solidify your position as the “Dealer of Choice.”
Earl Rivard is the president of marketing for First United Door Technologies, a Tempe, Ariz.-based manufacturer of residential and commercial doors. To reach him, call 866.366.7636. For more information on First United, visit www.firstudt.com.
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