Swim Against the Tide: Various businesses and entrepreneurs have waded through the storms of recession before, but the present recession is showing signs of being something different altogether. Most business development managers view the predicament in one of two ways: some will simply try to hold on to their current customers, while others will make an aggressive attempt to both hold on to what they have and increase their market shares. In a recent blog titled ''2007 — Recession Marketing — Winning Market Share,'' Wayne Hurlbert stated that ''should there be an economic downturn, the prudent course of action is to see an opportunity where everyone else sees a crisis.'' In other words, the best expansion opportunities are revealed when other companies are cutting back — the surging company can always claim the abandoned market share to increase its own.
Get a Checkup: Now is also the time to run a quick checkup on your business. Become a low-cost provider if possible, as price is what will matter to your customers most in times of recession. That said, if you are forced to keep prices high because of inflation, be absolutely certain that a given price is justified by the quality of the product.
Focus On Advertising: The most important thing to do is to make sure your advertising and PR efforts are going strong, because now is the time to increase you customer base. Of course, people need to know that you are helping them to save money in the long run, so exhibit some sensitivity in your publicity by taking into consideration the average family's needs.
Mobilize Your Workforce: Understanding the basics of mobilizing one's workforce and implementing innovative strategies will boost your business development plan to a great extent. The lull in the job market has already created quite a challenge in various companies when it comes to maintaining a workforce. Intermittent layoffs have become the order of the day for almost six months now, and this has affected the public's morale, too. You can avoid a large amount of layoffs, however, through morale boosting incentives that entice your staff to put in more effort.
Assess Your Profit Margins: Figure out the best profit margin that you can impose on your products. Aim for a margin that suits your company's long-term needs while also suiting the hour. An excessive reduction in profit margins might result in a boost in sales but a drastic reduction in revenues. An excessive hike in product prices, on the other hand, might send your customers to your competitors.
Conclusion
It's always easy to fall into a recession, and the US is already doing it. What you can do for your business development in response is to shift the focus to what you can do to help your business thrive. Positive efforts always reap positive results.
