In yesterday’s post we asked leading entrepreneur Mark Williams, not only how he started the company formation process in a recession, but also how he managed to grow it. In today’s post we suggest that by concentrating on your company’s objectives, identifying and incentivising your key team members, your business can grow during the credit crunch.
We are at the half way point of 2009 and the worst economic conditions this country has seen for some time. Let’s face it, the SME sector has experienced difficult times; growth strategies have been switched to survival plans, redundancy packages have replaced incentive schemes and many companies face an uncertain future. However, according to many business analysts, the recession does not spell out disaster for all. Indeed Mary Aitkin, lecturer of marketing and business at West Midlands University, suggests that the recession offers many opportunities for the resourceful entrepreneur to grow their business.
Understand your core business
If you are an established company, concentrate on selling and promotion of the products that are core to your business; don’t be tempted to extend your brand into unfamiliar sectors or markets unless you are confident there is a profitable niche.
Concentrate on your team
The recession presents an unstable future for everyone from the multi national corporation to the graduate employee. Your company’s survival and growth depends on the people who work for you. It is important that your keep your staff committed and motivated.
In tough economic conditions, far too many companies concentrate on attracting new customers on the premise that they will bring in that all important incremental revenue. While this is true to an extent it should not be at the extent of ignoring your existing customer base. In a recession customers gravitate towards brands that offer reassurance and with whom they have a relationship with. Instead of spending your limited budgets on advertising to new customers attempt to maximise the spend of existing ones.
Establish a recessionary mission statement
Define your company’s objectives for the future and establish coherently how you plan to achieve them. Doing this outlines how you plan to structure your company’s growth during the recession and communicates to both customers and staff that you plan to be a part of their future.