All the evidence is the United States, and therefore the world, is on the edge of a recession. This is a fact that business owners don't control, except in response. Using the perspective of managing the business based on the economy, there are two rules: in a (1) contraction - strengthen your core to (2) gain a multiple in the next expansion from processes under control and therefore better margins.
Book & Series: Recession Proofing Your Business
Chapter & Show 3 - Introduction: How to Make Money in an Economic Downturn
EPISODE 9: Summary
During an economic contraction, it is essential to strengthen relationships with your core or most profitable customers and suppliers. It is an opportunity to gain favorable terms from suppliers and hold on to the customer business. Gaining favorable terms and holding onto great accounts is essential when the economy is contracting. Strengthening the relationship with suppliers is applying the concepts from the Cash Flow Management Funnels. Strengthening the relationship with customers is applying the concepts from Lowest-Cost Producer.
Making Money in a recession starts with holding your customer base as much as possible. Given it costs five times more to gain new accounts and hold customers with existing relationships, it is a proven method of minimizing risk. The place to start or build upon is ensuring the relationship is data based to identify the best opportunities to improve your offer and prices. The next step is to bring this expertise to customers who can benefit from the same cost reduction and relationship improvements. Once you have shown your ability to help them, look for opportunities to bring them inside your operation to do the same. BTW - this also applies to suppliers.
Given a contracting economy with diminishing business opportunities and inflation devaluing the currency, we will demonstrate the need to strengthen the core of the business to not only survive, but thrive.
EPISODE 10: The Schedule (65 Shows)
EPISODE 11: How to Make Money in an Economic Downturn
EPISODE 12: How the Book, Shows, and Podcasts Work Together
We, the IBGR Network, has been using a very simple business model for content creation - make it once and use it multiple times. We looked at the best practices for business talk radio shows, podcasting, and creating eBooks. Then we built a process that integrates all 3.
That lesson is the basis of the Series Recession Proof Your Business. Instead of a weekly show, we have decided to take the subject through all 5 days using our balanced scorecard model. Every Monday we tackle what you need to do on finance, on Tuesday what you need to do for operations, and so forth. That means we will address Recession Proofing from 5 different perspectives and 65 shows. Each show is supported by a LIVE podcast for later review as part of the process of taking what what we provide and using it as it fits your business.
Our support system are the two Private Groups on LinkedIn and Facebook to move the conversation from one-way to creating a dialog and relationship with you. All you have to do is download the pre-release of Recession Proofing Your Business and listen to the podcasts. Our goal for the series is for you, the entrepreneur, to have a proactive plan to use the economic downturn to your advantage.
If you have questions post it here in the comments section or join our groups. Our handle on Facebook and LinkedIn is the same - ibgrnetwork.
See you there.
Next Operations Wednesday - Chapter 7: Data Based Relationships
How to apply today's show to your business:
new choice for BUSINESS SEARCH