Business Development Specialists 

Turning  Adversity into Opportunity During an Economic Downturn

• Don't cut back on advertising and promotional budgets.  Studies have shown that during an economic downturn, companies that maintain, or even increase, advertising spending outsell those who cut back.  If you must reduce expenditures, then increase your advertising effectiveness.
  
  
• Try not to scrimp on service or lower quality standards by being understaffed.  If you do cut back on permanent staff, consider outsourcing to consultants and freelancers.  Using consultants and freelancers is a cost-effective option in both bad and good times.  You only hire them as and when you need them.
  
  
  
• Consult with your employees.  They need to feel important to your company and they may have valuable cost-cutting ideas that may help avoid a lay-off.
  
  
  
• Talk to your customers.  In a downturn, they are your lifeblood.  They often make the difference between being in or out of business.  Visit your customers and ask them what you need to do to improve your products and your service.  If possible look for ways you can help them to cut costs.
  
  
  
• Offer new deals and terms.  For example offer discounts to customers willing to sign long-term contracts or pay cash in advance.
  
  
  
• Develop ways to expand sales to existing customers.  For example, establish a pricing structure that encourages volume purchases.
  
  
• Stay close to your suppliers.  It is vital that a close relationship is in place between you and your suppliers, particularly if the partnership is to survive the dramatic changes in plans that may be necessary during a downturn.
  
  
  
•  Seek out new business.  Don't fall into the trap of believing that everyone is cutting back, so there is no point in looking for new customers.  Consider adding to your sales force rather than cutting.  Establish sales coverage in new geographic areas not currently covered by the company.  Use sales agents, on commission to open up international markets.
  
  
  
• Diversify and Innovate.  Avoid keeping all your eggs in one basket.  Develop complimentary products and services.  That way you will be less vulnerable to a downturn.  Nike, for instance, now offers watches and radios to runners, not just running shoes.
   
    
•  Develop new products and/or new uses for old products.  You will keep your customers interested and excited about your products and services, and you will keep your team excited and motivated.