The Key to Selling During an Economic Downturn

It’s easy for a business owner to make excuses for poor sales performance during an economic downturn. But during tough economic times, successful entrepreneurs work hard to find opportunities to increase revenue.

With a slowing economy comes a fiercer, more competitive market that requires salespeople and business owners to set themselves and their products apart from the competition. Here are a few ideas and tips to help a business owner keep their sales strategy rolling even when times are tough.

Set goals and plan accordingly

During economic uncertainty, no business owner wants to find themselves scrambling for business. It’s prudent for each business owner to take a look at their target market, reevaluate their potential buyers, and decide what their business development should look like in the new economic climate.

That sounds simple, but taking a moment to assess and set goals can help any business owner navigate the stress of selling during a market downturn. Understanding the fundamentals can help business owners set realistic business goals to chase.

Invest in training

In any market, a business owner is competing against the best and the brightest. But during an economic downturn, people turn into very strategic buyers who will only buy from the best. After all, if they’re going to spend the money, they want to know that they’re getting their money’s worth, right?

That’s why it can be helpful for a business owner to invest in ongoing training when the economy slows. For one thing, many business owners benefit from having something to do when things are tough, and training assignments might help fill in the gaps when things are slow.

Understandably, some business owners will feel that it’s not wise to spend money on training when they should be saving their cash reserves; it can feel counterintuitive. But the return on investment for the training may be well worth it. Training and continuing education can help a business owner showcase their dedication to excellence, even when recessions hit. As an added plus, some of the businesses that are offering those training opportunities might be offering their courses for less money to boost their own sales, so an entrepreneur can take advantage.

Networking Strategies for Tough Economic Times

Networking can be a powerful tool for developing new business relationships. That said, not every gathering has the potential to make quality contacts even in the best of times. During uncertain times, a business owner’s best move is probably to be selective about the networking events and strategies they use.

At any networking event, the ultimate goal is to make contacts. Successful salespeople (and in turn, successful small business owners) are assertive, and they can introduce themselves without being forceful. Here are a few things business owners can focus on when trying to network effectively during tough periods.

Don’t wait for the clients to call

For most business owners, existing clients are the best asset they have. All too often, a business experiences customer churn because the owner doesn’t follow-up after an initial sale. Staying in close contact with existing clients helps a business build trust and long-term relationships. It’s even possible for a business to show their customers that they’re trying to support their clients during tough times through supportive messaging and maybe even the occasional sale. If nothing else, expressing a simple commitment to not raising prices (even when a business can’t offer a better price) can show customers they’re valued.

As an added plus, customers that feel valued by a brand are a lot more likely to support that brand in the long term and recommend them to friends and family. Even if that customer’s unique circumstances prevent them from making another purchase today, they might remain serious buyers who are eager to make another purchase when things turn around.

Ask for referrals

Even with all of the tools available today thanks to social media and the worldwide web, there is no form of advertising that’s more powerful than word-of-mouth advertising, particularly through referrals. Many satisfied clients are more than happy to provide a referral.

The catch? Many clients won’t give a referral unless the business owner asks them to. And some business owners and sales professionals don’t feel comfortable asking for referrals because they might not have a good rapport with them, or they just forget to do so.

When is it appropriate to ask for a referral? It depends on the situation. Typically, it’s appropriate for a business owner to wait until they’ve established a good relationship with that client. For example, a hair stylist might wait to ask a customer for referrals until they’ve done that client’s cut or color a few times. That said, if they know their brand-new client is thrilled with their results, it might be appropriate for the stylist to ask for a referral right away.

One of the most effective ways to solicit referrals is to offer a perk to established customers. For example, a business owner might give a discounted service or product if a customer shares one of their social media posts or refers someone else. A dentist might give a client a free cleaning if they successfully refer five friends to the practice, too.

Key Takeaways: Adapt and Stay Positive

In a recessionary environment, it can feel challenging to keep selling as a business owner. But some of the most successful businesses have navigated economic downturns by pivoting their strategies. And the most resilient businesses do their best to keep a positive attitude when things are tough. No downturn lasts forever, and for businesses that navigate them, recessions can turn into amazing growth opportunities.

Good luck out there!

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.