Well, we at odd times now are not you? I’m only 35 so I do not really pay attention to the wider world Digital Marketing Company Bournemouth during the economic crash in 2000/2001, did not really think about SARS when it is in progress, and I just started my first professional job 3 weeks before the 2008 recession began.
Interestingly, that the company approximately doubled during the recession and I learned a few things.
Now, with the 19th COVID virus spreads and oil wars in the Middle East, we seem to be in a perfect storm of things going on that could go either way. That all may recover quickly, and it might get much worse. I’m not a predictor of the future, but I do like to be prepared.
And now, my suspicion is that it will not recover quickly.
So with that in mind, I have some experience to you about what to do to make sure your business survives and maybe even thrive in a bear market where fear runs rampant throughout the business.
Note: This post was written especially for owners of service businesses, but most can apply to anyone really.
“Be fearful when others are greedy and greedy when others are fearful.”
First, I am a big fan of Warren Buffett “Be fearful when others are greedy and greedy when others are fearful.” I do not do that I would use the word greedy second time (although the quote will not work properly if it is a different word), but I would be very happy to use “bold” or “strategic” as I thought it was the same message.
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So now, in your service business, what would I suggest you do to ensure you survive and maybe even thrive?
There are four areas I would pay attention now:
Protect your cash flow
Tightening your sales process
Encouraging clients to double down when there is a chance
Adding more value
Protect your cash flow
First, protect your cash flow. ANA (Association of National Advertisers) recently (here is the link Dropbox to full PDF) released a study showing that “37 percent of respondents reported that extending the term of payment and 18 per cent of reports terms of shortening to the list of marketing services includes agency fees, research, media, production, and talent payments. Meanwhile, 91 percent of the payment terms bookkeeping reports the same. ” They go on to say that “most noted for their services extended payment terms are agency fees, research and production.”
I do not think this is a major cause for concern, but it is something to keep an eye on if the economic adjustment that we see now continue. If you do not have a clause in your contract about the client ends early, talk to your lawyer about the implementation of the ASAP.
Part of protecting your cash flow is client retention as well, so I suggest you make sure you talk to all your clients in the next week so they know you’re there, you do the work for them, and how the amount they are seeking.
And if you have not been reported to them and thus show them the business value of your work, the time to do it.
Tightening the sale and acquisition of clients / customers of your process
Second, tighten up your own sales process. In speaking with the company over the last week or so (as I usually do the first half of each month), most have not seen a decrease in lead or project closure. We also do not see it in the Credo, but I’m ready for it.
If you rely on a large influx of leads so that you are close enough, it may be time to tighten the process sales.
Double above chance
Third, proactive with your clients. If a competitor stopped buying advertising or producing content and your clients have done both and have the potential to catch up or build a trench, then you would do well to encourage them to double down in areas that work for them.
One example of this would be if you Digital Marketing Companies Bournemouth are in a room where a well-funded competitor you have to pay a lot of dollars to be listed at the top of the list of providers on the site such as G2 or Capterra.
