This is the third in a series of blogs on Doing Business in a Downturn.  If you missed the previous blogs you can find them here – Part 1 and Part 2. 

The thing about energy is that it’s contagious, it can go viral.  If low energy enters a high energy environment the low energy is raised to a higher level – it is a scientific fact.

When low energy gathers as a crowd, the compounding impact is that the overall energy of the space and the inhabitants will most likely spiral further down.  Contagion runs rampant.

When energy is raised, whether intentionally or unconsciously, people feel better – their outlook improves, they can see past their immediate challenges and hope shows up, there is a shift in their point of view.  The more often they connect with a higher energy the more embedded and less temporary the feeling of hope and possibility becomes.

How does this relate to doing business in a downturn?  Everything!

There is a direct link between the energy you take into your business and business growth and profitability.

People make different decisions from a high energy space than they do from a place of low energy.   They are more likely to come back.  They are more likely to buy.  They are more likely to tell their friends about you.  This behaviour compounds if, each time they come back, the experience is uplifting and energising.  Buyer confidence is enhanced.

Be super attentive to the level of energy in your business space – to the lighting, the colour, the tidiness and cleanliness, the smell, the overall design, the music – be conscious of what is going on for the five senses of those who enter this space.

Smile, make eye contact, be welcoming, don’t be slothful, stand tall, don’t slouch, use positive language, have pride in your place.

Check in and check out your own energy.  If need be, have a carpark meeting with yourself before you enter the workplace and ask – What message am I sending to my team and my customers?  What does my face say?  Where is my energy at?  Do what it takes to lift your energy and bring the attitude you want to attract.

Don’t buy into the low energy mindset of those who are playing the victim game.

This energy story is even more important when the market place is enrolled in the concept of a downturn and buyer confidence is low.

Here is an Energy Checklist for you to use to keep your energy high in your business.

Less is often more

 

1.  Fewer Focused Strategies 

 

In a difficult market it is very tempting to embrace all of the sales opportunities – to have lots of options – to cover all bases.

There is a wise saying – “If you chase two rabbits, you won’t catch either”.

Having too many priorities often leads to a decline in profitable growth – with so many demands on our time we tend to be doing lots of things poorly as opposed to a few things well – we call this the scatter gun approach.

Consider the reverse – choosing a deliberate and focused set of strategic priorities (one to three) is more likely to lead to growth which adds to the bottom line.  This way time and energy is invested in a more intentional way.

The focus should be on the opportunities where your business will excel, which are on purpose to the vision you have for your business and congruent with why you do what you do.  The key is to turn down opportunities which may on the surface appear appealing and may create lots of activity but require more resources and contribute very little to or erode profit levels.  Don’t confuse increased activity with increased profit.

 

2. Prioritising People and Product

 

Another mistake often made in the excitement of creating growth strategies is to prioritise the development of a new product or service for a completely new market.  This growth strategy is often the least profitable option and the most time consuming.

The Product Customer Matrix is a very simple but very effective tool which compares the ease and the cost of generating new sales.

Let’s consider each quadrant, one through to four.

1. It is most effective to market your current products and services to your current customers.  How many of your customers know everything you currently do or sell?  You know your current products/services and can confidently articulate the value to your customers.  You already have a relationship with your current customers and therefore they are more likely to be receptive to your recommendation.  So consider what needs to be done to educate your current clients about your current products.
2. The next best option is to sell new products or services to your current clients. Again you have the relationship with these clients, a degree of trust already exists and they will be more amenable to your introduction to a new service.  Remember to ask your current customers for advice and feedback before developing new products or services – make sure that the need does in fact exist. See our Customer Collaborative workshops.
3. Following this is… marketing existing products to new customers. Although you don’t know your prospective customer, you do know your product and can clearly communicate its benefits and this is an advantage.
4. It is, however, more difficult to sell new products to a prospect – to someone with whom you have no trading history.

In summary…

Less is more – focus on one to three growth strategies at a time and ensure the outcome is in line with the vision you have for your business

Aim for profitable growth – growth for growth sake is working harder not smarter. Find out where your focus should be by referring to the Product Customer Matrix and use it as point of reference when planning growth strategies.

To download the Product Customer Matrix for Free (valued at $197)