The only absolute death blow that can instantly kill your business is the prolonged absence of cash flow. Cashflow is the oxygen of business. But every so often an economic cycle comes around that threatens to snuff out cashflow. When this cycle hits businesses it separates men from boys. It distinguishes between business wizardry and foolishness. It sifts the tough from the weak and the agile from the dull.
The COVID 19 pandemic is another one of such cycles. It will hit businesses hard. Rearrange economic opportunities and change the seat of wealth. There are only two ways for businesses to go at the end of this pandemic. The way of more wealth or the way Financial suffocation. Whichever way your business will go you are already deciding today.
As Shakespeare rightly puts it sweet are the uses of adversity but only to those that are prepared. If you sit on the media buying all the litres of lies. Patronizing fear and lamenting over the burning stock market. Oxygen will leave your business. But if you decide to be that business that shines a flashlight in darkness. You will receive a big reward for your courage. One thing is sure in difficult times. Money never leaves Earth. It is still in circulation. It is in the hands of people, somewhere with discretionary spending power that is too scared to spend it. They will spend it when a business hero shows up. And when they can justify these three things. First that it is a necessity or can be perceived as a necessity.
A necessity is any product or service that can help people thrive or bounce out of hard times. Second, is that it is a special thing of preference regardless of whether it is cheap or expensive. Price does not matter. What matters is that a person is willing and able to buy this product regardless of wallet size. The third is that someone actually sells something to them. This is the one business owner can do something about the most. Selling during a difficult time is the most effective use of time. It is effective because most businesses during difficult times are in surrender mode. There are idle, latent, and slowing down operations. They are reducing their marketing budget and saving money because nobody is buying.
The irony, in contrast, is this. Consumers during difficult times are looking for businesses that can help them make wise decisions. They are looking for products and services that can offer them certainty and hope. Their attention quality is at its sharpest. And they are looking for who to believe because the desire to believe intensifies in dark times. Business owners must be mistaken to think that cutting down marketing, and slowing down operations is the way to go. As Clement Stone puts it sales are contingent upon the attitude of the salesman and not the attitude of the customer. Except you are selling a non-beneficial product that cannot be adapted to function as a dependable pillar in troubled times. The way to go is to be out there renovating your products and services. Maximizing and deepening customers’ value. Leveraging the attentiveness of consumers this season. And Zooming out of the economic slump. Just maybe by doing so, you can cause some customers to switch from competitors to your business. Your competitors are all slowing down. This is your best chance to steal their consumers before the lights come on. When consumers are scared to buy the only way to make them buy is to show up as a hero and shine the flashlight of hope.
So, what then can businesses do to strengthen their cash flow this season?
There are three things businesses can do. And only these three things can boost sales and get a business out of a low sales position. The first is to sell to a new customer. The second is to sell in a new way to existing customers. And the third is to sell a New Product. These are the only three options to maximize cash flow in difficult times.
Selling to new customers means finding customers that are a perfect fit for difficult times. It is about diversifying your current customer base. And correcting the imbalance that exists within your current customer base. Diversifying the customer base may mean stepping up to a more resilient customer segment. And it can also mean stepping down to a larger pool of consumers that you can serve at a lower cost. To sell to new customers. Businesses must position their product and services as a necessity or the special thing customers need to thrive.
Technology can be used to reach new consumers at a lower cost. And Strategic partnerships like joint ventures.
Collaborations and alliances can give businesses easy access to new consumers. The key question business owners must answer is this. Who has the ability to buy during a difficult time? What position, justification or reason must I give them to inspire a purchase? Who has already assembled these customers? How can I access these customers through this person? How can I reach these customers in the comfort of their homes? And so on. Different customers are perfect for different businesses in different seasons. And through different strategies.
Next is to sell in a new way. Selling in a new way means selling the same thing to existing customers but changing the way you sell. It is about extracting more money from the same consumers by offering more value. To sell in new ways businesses need to align their product and services to the needs of a difficult time. Products and services must also be positioned differently. The fastest way to do this is to understand the conversations already happening in the consumer’s mind. In their kitchen, living room, bedroom and at night. And to enter these conversations with a suitable product or service. When businesses align their product, services, and message with the fears and thoughts in consumer’s minds. They give consumers a reason, rationale, and justification to patronize them. This is the time to offer more value and show how a business can help its consumers.
Next is to sell something new. Selling something new is about expanding cashflow opportunities and markets. It means three things. The first is to create a new product or service that is perfect for this season. The second is to break existing products and services down into small parts. That can be offered as standalone. And at a cost-effective price. The third is to reposition or renovate an existing product and present it as new. Creating brand-new products in difficult times is easier than it seems. The time freed up from office distractions and endless meetings. Can be invested to create new products. But even if businesses cannot create new products, they can rearrange existing products and reposition them as new. Sometimes selling something new during difficult times can create a whole new business opportunity. That attract free publicity and puts a business on the centre stage. Now is the time to reinvent and double up on value if a business has something great to offer.
This circle of adversity is all around the corner. Businesses are slowing down and consumers are held captive in homes. While your physical business office may be shut down. What you must never do is shut down your mental office. This is the time to think hard and smart. Turn off the TV. Focus only on what you can control. Insist on virtual productivity and strengthen your cash flow. When COVID 19 is over there can only be two types of businesses. The Heroes and the Losers. Which one of them will you be? For more information about how we can help your business send an email to info@createsolidwealth.com
Heroes are forged in the battle Front, not in the centre of Peace. Breakthroughs come by working smarter in difficult times.
