Sales Down 30%, Now What? 4 Implementable Actions

Despite rosy claims that the recession is over, many small businesses continue to feel the pinch.

With the end of 2009 in sight, many business owners ponder what's to come in 2010 and beyond. If sales revenues are down, what can a business do to stay afloat? How long can a business sustain less and less customer spending?

Believe it or not, many businesses are growing during these doom and gloom times. The ones that are growing are capturing marketing share from their competitors that are shrinking or downright collapsing. And once the recession subsides, the survivors will thrive.

So how do you survive? How do you stem the huge dips in sales revenue and live to see another day? There are a number of ways, but let's focus on four key actions that you can implement today:

1) External Needs Analysis: get outside of your small business box and ask around. Ask your customers, your prospects and leads: what do you need most? Ask your competitors or collaborators what customers are seeking and needing. Only those businesses that can provide solutions based on needs will attract customers and followers. Find and identify the biggest needs; that's where the spending is happening.

2) Evaluate Your Positioning: once you have a sense on the needs in the marketplace, reevaluate your comparative advantage, or Unique Selling Proposition. This is the statement that summarizes the value you provide in a brief and succinct manner. Ensure that you are positioned to serve the needs you discovered in Step #1. If your positioning doesn't address the needs of the marketplace, it might be time to rethink your business. Also ensure that your target market understands your USP so they can differentiate what you provide from others.

3) Internal Needs Analysis: now that you know what the needs of your market are and you know how to position yourself to address those needs, look inside your company. Determine if you have the resources to get your message to those that most need your services. Resources doesn't only mean money. Remember, the best marketing takes money, time and energy. If you don't have the money, make sure you have the time and energy. Only those businesses with the internal resources to to address market needs will continue to exist.

4) Add Value: if you read this blog frequently, this is a common theme. Recall that value is the relationship between perceived benefit and price. Value is the way you monetize your business and it is a key component to your Marketing DNA. Continue to add value to your customers--even if it means sacraficing a little profit--and you will build your followers. If you can be there for your customers during these tough times, guess who will be there for you when those same customers need a service like yours?

There are other actions to stem the tide--like slashing your marketing budget--but the key is to think long term. Short term actions put out fires, but do not prepare you for the long haul.

To move your business to the next level, think long term. Business may be down 30% now, but if you can stem the tide, you too can have a growing business that captures market share from your shrinking or collapsing competitors.