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5 Moneymaker Tips For Small Businesses to Navigate a Recession

In a recession the best thing to do is recognize the situation and find ways you can help the customer shrug it off. Gear your benefits to the recession. People still need to engage in commerce but they are looking for value.

1.) Smart business owners have an important recession tactic. They eliminate any perceived buying risk by promoting a money back guarantee, a warranty, and the highest commitment to service. Admit that you have taken these special steps for your customer because times are tough and people should be careful when buying. Figure out what your best value is - it could be more durable products, more services, or longer term warranties. Offer your customers great values and make sure you have pointed these out to them!!

2.) When times are tough you should promote more, not less. Actually, you should never stop promoting. ( A Direct Mail campaign should be high on your list of priorities. It can be on a local level, or to a niche clientele. Post cards work very well. Your mailing should be designed to promote a response. When one design or phrase works -- use it as your basic campaign. Keep records of the response, because your customer data is essential.

3.) Continually work at keeping things fresh! When a hot item is dead it's Dead! Move it out of your highest profile place in the store and put something else there. Many small business owners don't realize how important it is to change their merchandising on regular basis, even if you don't have new items. Especially when business is tough, keep it moving and don't get stale!

4.) Re-negotiate your lease or better deals from your suppliers. For some people this recession will prove to be a great time to start a business. Leases are much more affordable and start-up costs are lower. If you already own a business you may be able to re-negotiate some of your hard costs. Everyone is looking for a better deal and suppliers know they have to do their part to keep their customers in business. Get creative and don't be afraid to ask.

5.) Work hard to make your customer's experience fun and memorable! This applies all the time, recession or not, but in tough financial periods it is important to re-emphasize the essential elements to a good business. According to Andrea Ayers, in a recent Forbes magazine article, "Consumers say that companies not only don't know their needs, they also don't care."

You can't afford to be one of those companies that don't care, and it does not have to be expensive to find creative ways to show that you do.

One trick I came up with has had great results over and over again. While consulting with a gift and jewelry store in California, I wanted to find a way to merchandise lots of odd items of overflow stock that had built up in the back storage room. I gift wrapped all the items into small packages and kept a large barrel at the front of the store stocked with these mystery items, all for the same low price.

Customers loved it! They brought their kids back for extra gifts or added to their sales by picking up a little surprise item already gift-wrapped. It gave us a start for a fun conversation with customers, and made their experience enjoyable. The owner ended up with a lot more cash in her pocket too.

In short, you've got to find new ways combine great value with outstanding customer service to navigate this recession. You'll be building good business practices along the way that will last well beyond the difficult times.

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