By Vishal P.
Rao
Starting and running a home-based business has plenty of
benefits and can generate a decent living quite easily, but
the ride isn't always simple. When sales are slow or new
customers are sparse, you don't need to throw in the towel
and call it quits.
Business is a cycle. Sometimes it's booming and other times
it's not, but neither state is permanent. The difference is
that while business is booming, your biggest concern is
meeting the needs of your multitude of customers. When
things are not, you may be scrambling to keep everything on
track.
Below you will find a few suggestions about what to do and
what not to do when your home-based business hits a slump:
1) Keep in Touch with Past Customers
When business is going great, you may have a tendency to
forget those past clients who helped get you where you are
today. Yet, when things slow down, they can be your safety
rope. Now is the time to drop them a friendly email or note
with a pleasant message.
Don't come across as needy and don't tell them you are
experiencing slowdown, but do ask them to keep you in mind
if they have need of your services or if they know of any
colleagues who may be in need as well.
Be sure to include your business card or contact information
just in case they've misplaced it since you last worked
together.
2) Avoid Cutting Prices
If sales stagnate, you may be tempted to boost business by
dropping prices. While a temporary sale or special offer may
attract new customers, if you expect to cut prices across
the board in order to raise revenue then you may be making a
mistake in judgment.
When a new customer can pay $25 for your product during a
slowdown, how are they going to react when you try to raise
that price back up to $35 or $45 after things pick up? Once
you lower prices, it's difficult to get them pack up again,
so cut prices only as a last resort.
3) Make Budget Changes Carefully
When revenue is dripping in instead of pouring, you may need
to trim some budgets, but be careful to make those
reductions wisely. Your first instinct may be to cut back on
staffing, distribution, or customer service. While these
changes may help in the short term, they may cause you to
lose clients in the long run.
Never make any budget alterations that might end up hurting
your customers and costing you business.
4) Never Skimp on Quality or Quantity
Two things determine customer satisfaction: quality and
quantity. If you are trying to cut corners in order to save
money, you may consider making alternations in these two
vital areas.
However, doing so may throw your business into more peril
than any temporary downturn in the cycle. When you provide
services or products which fail to meet the customers'
expectations, you put yourself in a position to lose repeat
business, and repeat business is where the money is.
Also, remember that happy customers are likely to tell
others how satisfied they were with your company. Likewise,
unhappy customers typically don't hide their
dissatisfaction. Maintaining your current level of quality
and quantity, or even increasing it, should be among your
top priorities.
5) Never Appear Desperate
People like to do business with those who are successful.
Therefore, if you approach potential clients with the air of
desperation in your voice, you are more likely to scare them
away than enlist their aid during this difficult period.
Examples of desperation may not just be obvious in what you
say to your customers but also in what you do. For instance,
if you significantly reduce your quote in order to secure
their business, you may be sending them the wrong message.
Stay positive and optimistic. After all, nothing attracts
business like a good attitude.
By following these suggestions, you'll be able to tackle
those bumps in the road and still come out on top of the
game.
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Vishal P. Rao is the owner of
Home Based Business Opportunities
- One of Internet's leading website dedicated to starting,
managing and marketing a home based business.
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