Navigating Tough Economic Times - What You Should Be Doing
5 min read
Originally sent exclusively to The Letter subscribers on June 24. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
Winter is coming, gang…
More businesses are struggling than ever before.
There's no more government support like during Covid, and turnover taxes are more than many can cope with.
Costs are up and margins are tight. But we keep going, yearning for better days.
Recently, 80% of the Instagram followers I asked felt business was tougher than this time last year.
Running a business is like the seasons of the year. If you’ve watched Game of Thrones, you’ll know they often speak about the looming winter…
But there's no such thing as bad weather, just bad clothing. Those who prepare and insulate themselves will win.
More successful companies are born in tough times. More millionaires are made in economic hard times.
There are a few points to ponder when dealing with a winter economy, like we are now:
You’re on your own: It’s your responsibility, not the government's or the economy's. YOU are your own economy.
Think bigger: You’ll get better results.
Know your numbers: A monthly P&L with daily and weekly dashboards are your lifeblood. If you’re in a storm, the latter are your compass and map to steer away from danger.
Direct response marketing: Spend most of your time here.
Your product must be exceptional: It has to be off the scale.
Avoid short-term cost-cutting folly: Don't try to save a fiver to sacrifice fifty quid. This can make you look more profitable short term, but aggressive cost-cutting is often a folly. Question to ask: can you sustain it long-term? People often turn off the investment and marketing taps and cut the team to the bare bone. Customers notice and leave, starting as a trickle that turns into a major flood.
Lean operations: Be a lean machine. Excess fat goes now, as it does all the time.
Reevaluate models: Many are using a model that isn’t fit for purpose. If it just about gets by, it’s useless. The best models for me offer predictable cash flow, where customers buy from you regularly in 4 quick successions (I’ll do an email on this next week).
Hungry audience: If you don’t have an audience that’s hungry for what you do, you'll find it hard for people to buy what you do.
The seasons of an economy - and your role
Spring
Sow the seeds for future returns and rainy days. For me, this would be training staff, buying the property you operate out of, and creating new revenue streams, products, and services.
Summer
Don’t rest on your laurels here, gang. This is when everything is working. Most put their feet up and relax, but that’s not the way of the driven and successful. Now, you need to prune the plants and get weeding. The most savings and profits can be made when you’re busiest and everything is going well.
Autumn
Things start to feel cold but not horrific. You can still cultivate and harvest here. Hopefully, you've looked at your business in the spring, and your pre-planning is paying dividends.
Winter
People start to hibernate. They stop investing and marketing, and they look closed. Remember, spring is next, and you want to be ready. Embrace the winter, and you’ll win the day.
There’s no such thing as bad weather, just bad clothing. In business, there’s no such thing as bad seasons, just bad planning.
My businesses are horrifically seasonal - heck, one of them sells ice cream.
So, I used its name to start a bakery. Winter is perfect for a bakery. Who doesn’t love a carb when it’s cold?
Yours truly at our Rossi bakery in Rochford, Essex. (Credit: Ben Shahrabi)
The plan for business success in tough economic times: become a grassroots marketer, baby.
Create a product everyone loves: This is essential so that when people discover you, they come back again and again.
Ensure return on investment (ROI): The product has to drive results.
You're the marketer: Make sure my plans and theories are implemented. Imagine you're the Prime Minister trying to win office; it's your ideas that prospects buy into.
Your managers are the implementers: Like local politicians, they should be out there, fighting the cause and ensuring that leadership's vision reaches the grassroots.
Local-based marketing: Think of it as running a local election.
Free PR and branding: Scoop it up. Paid PR is for Coca-Cola and Apple. When you’ve got their billions of revenue, consider it.
Trackable spend: If you can’t track it, it doesn't hack it.
Free over discounting: When crafting offers for prospects—people don’t expect free forever, but they do expect discounts forever.
Always have offers: Remember, if we can’t track it, it doesn't hack it. Offers allow us to track grassroots tactics to get customers.
Retention tactics: The aim is to get customers to be habitual, period. How can you get people to trade with you 4 times in quick succession? Do your customers feel like members or just customers? Members are more loyal.
Risk reversal tactics: Reverse the risk for new prospects using guarantees, price promises, and testimonials whenever possible.
Marketing vs. Sales: Marketing generates leads; sales close them. Finding someone who does both well is rare—usually, business owners.
Team cultivation: Serve your team rather than having them serve you. The results are amazing.
I was feeling contemplative when I wrote this…
If you’re wondering what goes through my head for getting and keeping customers, here’s a checklist for you to ponder:
Database-building ideas: This should be a daily thought.
Personalised business cards with offers: Handwritten adds a personal touch.
Direct mail: It's still effective.
Gift bags with offers: A nice way to delight potential customers.
Catalogs for B2B wholesale businesses: Help businesses see what you offer.
Leaflets: I still send over a million leaflets out a year.
Newsletters: You’re reading one—imagine the power of doing this weekly for your sales.
Explainer videos: They help clarify your offerings.
Competitions to build your database: Engage your audience.
Text message marketing: Direct and immediate.
Learn copywriting: The words used in marketing are vital; live and die by your headlines.
Work hard to get reviews: Social proof is essential.
Love publicity: As long as you're not paying for it. Remember, if we can't track it, it doesn't hack it.
Put up a banner: Indicate that your competition is out of business.
Buy a closed business's database: They’ve left behind valuable leads.
Follow-up: If you don’t, you're missing out on potential sales.
Webinars with offers: Educate and convert.
Ask for referrals: It’s one of the easiest things to do and effective.
Flyer car parks with leaflets containing offers: You’ve got a captive audience.
Free samples: Allow people to try before they buy.
Costume characters: Fun way to draw attention.
Your own customer loyalty apps: Notifications are a great way to ping your customers with offers.
Write your own press releases: Control your narrative.
1-Action websites: Sometimes called “squeeze pages”.
Market to the neighbours: If you’re providing a service to a location, leave information with the five closest neighbours.
Quiz to leads
Articles showing your expertise: You write them and send them to the press.
Join me on my YouTube channel, where I’ll answer your burning business questions LIVE.
If you’d like hear me explain these in full, join me for a YouTube Live on July 17 at 7pm, when I'll share exactly how to implement these points. Mark your calendars. It’s not to be missed!
Until next week, I’m James and you’re a marketeer of your business, over an operator of your business… Well, that’s if you want to thrive, rather than just survive.
To your continued success,
Originally sent exclusively to The Letter subscribers on June 24. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
I have a rule, which I am about to break: “never do religion or politics.”
For me to work, and for my companies to work, I need fellow entrepreneurs around to make the economy tick.
Take the energy away from an economy and it’s curtains. We become a nice place to go for a city break.
Here’s my plea ahead of Budget day…