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	How To Reverse A Slump In Business

	by Bob Leduc

Every business experiences cycles of heavy sales volume and light sales volume. Periods of light sales volume are called business SLUMPS.

PREDICTABLE SLUMPS

Some business slumps are predictable. For example, every landscaping service expects a slump in landscaping jobs during winter months. Their usual strategy to maintain a flow of business in the winter is to promote another type of TANGENTIAL service such as snow removal. And for many companies (particularly service businesses), the flow of customers can be very SEASONAL –- dropping off during the holidays or summer break when people are busy with other family activities. For most businesses, however, some slumps occur without warning and for no apparent reason.

STAYING CALM

Some slumps occur when you're spending the most time, money, and effort on promoting business. When that happens, it's easy to PANIC and start replacing proven methods of promoting business with speculative ideas. This reaction is especially hazardous for a small business struggling to grow. I know a business owner who almost lost her business when she panicked and reacted to a slump in business by suddenly changing all of her proven advertising messages.

HAVING A PLAN

I've experienced many business slumps over the years. Eventually I developed a simple procedure I can implement quickly to REPLACE the business lost during a slump. You can copy this same procedure to reverse your business slumps when they occur.

TRY TO IDENTIFY A CAUSE FOR THE SLUMP

The first thing to do when a slump occurs is to accept it as part of a normal business PATTERN. It isn't signaling the end of your business. Don't panic. But don't be complacent either. Give the problem your immediate attention. Determine if you can identify something specific likely to be causing the slump. For example:

a recent CHANGE in your advertising or promotional activity
a COMPETITOR rolled out a new marketing campaign
a major news event had a negative impact on your industry
an overall downturn in the ECONOMY

You can develop a STRATEGY to reverse the effects of a slump when you can identify a specific cause for it. Usually you won't be able to identify a specific cause. That's because there is none. Most slumps are temporary and will eventually reverse themselves. However, don't ignore the problem and wait for it to go away. It may take a long time and you can lose a lot of business while you're waiting.

WHEN THERE IS NO OBVIOUS CAUSE FOR THE SLUMP

When a slump doesn't have an obvious cause, it's what I call a NORMAL business slump. I've found the best way to overcome a normal business slump is to take immediate action to develop ADDITIONAL business fast. The additional business supplements the current light flow of business and eliminates the impact of the slump. Here are three actions I take immediately when I realize I'm in a slump. You can implement these same actions in your business to reverse the effects of a business slump.

DEVELOP A SPECIAL OFFER

Contact all of your existing customers and clients and make them a special offer – a discount or 2 for 1 or some other enticement to get them back buying your products or using your services. Use a short DEADLINE so they must take immediate action or forfeit the special offer. Advise them of the special offer using a fast but inexpensive method of communication such as email, faxes, postcards or even phone calls. Also advise your recent PROSPECTS who did not take buying action of the same special offer. Use the same fast, inexpensive methods of communication listed above.

CALL YOUR BEST CUSTOMERS AND ASK FOR THEIR HELP

Explain that business is slow and you want to use the time to approach some potential new customers and clients. Ask them for REFERRALS. Your request will carry more weight if you make a special offer for those customers who help you out – a discount or a free gift for providing you with referrals, and a larger reward if those referrals actually become customers.

TEMPORARILY INCREASE ADVERTISING

You are probably saying, “Business is slow – why should I spend money I don’t have on advertising?” The point is not to waste revenues on just any old marketing effort. Your goal is to make the most of marketing messages that will be seen IMMEDIATELY (or almost immediately) -- for example, website and ezine ads, newspaper ads, First Class direct mail or postcards, radio spots, etc. This is a short-term effort meant to shore up a rough situation.

THE BRIGHT SIDE

Business slumps can be beneficial. Sometimes a temporary action you take to reverse a slump is so effective you decide to continue it after recovering from the slump. The result is a PERMANENT increase in your volume of business.

Bob Leduc retired from a 30 year career of recruiting sales personnel and developing sales leads. He is now a Sales Consultant. You may contact him at for a free subscription.

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