How Flexible is Your Business Plan ?????

So you have been in business for ten years, have found a niche, and have been doing well - that is, until the recession started. Now your sales are down 30% and dropping fast. Your customers still think you have a great product/service but they just can't afford it right now. No, they won't even buy it at half the price. So what are you to do?

On December 1, 2008, I posted an article asking if your business was ready for a changing economy. Since that time, I have obtained clients who need help changing directions, re-inventing their company, or finding new markets. These are all good business people who ran their companies well. They just missed one important factor - that their market could go away. Maybe it will come back. What if it doesn't? Or what if they (you) can't survive until it does?

If you were prepared .... if you had Plan B and Plan C ready to go, then you are probably doing well these days. If you weren't prepared, what should you do?

I believe that you have to take two courses of action at once, and that is not easy. First, you have to use extremely creative measures to generate as much cash as possible from your existing markets. That usually means taking on numerous promotions. No matter how small the incremental amount of cash is from each promotion, it is necessary to bring in extra cash. This probably goes against the way you have been managing your business. However, it is similar to being stranded on an island. Survival comes first. Then you worry about getting off the island. Before you can go to Plan B, you must survive. You have to stay in business during the transition to Plan B. I suggest that you do anything and everything that will generate incremental sales.

Obviously, the second course is to find new markets. That can be even more difficult - not because they are not there, but because you have to change your thinking and may have to change the way you operate.

• If you only sold to large corporations, you may have to sell to Mom & Pop operations.


• If you sold wholesale, you may have to sell retail.


• If you sold to individuals, you may have to find a way to sell to businesses.


• If you only sold locally, you may need to expand geographically.


• If you sold nationally, you may have to sell locally.


• If you only sold the "main product," you may have to sell the accessories that go with it.

I am sure you get the idea. Why do I say there are still markets out there? Keep in mind that if the unemployment rate hits 10%, that means that 90% of the work force is still employed. That's a lot of customers !!!!!

But it is difficult to change, difficult for two reasons. First, it goes against what you have been doing, what you believe in, your business philosophy, etc. Secondly, you may have to add, change or decrease personnel, equipment, processes, procedures, etc. And you have to do all this while continuing to survive.

My best advice - Don't do it alone. You need someone (or many people) who have not been focused for the past ten years the same way you have. You need someone who is looking at the situation "from the outside." Get help. Hire a consultant. Set up an advisory committee. Call your CPA. Have numerous brainstorming sessions. Do one, do many, or do all of the above.

You can't sit back and watch the sales go away .... unless you want to go out of business. Get moving ....... and Good Luck!