First Time Through A Slowdown

This is my first economic slowdown as an entrepreneur.  What do I need to be focusing on right now to boost, or at least maintain, my business and sales?

Don’t Compromise
In an economic downtown, business owners tend to compromise on price.  When competitors begin reducing prices to attract new customers, others in the industry often follow.  Don’t!  If you cut prices, you will resent it, and ultimately quality suffers.  Your best customers are willing to pay for great service but never for poor service.  One of the biggest reasons a customer leaves is due to lack of service, so make it a top priority. 
Strive always to be the highest-quality provider rather than the lowest-cost provider.  It is crucial to distinguish yourself in the marketplace, capitalize on what sets you apart from your competition and always offer exemplary service after the sale.  
Review your operational costs and partner with others in your supply chain to offer the best product and the best service at a price that allows you to be successful.  It might actually be a good time to contemplate a price increase. 
—R. Clifton Schulte, tax partner, Anders Minkler & Diehl LLP

Don’t Wait To Make Changes
As the economy slows, which may cause sales to lag or profit margins to slide, entrepreneurs must be proactive managers.  First look internally and determine areas of better expense control.  Owners/managers must be willing to make hard decisions on all expense items.  Look hard at biddable or competitively priced items such as insurance, cell phone providers, office supplies and delivery services.  Make sure you are staffing in the most efficient manner.  Look hard at your marketing cost, and make sure they carry the true message for your company.
Externally, you must be willing to do the same with your vendors.  Push for better pricing or payment terms.  Look at your financing arrangements, and try to determine better loan pricing or structure.
Lastly, do not wait!  The faster you act, the better chance you have to survive in a constricting market.    
—Mitch Baden, executive vice president and chief operating officer, Royal Banks of Missouri

Stay Productive
We started Standing Partnership in a recession.  Our combination of global experience coupled with personal service we could provide in a smaller firm have always allowed us to grow, whatever the economic conditions.
In a good economy or bad, entrepreneurs should remember three things:
-Take extraordinary care of your current clients or customers.  Protect the business you already have.  Think about new services you can provide and creative ways to help your clients succeed.  Avoid having to replace a client because you haven’t done outstanding work.
-Ask current clients, colleagues and friends for referrals. The people who already know and trust you offer the best place to build business and find new leads.
-Keep up your networking, marketing and sales efforts.  Productively use your team’s downtime during a slow period to do strategic planning, prepare new marketing materials—or just spend time doing things you love with your family and friends.
—Cathy Dunkin, owner, Standing Partnership