Last updated on October 28th, 2022 at 03:42 pm
When business slows, it can be stressful. While the market may be naturally slowing due to unforeseen circumstances, or for reasons unknown we want to be sure we are doing everything possible to increase sales.
While we do not have a crystal ball, there are some things we can do to help adapt to current situations in our business. And as any business owner knows, adaptability is super important.
That being said, let’s get into what to do when business slows. But first, we need to know why a business may be slowing for you.
Why Business Is Slow
As mentioned above, knowing why business is slowing is just as important as what to do when business is slow.
Business can slow down due to internal or external reasons. Those external reasons might be market conditions or competition. Internal reasoning could be many. Let’s dive into each reason as defining specifically why business is slow, will help you find out what you should do about it.
First up, market conditions. Market conditions could be anything related to the economy, seasonality, legal changes, or consumer trends. It is basically a change in the environment in which you conduct business.
If the economy slows due to a recession like what happened in 2008, or during the 2020 pandemic, then, this would be a market condition a business would have to adapt to.
On the other hand, there could be seasonality in your business. With seasonality, businesses might slow naturally due to consumer demand. For example, if you are working in real estate, business naturally slows during the winter months.
Next up, legal changes. Occasionally, there could be legal or legislative changes to your business that affect how your company operates. A great current event of this would be the issues with tracking codes from Facebook. In addition, the consideration from U.S. politicians is that big tech is monopolized and should be broken up.
Finally, we have consumer trends. With consumer trends, consumers may be more apt to work from home rather than work in an office now. Therefore, the commercial real estate business might slow. Commercial printer sales might decline as well.
Our next external reason for slowing business could be competition changes. Your competition might adjust pricing, and service offers, have a better value proposition, or simply have cleaner facilities.
It is important to conduct competitor research on a routine basis so you are constantly aware of how your competitors is adapting to their environments. This helps you stay on top of their changes so you can adjust your business as well if needed.
While internal reasons why business is slowing might be considered a bad thing, it really isn’t! With external factors, the business has to adapt to those changes. With internal factors, you are in direct control.
That being said, it is usually quicker and easier to solve internal business issues and conflicts.
However, every situation is different. It is up to you to decide what the root of the issue is.
What To Do About Business Slowing
Now that you have a better understanding of why a business may be slow, you can brainstorm solutions on what you can do about it. Remember, adaptability in a business is vital.
Below, we are going to list some possible solutions to business slowing. Not every item is going to be your perfect solution. It may be one, or it may be a few.
1. Market Your Business
This is probably the most common solution to any slowing business environment. However, just because it is the most common doesn’t mean it is necessarily right. While adding more pressure on your sales staff, conducting a large marketing campaign, or spending more on advertising might work in the short term, you might be missing something in the details.
This is why finding out why business is slowing first helps. If you learn your competitor adjusted their value propositions, that could be where your extra business is going. Therefore, marketing more business may not be helpful.
However, if you are looking to market your business online WolfPack can help.
2. Strategic Planning
Strategic planning is a perfect solution if economic trends change or competitors adjust their business models. This gives you time to think about how your business could adapt to the external environment and hopefully have better competitive positioning.
Here are some ways to help you strategically plan.
Conduct Customer Interviews
Interviewing current and past customers can give you insights into why they chose your business, how happy they were, where you could improve, or even why they left or were unhappy.
Perform Competitive Research
Really digging into what makes your competitors so successful, coupled with customer interviews can help your company adjust to changing market conditions. Look for areas like value propositions, pricing, and general customer satisfaction.
Brainstorm New Services or Products
While the market may be slow for the time being, launching new products or services can help bring in extra revenue in the meantime.
Collaborate With Similar Companies
Having a relationship with similar companies is vital to company success. A core function of WolfPack Advising is to constantly speak with others about what they are doing so others can learn as well. So be sure to have relationships with others so they can give you advice.
3. Address Internal Conflicts
If there are internal conflicts in any business, then your business is not operating at full speed. This can surely bring down sales in your company.
Ultimately, addressing those internal conflicts head-on and developing a viable solution can quickly turn a business around.
To help with internal conflicts, we love the book Traction. The book talks about how to deal with conflict, set up business meetings, and get your business on track!
When business is slow, it can be scary. However, finding out why business is slow and coming up with a strategic plan on how to handle it is your best bet. Research your competitors, conduct customer interviews, brainstorm new services/products, collaborate, address internal conflicts, and market your business to make a difference in business slowing.
Is business slowing down for you? Comment below or just send us a message! We are always happy to hear from you and offer our best advice.