Coach Frank Bonnin
As anyone who has been watching the news recently can tell, we are looking at the potential (or pretty much probable) recession in the future. Your first inclination may be fear and worry. However, there are things you can do to make your business recession proof. There is no need to panic.
Yes, we are dealing with inflation. We are also dealing with several years in a row of continuous business improvement. Continuous improvement in the GDP and in just about every other marker of business. So, when we say recession right now, what we’re really talking about is returning to the more normal economy. Essentially more like the economy we had before it went gangbusters.
Along with inflation we have rising interest rates. What you must remember, though, is that for the last 10 years interest rates have been at all-time historic lows. These increased interest rates, they’re not huge, they’re not scary. They are a return to what it was like 10 to 15 years ago. Which is historically close to normal related to the economy.
So, yes, probable recession coming. However, not necessarily something to be scared of. Definitely don’t run for the hills but be paying attention to it. You should be thinking about things to guard and protect your business and to make your business recession proof.
In a recession, there are still consumers who are out there spending. Even in the Great Depression of the 1930s, there were people out there spending. So where were they spending their money? They were spending their money where it gave them the best value.
One key to make your business recession proof is to identify the value you provide and communicating that value to your customers. What is unique about your business? What do they get from you they cannot get elsewhere? Make sure they know that they are buying something of value, not just a commodity. Make sure they know they’re buying something that will solve a problem for them. Not just a tool from them to put in their tool shed.
I like the saying, “A hardware store that realizes they’re selling holes in walls is far better equipped to sell a drill than a hardware store that is just sell drills.” The hole in the wall is the value that they are bringing. The tool itself is just a mechanism. Identify the value for your business and then consistently communicate that to your customers. And customers will continue to spend money with you.
How do you identify and communicate the value your business brings to its customers and clients? (Which will help make your business recession proof.) By developing a Unique Selling Proposition and a Guarantee!
We coach all of our clients on developing their own Unique Selling Proposition. A successful USP should be:
- Truly unique
- Exciting to your target market
- Something that will get people talking
- Something that can’t be easily copied, or if it can be copied, it will be an obvious rip-off on the part of the offending business
We also coach our clients to develop their own Guarantee. A successful and powerful Guarantee should be:
- Something that addresses the main frustrations and fears of the customers when dealing with your industry
- Complete – it should say, “either this happens, or we do this…”
- Impressive – sometimes a tall order so it can help to get an outsider’s perspective
For more information and to learn the specifics, download our guide, “The 7 Steps to Creating Powerful USP’s and Guarantees” here: https://wasatch.actioncoach.com/download-instant-usp-guarantee
Our coaches can help you make your business recession proof. If you are interested in a complimentary 1-hour coaching strategy session, fill out this form.
For some additional advice on business challenges, check out this video on the Point of Power.
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