Virtually every businessperson I know is facing the issues of growing receivables and fewer customers willing to spend money. This is most notable in business-to-business companies but certainly being seen across all businesses on “main street” as the politicians would say. I received an email from Ann Guinn of G&P Associates, a business coach for law practices with the following steps that can help companies (not just law firms) in this market:
1. Evaluate Pricing. Get your pricing right or change your pricing to be more managable to your customers. This doesn’t mean dropping your price but possibly offering early payment discounts or flat fees.
2. Closely Monitor Receivables. Stay on top of your receivables and be flexible with customers who are having difficulty making payments.
3. Adapt Your Business. You may need to expand your product/service base or adjust the products/services to serve a different niche that may not be as heavily impacted by the downturn.
4. Understand Customers’ Current Needs. Recognize that your customers may not need the products/services that you normally sell but they may have different needs now than previously. Ask questions to understand how you might help them with their current needs.
5. Learn From Others. Evaluate what other companies in similar industries have done to better serve their clients or expand their client base in this type of economy and learn from them.
Ann is teaching a course on this topic for lawyers on October 28 and 30. It should be really valuable!