There’s a period of time where most companies experience a moment of business stagnation. If you follow a good business plan, you are probably prepared for such a problem and already working on strategies to overcome that period. As an Orange County marketing agency, at Twelve12, we help companies navigate through difficult periods and come out of them better than ever.
Some of the early signs that your company is heading towards a rough period are:
Null or low growth: if you are experiencing null or low growth rate you have to start looking into the origins of this problem. Sometimes the local or national economy is part of the problem, even the international economy may affect your growth. Sometimes it can be a result of a new competitor, a lack of proper marketing and, for some companies, a result of being not very keen on changing to improve their products or services and making them more appealing to new customers. Even a substandard employee may be affecting your results. The important part here is to determine the origin and magnitude of the problem and design a recovery plan with short, medium, and long-term goals.
Less profit: for many businesses, this is a big problem, especially when they are small. Small business owners tend to focus on sales rather than profit, and sometimes they ever overlook it until it becomes a real issue. Most of the time, a review of suppliers, inventory, and costs will show where the problem lies, and you can act accordingly to return to an adequate profit margin or even improve it.
Not enough customers: Most companies buy enough supplies to satisfy their market as they grow. If at some point you find yourself with more inventory than you usually have, this could be a sign of non-returning customers – that you are losing them or that your client base is decreasing or has stopped growing. When you find this type of problem, you have to look into your marketing plan and strategies, review your competition, and find out where are your clients going and why. It might be just a matter of communication, promotion or advertising, but it can be a number of other things as well, including better offers, better value proposition, better quality, a trendy product, etc. In any case, you need to figure out the kind of strategy that would work better for your particular case.
To find out more about ways to overcome business stagnation, give us a call today! At Twelve12, we have exactly what you need for your Orange County marketing needs and to help your company thrive.