Recession Proof Selling: Navigate & Survive NZ’s Current Economic Storm
Understanding the Current Economic Landscape
After three decades of unprecedented economic growth, New Zealand’s economy is now facing its first significant downturn since the recession of the late 1980’s. With economic pressures mounting, it’s crucial to fortify your sales approach & ensure your business is resilient.
Unlike the 2009 subprime crisis, which New Zealand weathered relatively unscathed, our current economic climate leaves many business owners navigating uncharted territory – underscoring the urgency to adopt effective sales strategies & tactics.
Economic experts predict a year of decline, followed by a two-year recovery. Stephen Tolpis, Head of Research at BNZ, observed, “The economy continues to bump along the bottom.” In a crowded market, merely maintaining the status quo could jeopardise your business’s survival. The need to act is now; implementing strong selling strategies is crucial to navigating the upcoming economic challenges.
The New Era of Buying and Selling
Consumer buying behaviours have evolved dramatically. With a shift from local to global markets, better-informed consumers, and the rise of mobile and omni-sales channels, a new, faster approach to selling is essential. Relying on word-of-mouth, waiting for calls, or cold-calling won’t cut it anymore.
If your sales team keeps striking the same rock wall & praying for gold, it simply will not work tomorrow. Instead we must explore new ground, adopt new technologies & sift through the tailings for those hidden nuggets & opportunities. This will enable you to firstly survive, then re-skill & re-position your business for when economic growth returns. How have you modernised your sales strategy and tactics?
Cash Flow & Working Capital
Cash flow is the lifeblood of any business, especially during a recession. Consistent, reliable & forecasted cash flow is essential for survival. Richard Branson put it best; ‘Cash flow is the lifeblood of any business, without it a business can’t survive, regardless of how great the product or service is.’
Effective cash flow management is crucial for maintaining stability & seizing growth opportunities. Immediate actions that you take to increase cash flow will make the difference between business survival or failure. Are you generating enough cash right now?
Sharpening your inventory liquidation strategy can be a game-changer. Are you maximising your current offerings? Tapping into both your active customers and re-engaging past clients could unlock immediate financial relief & reduce working capital pressure. This proactive approach not only boosts cash flow but also revitalises customer relationships, setting the stage for future customer growth.
Shift the Selling Paradigm
Recession-proofing your sales effort requires a paradigm shift, most if not all industries are crowded, those that adapt & move the fastest will be the ones that continue to trade over the next 2-3 years. Charles Darwin wisely stated; ‘It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.’ Are you moving fast enough to win the day?
To adapt and evolve your selling capability we suggest a focus across four key areas:
1. Sales Team Structure & Capability
2. Customer Relationship & Engagement
3. Sales Strategy & Tactics
4. Sales Technology & Automation
Sales Performance is Human Performance
High-performing salespeople thrive in challenging environments because they have honed their selling skills & mastery over time. They know who their top customers are, communicate with them effectively, handle objections with poise & uncover explicit customer needs.
Meanwhile the best sales leaders can make all the difference when the market is difficult to navigate & when sales book momentum has slowed to a crawl. They have developed the experience & expertise to support and nurture the sales team through these tough market conditions.
Front-Line Sales: Are salespeople targeting the right customers with the right skills and mindsets? Do they know their top 20% of customers?
Sales Leadership: Do you have the right leader in place? Is your sales leader focused on supporting & growing their sales team or is their attention elsewhere?
Understanding Your Business Liabilities
Adapting sales strategies & maintaining cash flow are essential, but a thorough understanding of your business liabilities is equally critical. In times of restricted cash flow, it’s crucial to have a clear picture of your financial obligations. This includes controlling inventory levels & managing operational costs effectively.
Knowing exactly where your liabilities lie enables you to make informed decisions, prioritise payment plans & avoid unnecessary financial strain. Are you on top of all your business liabilities – fixed and variable?
Future-Proofing Your Business
While addressing the immediate challenges and slowdown is vital, future-proofing your business is equally important. This involves being agile, continuously innovating, diversifying offerings & identifying partnerships to drive a stronger sales & marketing effort. Recession-proofing is not just about weathering the storm but emerging economically stronger & more competitive. Now is not the time to hesitate – act fast!