The stronger your business is, the less likely it is to be
affected by the next downturn in modular housing. Nonetheless you have to be continually
preparing for it.
Strengthening your business doesn’t just involve financial
management. It also includes strategies to retain and broaden your customer
base, market your business affordably, keep morale high among your staff and
improve business practices. You should also look for opportunities to network
and form alliances; this will help minimize your exposure to risks. Doing these
things now will mean not having to ‘play catch’ up if it hits.
To strengthen your business during an economic downturn you
should consider the following strategies.
Making customers a priority
Customer service is about providing your builders with what
they want, when they want it. If your business provides quality customer
service, you have a greater chance of keeping and increasing your builder base.
During a financial downturn it is particularly important to find ways to retain
your existing builders by providing good after-sales service.
Making customers a priority in an economic downturn may also
involve:
- running
loyalty or builder incentive programs - adapting
your products and services to be more suited to your builder’s current
needs - Diversifying
your business to minimize potential damage from the loss of a significant
customer. Think what other types of housing and commercial can be built by
your factory.
Marketing strategies
Reviewing your marketing strategies can help you
come up with new ideas to increase sales and find better ways of using your
marketing dollars. You should focus on communicating your competitive and builder
advantages. It’s important to also develop strategies to measure the
effectiveness of your marketing.
Marketing your business can be an expensive exercise, and
during an economic downturn it’s especially important to explore free marketing
tools available to you, including social media and press releases.
Managing staff
Make sure you have an up-to-date human resources (HR) plan.
Use your plan to detail your staffing costs, which in turn will allow you to
accurately cost your products or services. Will your top reps stay with you if
housing starts drop?
Build morale and motivation by clearly communicating with
your staff what is happening within the business. Try to involve them in
decision-making and finding solutions.
You may also consider training your employees to
undertake more duties. You can conduct a staff skills assessment to
identify the training your staff may need.
Networking
Networking during an economic downturn can be useful to
understand how other businesses are coping. Joining and participating in
organizations like MHBA and reading this blog will keep you informed and better
prepared. You may also discover new opportunities, customers, staff, suppliers
and business partners with minimal cost to your business.
Developing innovative practices
Developing innovative practices may help you adapt
to changing market conditions and stay ahead of your competitors. As part of
this process you should review if using new technology will increase
efficiency, reduce costs and make your business more competitive.
Is a housing downturn in our near future? Let’s hope not but
like the Boy Scouts Motto says “Be Prepared.”
