Relationships Help You Beat a Recession

Dear Voornaam,

You will hear much about recession survival in the upcoming weeks and months. Unemployment will increase, and consumer spending will decrease. This will lead companies to stop spending, meaning professional service providers will make less money.

I primarily work with four groups of professionals: attorneys, accountants, coaches/consultants, and financial service providers. These folks get killed when "belt-tightening" happens. I went through this in 1999 when the dotcom bubble burst. I went through it again in 2002 after 9/11. I lived it as I started my business in the great recession of 2008, and I saw my own business reduced by 90% at the outset of the COVID pandemic.

During each of these difficult economic cycles, there is one thing that will help you survive and thrive. RELATIONSHIPS.

Three relationships matter most during difficult economic times.

1.      Relationships with Prospects

2.      Relationships with Evangelists

3.      Relationship with Clients

Let's look at each of these relationships and what you can do now to make things easier for yourself in the upcoming recession.

Relationships with Prospects During a Recession

Prospects are people who are qualified to work with you but have not chosen to do so yet. As soon as the recession hits, people think their prospects will not spend money on their services, so they cut back on marketing and business development. This is a huge mistake. You should double or triple your business development efforts during a recession because your competitors will cut back, and you can grab significant market share.

Your sales cycle may increase. It may take more time for people to decide, but if you are the only one speaking with them or speaking with them more frequently, you'll be the person who gets the deal. Frequency of communication builds trust. Start the process of communicating with your prospects now, so they trust you enough to buy from you during the depths of a recession.

Relationships With Evangelists During a Recession

Evangelists are people who advocate for you and your business even though they have not used your services themselves. My friends and colleagues in ProVisors are evangelists for me and my business. We meet several times each month and support each other in our businesses, and we refer business to each other - in good times and especially in bad times.

During a recession, your relationship with your evangelists is more important than ever. They are the lifeblood of your marketing plan because when they refer someone to you, the prospective client's trust (in the evangelist) is passed through to you during the referral process.

The time to start nurturing your evangelist relationships is right now. Begin by staying in touch with them just as described above with prospects. Reach out directly to your evangelists and see if you can connect them with people who can help them in their business or personal lives. Support their initiatives. Attend their events. Advocate for them.

Evangelists are people who will come through for you during the darkest days of your business. Be proactive and strengthen your relationships with them as soon as possible.Â

Relationships with Clients During a Recession

Perhaps the most tenuous relationship during a recession is the one you have with your clients. Belt-tightening is something everyone does when the economy slows down. This means people will find ways to reduce expenses.

Your clients must view you as an essential part of their future. They must view cutting out a relationship with you as painful and impossible to fathom. Begin demonstrating your value to your clients right now. Each time you help them make money, save, or reduce risk, let them know you have done so. It's not enough to do your job - you must also share the result of your work with them as often as possible.

Here's the bottom line: The time to solidify your relationships is right now before we get into the depths of a recession. Your work in this area will help you overcome the dark times and emerge even stronger.

Bookmark this post because you need to refer back to it when times get tough.

Meet Steve Glick - Chicago Real Estate Insider

Each week I share information with you about one of the interesting people in my network.

Today I have the pleasure of introducing you to Steven Glick, a Chicago Realtor, and residential real estate expert. Steve has helped his clients get great real estate deals in hot and struggling markets. He's helped sell many different property types in the most competitive environments.

I interviewed Steve earlier this year for my Inside BS Show, and he shared some valuable lessons about relationship-based sales. Steve and I discuss the power of relationships and how they have given him a competitive advantage.

Follow this link to my interview with Steve Glick, and you'll discover some interesting and valuable information on growing your business, even in difficult times. Â