During these uncertain times, many business qq find themselves navigating their companies through a new economic reality. Some have seen a dramatic loss of foot traffic, a disruption in their supply chain and other challenges that have slowed business, while others have had to shut down entirely. While these are unprecedented experiences for many businesses, the idea of slowing down or closing for months at a time is something that seasonal businesses deal with year after year.
Characteristics of a slow business
There are several red flags that demonstrate business is slowing down or about to slow down.
Loss of revenue
The first obvious sign is loss of revenue. However, profits may not decrease immediately. If you see early signs of slowing business, you can be proactive and try to prevent profit loss. For revenue loss, the easiest way to track profits is to compare statements from the previous year. Check the same month or quarter from the year prior, noting any significant differences between the two amounts.
Reduction in sales leads
Another characteristic of a slow business is a marked reduction in sales leads. What are the numbers reported by your sales team? Are there fewer cold calls and referrals? Is there an interruption in the sales funnel before your team closes deals? CRM software or another sales-tracking program can show you all interactions between your clients and sales team members to help you keep tabs on these issues.
Slow foot traffic
Foot traffic in a brick-and-mortar business can be hard to track, but you could use counters at entry points to get an idea of how many people are entering your establishment daily, weekly and monthly. Other types of traffic can also point to slower business, like a reduction in website visitors. Fewer website visitors may indicate reduced interest in the type of products or services you offer.
Here are some tips you can take from owners of seasonal businesses. Their experiences in weathering annual downtime can help you manage today’s business slowdown.
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