5 ways to keep your business strong and resilient during a downturn.

By Gry Tømte

Let’s face it - the world is a bit wild out there at the moment. Talk of recession combined with bank collapses, builder’s collapses, 10 mortgage rate hikes in as many monthshas all left people feeling nervous, reactive and jumpy.

I speak to business owners every day who are really feeling the effects of this shift in their business.

When the books are slowing down, the cracks start to appear.

Therapists are worried about not hitting their targets, they get bored, things aren’t done on time anymore - because there’s so much time!

I mean, have you ever noticed that when there’s plenty of time, efficiency slows down?

And at the same time, the business owner feels more and more pressure, become more and more reactive and starts to feel like “nothing ever gets done around here!” And “we used to be so busy. Why aren’t you retaining your clients??”

So how can you keep your team motivated, efficiencies up and revenue maximised when the world is in a downturn?

Well, I think it demands a shift in vantage point.

You see, it’s not your job to motivate people. But it is your job to create an environment that inspires motivation.

And the processes and habits to fall back on in the times when motivation is lacking.

Now, I get that creating an environment that inspires motivation and good, high-performance habits is bloody hard at the best of times - let alone when you’re struggling financially or feeling overwhelmed or stressed.

But, keeping your business growing and performing during a downturn means you’ll have to double down and focus on the things within your control., and let the things outsized your control go.

So today, let’s talk about 5 ways you can keep your business resilient and strong - even in a downturn.

1. Lead yourself first.

2. Don’t miss your 1-1’s

3. Balance care and accountability

4. Do a full client journey audit.

5. Market to your database first

Lead yourself first.

Have you ever heard that safety message on a plane “in the case of an emergency an oxygen mask will drop. Please put your own mask first before helping someone else”?

Well, same thing goes for business. If you’re not leading yourself first, you won’t be able to lead your team efficiency either.

Let’s start by talking about understanding and managing your triggers.

Imagine this scenario. Your team member comes in late - again. Hair disheveled. No makeup. It’s the third time this week and you’ve been too busy to approach her, So you just snap! “Is it really so hard to make sure you’re on time and ready for work?? GOSH, it’s the third day this week. You really need to get yourself together!”

Your team member mutters something and walks off. She’s upset for the rest of the day - and clients notice. You’re in a bad mood. “How does she not see it!”

Later that week you find out from one of the other team that she’d lost her apartment and had to stay up all night house hunting, and was really upset about the situation…

Or, one of your team members sends you a text: “hey can we chat later?”

Straight away, your mind starts creating a full story…

“OH SHIT! She’s bloody resigning. My star performer!

I thought she was happy! How did this happen? Everybody leaves!

I better place an ad straight away…we’re going to be so short staffed. How will we be able to look after our clients? And now revenue will drop…”

Umm…all that happened was you getting a text that said “hey, can we chat”.

Sound familiar? In some way shape or form we’ve all been in a similar situation.

There’s nothing worse than reacting in the moment - only to realise it just had the opposite effect on the situation than what you thought or wanted. And that you reacted before you had the full story, or before you had the chance to get to neutral.

So here are 3 things you can consider when it comes to recognising and managing your triggers:

• Identify your triggers: self-awareness is the first step to managing your triggers. You can’t change your behaviour until you become aware of it, and that by identifying your triggers, you can begin to manage them more effectively. To identify your triggers, try nightly reflections; What was the situation? How did I approach it? What was the result? What can I do differently next time? How would the result differ?

• Practice staying present: Try to stay present in the moment. By focusing on the present and what’s happening objectively - without thinking about past experiences that might have you think about the situation with coloured lenses - you can avoid getting caught up in negative emotions or worrying about the future.

• Develop a circuit breaker: Belly breathing, going for a quick walk around the block or asking yourself “is this an accurate version of the situation?” “Do I know this to be true”? These circuit breakers can help you stay calm and focused even in stressful situations.

Don’t miss your 1-1’s.

When the chips are down and the going gets tough, it’s tempting to think “1-1’s are unproductive time we could sell instead”.

Don’t…

When times are challenging, your team will feel challenged as much as you - just in different ways.

As clients tighten their spend, therapists are facing a drop in their key performance measures. And they’re also more often than not struggling to be productive and focused during quieter times. It’s just not easy to stay motivated when things slow down. Let’s face it - there’s only so much cleaning you can do right?

Does that mean you should give up? Absolutely not.

Rather, double down on your meetings and stick to the habit.

• Identify the root cause of any performance issues: If a team member is not performing as expected, try to identify the root cause of the issue. It could be a lack of focus, buy in, training, tools, support - or it could be that your pricing, marketing or retention strategy is not setting them up for success.

To find out, you’ll need to understand what the story behind your numbers are telling you. And to get there you’ll need to get great at asking open ended questions! Once you have identified the root cause (and it may not be what you think it is) you can work together to find a solution. If it’s possible, I always recommend you allow your team member to come up with their own solutions so they can own it and feel the mastery when they overcome their challenges.

• Define clear expectations and set goals. Some team members are great at setting goals - and some can’t see the forest for the trees! When team members don’t set bigger goals, it can be challenging to hold them accountable for growth. But, you can still be clear on what excellent looks like, and what you think they’re capable of.

I always like to ask my team “What do YOU want to achieve in the next……(tip: if they’re not big picture thinkers, set weekly goals instead of yearly, quarterly or monthly)”. Ask them to be specific and set measurable objectives so they and you know when they’re on track. And if they can’t set their own goals, help them along by asking what they’d like to feel confident in, and set bite sized goals from there.

• Hold them accountable for, and celebrate, the process. Some of your team take longer than others to achieve milestones and goals. So instead of only highlighting it when they reach their goals, you can, and should, hold them accountable weekly for putting in the effort required to achieve the goals set.

Focus on the actions they are taking and ensure they are following through with their commitments. And when you see they’re making the effort and making traction, celebrate that. You need to be there to help cheer them on. As a leader it’s important you believe they can get thereand that they know it…

• Provide consistent feedback. If you want your team to lift, one of the things you need to get really good at is to give feedback! I always say “people don’t know what they don’t know”, and if they’re not hitting the mark but no one tells them, that’s on you. You get what you get - and you don’t get upset!

Giving consistent, honest, real time constructive and positive feedback is the fastest way for your team to do more of the things they do well and improve on the things they don’t. We all need feedback so we can course correct when we learn new/ better ways of doing things. A reminder though, always focus on specific actions and behaviours - don’t be wishy washy (aka “you’re so awesome” or “you’re always late”) and never address the personjust the behaviour.

Balance Care + Accountability

Speaking of 1-1’s - no 1-1 is complete without equal part care and accountability. In my coaching practice I find business owners fall into one of two categories;

1. Too much care

2. Too much accountability

One without the other are both equally bad for business.

Care without accountability = a “buddy buddy” approach. Which means a lack of respect, professionalism and growth.

Accountability without care = an environment where people feel like tools and cash cows instead of people who matter,

So, to hold people accountable, the first step is getting to know them.

That means developing empathy, a trusted relationship and a genuine want for your people to succeed. It’s about getting to understand what matters to them, what their limitations and vulnerabilities are, their goals and dreams - and getting an understanding of the level of support and expectations you need to have when you lead them.

Building this trust and connection means when it comes time to hold your team accountable you have the right relationship to be able to do that in a way that is firm but fair. And it’s understood that it’s about enabling people to do better than they think they can.

Which is ultimately the definition of leadership…

Do a full client journey audit.

When was the last time you sat down in your waiting room and looked around? Are there cobwebs in the ceiling? Is your front desk team huddled together, discussing the party they went to on the weekend?

What about the booking process?

The consultation? Do clients get a consultation even if they’re coming for a wax or spray tan? Remember, they have a whole body!

What about the treatment itself?

How well are you solving your clients’ pain points with your treatment menu?

The prescription at the end? Rebooking process? How easy is it? Does it flow? Is it setting your team up for success?

What about the tools and equipment? Do they have time to write notes during every treatment? Do they have an iPad? Or do they have to fight for the one computer in reception?

But hang on, how do clients find you? Is it via friends? Instagram? Driving past? How is your brand conveying what you have to offer?

Remember, your team is responsible for performing the service and rebooking as per your protocols. But you’re responsible for attracting the right clientele.

If you have clients not returning (we all do - but how many??), and your retention is under 80% then it’s time to look at each point in the client journey and see where you can improve things. And if you’re not already doing so, collect feedback so you can course correct real time.

Market to your existing database! Need to get more people through your doors? Before spending money on external marketing campaigns, make sure you nurture and/or wake up your existing clients in your database. It’s free!

If you can, always balance out short term cash boosts with long term growth though. Simply running a 50% off everything sale or an ultracheap treatment campaign to attract new clients will get you a quick cash boost, but if you don’t have a very good strategy for when those clients come in, it can be detrimental later on when you are too busy servicing low value clients instead of your full price regulars.

So, to start with a campaign, first, run a report to see who your ideal clients are. What do people come to you for? What are you known for? Which pain points are you solving for your clients that makes you special?

Once you know which category of services the majority of your revenue comes from, double down on marketing those services to your clients. Create an offer that increases frequency of visitation and average hourly spend.

Don’t forget to align your social media content with the services you’re wanting to drive. And if you haven’t already done so, give your existing clients who love you an incentive to bring their friends in…

Gry Tømte is the founder of the multi award winning skin clinic HÜD, and most recently, The Profit + Purpose Concept. Contact Gry for personalised coaching options

E: gry@hud.com.au