The impact of the "financial crisis" on Entrepreneurs...

This is a guest post by Marion Freijsen.  Marion is cofounder of E.factor, an online entrepreneur community:

I speak at various conferences and events - not just in the US but all round the world. The last few months have been very interesting as a speaker, particularly since my topic is most often related to Entrepreneurship. Those engagements in this particular time, have given me a unique opportunity to compare how things are around the world, what the differences may be between Europe and the US and what the hard similarities that we all share.

Most of all though - the various events have left me feeling inspired. Yes, truly inspired! I find that entrepreneurs are a different breed - a different group of people that despite what the economy does, will always start up businesses, look for ways to get financed, find new channels to work with and in short - make sure that the business world keeps turning. What I walk away with every single time, and ofcourse, I hope this is the same for all those that attend, is that entrepreneurs amongst themselves are TRULY inspirational. There always is  such a buzz in the room, not just because of the panel, or the speaker or any particular element of the event, but simply because of the audience and knowing that they will be there, come rain or shine.  

Whilst the financial crisis is deepening and spreading even further then we ever thought possible - I would invite any politician to come and sit with a group like the one we shared a couple of hours with yesterday. This is where you find the answers to the questions about the future of our economy, the hope that will keep you going and the passion that will make ANYTHING possible.

However, since entrepreneurs are also practical creatures, I would like to share something that I recently shared with the members on our site Efactor.com (a community for/by entrepreneurs). Members have reached out to us to ask how they should look at their business now that economic times are getting tougher and tougher. One aspect that we ourselves have always concentrated on, in good times as well as in bad times, is on Business Development or plain "Sales" if you like. This particular aspect of your business is one of the most crucial and certainly for those that want to survive and even prosper during the recession that is now upon us, you would do well to give it a long hard look.

To give you some ideas to get started with - let me share a number of focus points for you to consider as part of your Sales effort. Use them as a checklist for your own benefit...

Business Development Tips in Good Times and Bad

1. Talk to your existing Clients - ask them what they want and what they are looking for. The better you understand them, the better you can deliver what it is they are looking for. In good times, you may forget to have a dialogue with them as you are gaining new clients all the time. In these times, a dialogue is what may prevent them going to your competitor and delivering what it is they need certainly will!
2. Look back over the past few years at customers that you did loose, and see if you can find out (by asking them would be the very best approach) why they left;
3. Go back over your prospect list of the past 12 months or so - did you actually close those that you had on that list, or did you loose them. If you lost them, again ask them why? And is there a way of bringing them back to your business;
4. Realise that you, as the founder of your company, should be the best Sales person that you have on the team. You have the credibility and you should have the exact pitch. If you cannot sell your own product or service, then you certainly should not expect your team to be able to do it. You are the one that should tell them your vision and have them share it with the customer. Be the best you can be.
5. Your customer service becomes even more important then it already was. Be pro-active in your customer support, don't wait until there is a problem, but reach out to your customers on a regular basis and find out what is brewing before it becomes an issue. Spoil your customer, and they will stay with you;
6. A satisfied customer is the second best sales person you can have (you are the first, remember?). Don't be afraid to ask your customers to recommend you to someone else, ask them for introductions and new referrals and thank them if they do;
7. Who else is interested in your making new sales? right, your investors. Ask them to introduce you to their contacts! Have them refer you to new prospects. And don't forget your friends and family too.
8. Shake up your Sales team - if they were not doing that great during good times, they are not going to make the grade during bad times. Absolutely get rid of under-performers. They not only cost you money (both in salary AND in lost revenue) but they work as a demotivator for the rest of your team. Competition in a sales team is a good thing - every single one of your sales people should strive to be the best.
9. When you are doing deals with your prospects - be creative. Find out what is their motivating factor and play to that.
10. And finally - take a good look at your business model. Recurring revenue is what you want to get if you can. Recurring revenue makes for a nice steady income stream rather then one-off deals that you have to work just as hard for, but generate little in future. You have to fight for every single deal out there - you may as well get a long term revenue stream for it which forms the basis for a stable business and a great cash flow. 

All of these things, and there are many more that we can think of, will help you through the bad times. But they are lessons that you should not forget when we come out of this recession either - they will help you build a stable, solid business with a loyal customer base and steady income. Who could ask for more?

With regards to the recession - yes, it will be here for some time to come and it should most definitely not be underestimated. But don't let yourself be daunted into inactivity either - life goes on. And as I said - in all this - it is the entrepreneurs, starting and shaping their businesses today all over the world, that will make sure that the business world continues to have a solid foundation.

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Marion Freijsen has had over 20 years of extensive entrepreneurial experience in International business with a primary focus on Technology and Sales Management.  She's the author of "The N-Factor, How Networking Can Change the Dynamics of your Business", published in the US in 2007.  You can learn more about her here.