- You're worried
about a recession.
That's why you're
watching this video.
I've got the three
places you can go,
the three areas you can focus on
to continue to grow your
sales during a recession
or even in the worst
possible economy.
Join me on this episode
of The Dave Lorenzo Daily
to find out how to
survive a recession.
(upbeat electronic music)
Hi, it's Dave Lorenzo.
Welcome back.
This is The Dave Lorenzo Daily,
and each day we come
to you with tips
on growing your revenue.
That's right, we
come to you every day
with sales strategy,
and today we're talking about
how to grow your revenue,
how to sell in a recession.
And if you look at the date
that I'm making this video,
you are probably
thinking to yourself,
why is this guy talking
about a recession?
Things are booming,
but there are signs
on the horizon that a big
time recession is coming,
and you need to be
prepared for it.
Maybe you've discovered this
video during a recession,
in which case, you're
really going to need
the three specific areas I'm
going to tell you to focus on
in order to keep your
sales growth happening
in spite of really bad
economic conditions.
Before we get into that,
I want to remind you
that we're here every day
with a different sales strategy
designed to help you
grow your revenue,
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Okay, let's talk
about the three areas
where I want you to
focus in a recession
or to prepare for a recession,
so that you can win,
so that you can continue
to grow your revenue
regardless of the
economic conditions.
The first area I want you
to focus is on the
high-end market.
It's no surprise
that I am a big fan
of targeting the affluent.
I'm also a big fan of big
ticket, long sale cycle,
business to business sales.
In a recession, those
folks continue to spend.
Now, when I say
affluent consumers,
I mean people who have a net
worth of $10 million or more.
If you look at
previous recessions,
those folks were impacted,
but they weren't impacted
as dramatically as
folks who were counting
on their paycheck on a
day-to-day basis to survive.
If you have a net
worth of $20 million
and a recession hits, and you
lose 10% of your net worth,
you lose $2 million.
That's no small chunk of change,
but you still have a net
worth of $18 million,
still have a net
worth of $18 million
that you can apply toward your
own personal growth strategy.
This is if you're a high
net worth individual.
So, you're still
going to buy things
that have a significant
return on investment
or that help you solve problems
or help you achieve a goal.
If you have a net
worth of say $100,000,
and you lose 20% of your
net worth, that's $20,000.
That's a big deal to someone
who has a net worth of $100,000.
Or if you have a
negative net worth
and you're living
on credit cards,
like 85 to 90% of the
United States population,
and you get hit by a recession
and you lose your job.
You're in big trouble.
You're definitely not buying
products or services at all.
You're just existing to survive.
So, I want you to focus
on the high-end market.
If you're in consumer sales,
focus on high net
worth individuals,
individuals with a net
worth in excess of $10
or even better, $20 million.
If you're in business
to business sales,
I want you to focus
on typically the longer
sales cycle activities.
If you sell private jets, for
example, to fleet managers
at Fortune 100 companies,
your sales cycle
is probably going
to be 18 months or longer.
If you focus right now on
developing relationships
and coveting those relationships
and demonstrating
value over time,
you will be able to continue
through the recession,
because those
folks are not going
to stop purchasing those high
ticket, long sale cycle items
just because the
economy has a setback.
If it's a short recession,
your sales cycle will carry you
through the entire recession.
If it's a long recession,
those folks will probably
look to extend the contracts,
but they won't cancel them,
because they know
they're still going
to need those products,
those services,
at the end of the recession.
The final point is
if you sell services,
and your services are typically
long sales cycle services,
like consulting, I need you
to be really hyper focused
on return on
investment and value.
The demonstration of value
will carry you
through a recession.
I started my own
company in 2008,
and in 2008 everything
went to hell in November.
The economy fell off a cliff.
Every sector just
about was affected.
I focused on the
value I delivered
and the return on
investment I delivered,
and I focused on
high-end consumers,
and I focused on those who
targeted high-end consumers.
I also focused on
big-ticket consulting,
and you know what?
Those two sectors carried
me through very nicely.
I thrived during
the worst recession
since The Great Depression.
So, I want you focused
on those areas, as well.
That's your first tip on how
to get through a recession.
Focus on the high-end in both
B2B and business to consumer.
The second tip is look
for industry diversity
in your client mix.
Right now today, I want you
to look at your client mix,
and if you have more
than 10% of your business
in any one industry sector,
I want you to diversify.
You should have a minimum of
10 different industry sectors
that your business comes from.
So, if you focus on
attracting business
from people in real estate,
you should also focus
on attracting business
from people in oil
and gas, other energy.
Focus on attracting business
from pharmaceutical companies.
Focus on attracting business
from other healthcare
sector companies.
Focus on attracting business
from aviation companies.
I don't want any more than 10%
of your business coming from
any one industry sector,
because that diversity
will be your hedge
against the recession.
And you can pivot
quickly to the sectors
within which there is growth.
Establish at minimum,
at least 10 different industry
sectors in your business.
You will come through
a recession just fine.
The third element of your
recession survival guide,
the way to grow your sales
during a recession is
geographic diversity.
Recessions do not hit
every geography equally.
You need to have clients
across all geographic sectors,
North, South, East, West,
domestic and international
in order to survive a recession.
You'll find that the
recession strikes like a wave
and it moves from one
geography to the next,
but some geographies are
hit harder than others.
So, source your clients
outside of your local market.
If you're a local business,
let's say you're a dry cleaner
or you're a bakery, figure out
a way to do business online
and sell things to people in
other parts of the country.
You need to insulate yourself
from locally deep
recessionary pockets.
You may be hit hard, because
let's say you live in Michigan,
and the auto market
falls off a cliff,
like it did in 2009, 2010.
People are going
to be out of work.
You own a bakery.
Folks are not going to
be buying bagels from you
during a recession.
They're going to
buying their toast
at the local grocery store,
and they're going to
make their toast at home.
What you need to
be able to do is,
you need to be able to
sell products online
that people will buy from
all over the country,
if not all over the world.
So focusing your business on
an online presence is critical
right now and all the way
through the recession,
so that you have
geographic diversity,
and that will carry you through.
So, these three areas
are the three areas
that will carry you through.
Focus on high end, whether
it's consumer or B2B.
Focus on industry diversity.
Work across all different
industry sectors,
and focus on
geographic diversity.
That's how you survive
and thrive in a recession
and keep your sales growing.
Keep your revenue
on the increase,
even though you're in a
difficult recessionary time.
This is going to be
a very difficult time
for everyone, but you
will be the person
who everyone looks to, who
grows and outpaces your industry
and everyone in your geography
during the difficult
time of the recession.
Don't wait, act on
these tips right now,
and you will grow accordingly.
If you're stuck and you're
wondering how to diversify,
or you want to prepare
more thoroughly,
I'm the person you should call.
Reach out to me.
My telephone number's
888-444-5150,
888-444-5150.
I helped thousands of
people survive and thrive
through the last recession,
and I want to do
the same for you.
I'm Dave Lorenzo,
and until tomorrow,
I hope you do this
and sell more.
We'll see you right
back here tomorrow
on The Dave Lorenzo Daily.
(upbeat electronic music)
