Brace for Inevitable Ups and Downs
Savvy business owners look for opportunities during tough times
Drops in sales can feel like emergencies, but they are often a signal — one that, if interpreted correctly, can lead to stronger, more resilient growth.
Whether the slump is due to shifting customer preferences, increased competition or internal inefficiencies, understanding why the decline is happening is the first step toward recovery.
According to HubSpot’s 2024 Sales Trends Report, 58 percent of sales professionals cited changes in buyer behavior and unclear value propositions as leading causes of revenue declines. Businesses need to quickly identify the root cause of a downturn and respond effectively.
Startups Reach Success Whenever They Master Growth and Sales
Sales slumps occur to companies of all sizes, but small-business owners will feel a drop off sooner and more acutely. That applies to solo entrepreneurs Tom Reid, Ivana Taylor and Iva Ignjatovic.
“After successfully using word-of-mouth marketing, a change in market and economics forced me to adopt more classic marketing,” Reid said. “The reason for the sales slump — apart from economics — was that I suck at marketing.”
That is not unexpected for someone not a marketer by trade. Reid is a leadership and contracting expert, having written “Sustained Leader WBS,” a comprehensive tool for assessing and improving leadership potential.
He has decomposed every part of the work to be done in a project — 229 WBS elements that apply to building yourself into a sustained leader.
Everyone is Vulnerable
In a sense, leadership is related to sales, but not down to mastering arcane market mechanisms. That is where Taylor and Ignjatovic step in to lend their expertise. Yet, they also are not immune to selling slumps.
Sales can decline because consumers are persnickety, wanting something new and different — and cheaper. Businesses have to change and keep up.
“Market shifts happen,” Taylor said. “If you’re not watching trends, you might miss a key shift. With the cost of necessities going up, a lot of purchases might be put off.”
She owns DIYMarketers, “committed to helping small-business owners get out of overwhelm.”
Business Owners Try New Tactics to Reach Their Sales Targets
According to SimpleTexting, which specializes in the easiest way to text customers, 57 percent of small businesses with an excellent online presence say their marketing efforts have a very significant impact on sales.
“Sometimes sales slumps are seasonal,” said Ignjatovic, a marketing, strategy and business consultant. “Every business has ups and downs.”
That is complicated when customers demand high quality at no cost — for them.
“I have no issues with anything except when clients expect superb work, products or service and to pay almost nothing,” Ignjatovic said.
“Things are very very different from 10, 15 or even five years ago,” she said. “Sometimes it’s not that business owners suck at marketing. They can’t keep up or can’t compete with big companies.”
Avoid Piling On
To quickly diagnose what causes a drop in sales, businesses regularly need to research consumer interests, walking the line of not inflicting yet another survey or feedback request on them.
“We also need to intuit what isn’t said,” Taylor said. “We consumers say one thing but do something completely different. Dig into the data — review website traffic, conversion rates and customer feedback.”
That is one of the special qualities that make businesses stand out. Personal, caring service gives small companies power beyond their size.
“Talk to your customers,” Ignjatovic said. “Their insights can be gold.”
Special Qualities Make Businesses Stand Out
Do not blow off declining sales as just a trend. Look at consumers as well as inwardly, preferably through the lens of a third party.
“Don’t panic,” Taylor said. “Start by identifying the root cause.”
According to Constant Contact, which specializes in tools to simplify and amplify digital marketing, the percentage of small to medium-sized businesses that attribute at least 50 percent of annual sales to the holiday period has nearly doubled since 2023.
“In a way, it’s a trend,” Ignjatovic said. “People will save throughout the year to spend during holidays. Reconnect with past customers and reignite relationships.
“There is theory and reality,” she said. “It’s normal to feel anxious while looking for options and other solutions.”
Market From Strength
Boost sales during a slump by promoting products strategically and in moderation. Do not give the impression that the company’s entire stock was overpriced in the first place.
“It’s a vicious cycle to say we know everything is overpriced,” Taylor said. “A lot of small businesses really try to keep price increases at a minimum. Double down on content marketing — educate, engage and attract leads.”
In addition, cross-selling and up-selling give small businesses untapped power.
“Partner with complementary businesses for cross-promotions,” Ignjatovic said.
Long-term changes help businesses prevent future sales slumps. Set changes months or a year in advance to avoid haphazard approaches.
“Diversify your income streams,” Taylor said. “Don’t rely on one product or service.”
Customer Experience Tops Out With the Help of Digital Data
Likewise, cultivate a diverse consumer base.
“Invest in customer retention strategies,” Ignjatovic said. “Loyal customers keep you afloat.”
Consumers will support businesses if they see a genuine, caring response.
“Community takes time, but it’s worth it,” Ignjatovic said. “This is one of the best long-term strategies.”
Meanwhile, always keep a pipeline open for new businesses to reach out to.
“Sales and marketing need to be happening all the time,” Taylor said.
Past success does not guarantee future results. This is why small-business owners should be open to new possibilities when they come along.
“Broaden the product and services base,” Reid said. “Include offerings for all ‘seasons’ of your market’s business cycle.”