(Part 2 in a series) 
In the adrenaline-pumping world of skydiving, we know that the best time to plan for an emergency isn’t as you’re hurtling towards the earth at 120 MPH—it’s long before you ever climb aboard the plane. The same principle holds true in the high-stakes realm of flooring. With that in mind, let’s walk through the “Emergency Procedures” every flooring retailer should have in place.
Sharpen your cost-cutting saw. When the economic sky seems to be falling, your ability to swiftly and effectively reduce costs can be the difference between a controlled descent and a nosedive. Go through your books and scrutinize every expense. Ask yourself, “Do I really need this thing I’m paying for?” Determine which costs are essential for operations and which are not. Negotiate with suppliers, consider more cost-effective marketing channels and embrace technology that can streamline your operations.
Multiply your revenue streams. Relying on a single source of revenue is like skydiving without a reserve parachute. Develop multiple revenue streams to ensure if one area of business experiences a malfunction, you have others to keep you afloat. This could mean expanding into new markets, adding additional products—such as window treatments or countertops—or offering additional services like restoration or cleaning.
Cross train. In times of turbulence, a well-trained, versatile team can be invaluable—especially if you experience some turnover. Cross-train your staff to perform multiple roles, which not only creates redundancy but also enhances teamwork.
Get those cash reserves. Building up a cash reserve when the economy is robust provides the lift you’ll need to stay afloat during an economic downturn. It ensures that you’ll be able to keep paying your bills, retain your staff and survive until the crisis is over.
Maintain strong customer connections. When you’re busy with more work than you can handle, it’s easy to take customer relationships for granted. But in a downturn, these relationships are your lifelines. Putting relationship-building strategies in place will help you weather the storm.
Create differentiation. Every prospect has an unspoken question on their mind: “Why should I buy from you vs. every competitive option available to me—including doing nothing?” The dealer who answers this most effectively wins, especially when the market nosedives. Begin putting differentiation strategies in place when skies are calm but keep innovating when you hit turbulence.
Master your mindset. Lastly, the most crucial step is to condition your mindset for crisis management. Panic can lead to paralysis. Instead of taking quick, decisive action when the economy is in freefall, I’ve seen dealers simply do nothing and hope they remain afloat until the turbulence ends. Having your “emergency procedures” written down will help create a mindset of confident action.
Jim is the founder and president of Flooring Success Systems, a company that provides floor dealers with marketing services and coaching to help them attract quality customers, close more sales, get higher margins and work the hours they choose. For information, visit FlooringSuccessSystems.com.
