When Business Is Slow, Adopt Reverse Operation

When business gets tough, most people tend to follow the crowd by cutting prices, expanding product categories, and vying for traffic. However, the more they hustle, the more they lose. In fact, when the market hits rock bottom, it's time to take a different approach - 'Reverse operation' doesn't mean going against the odds recklessly. Instead, it involves discarding ineffective actions and focusing on core values. Using the logic of'reducing the front line, enhancing quality, and deep - diving into existing customers' can help break the deadlock. The colder the business climate, the more necessary it is to gain confidence through reverse operations.

The First Action: Reverse Operation - To Cut Product Categories, Do Not Expand

When business is poor, some people think they can boost revenue by selling more products. But this often leads to more inventory and difficult cash flow. Take the noodle shop owner in a neighbourhood. During a tough period, he cut half of the snacks and drinks, keeping only 3 signature noodle dishes and 2 side dishes. By minimising ingredient procurement costs and perfecting the cooking techniques, he won back the loyalty of regular customers, and the net profit was even higher than before. The core logic is that in a bad market, customers prefer 'core products with high certainty'. Rather than facing an all - around defeat, it's better to concentrate resources on one product and use it to support the revenue base. The method is straightforward: conduct an inventory of all categories and eliminate those with less than 5% of sales and less than 10% of profit margins. Focus on the main products that can meet customers' core needs.

The Second Action: Slashing Competition - To Increase Value, Do Not Engage in Price

When everyone is cutting prices to win orders, following suit will only lead to a vicious cycle of thinner profits and poorer service. A friend in the business of corporate consulting didn't lower prices during the off - season. Instead, he extended the service period from one month to two and added three additional on - site guidance sessions. As a result, the average customer price increased by 20%. He said that in a bad market, customers are more worried about getting no results for their money than about high prices. By providing sufficient value to make customers feel they are getting more than they pay for, you can attract more stable customers than by offering low prices. The implementation tip is to not compromise on price but to add value in terms of service, quality, and guarantees, such as adding product warranties, after-sales services, and additional value for delivery. Use value, not price, to anchor customers.

The Third Action: You Do Not Need So Much Staff - To Strengthen Internal Capabilities, Not Recruit Blindly

When business is slow, many bosses lay off staff to cut costs, but they forget that 'key talents are the foundation for recovery'. An e - commerce boss didn't lay off core operators and customer service staff during the off - season. Instead, he organised weekly skill training programs to improve product - selection skills, optimise communication scripts, and enhance after-sales response speed. He also streamlined and optimised inefficient processes. When the market recovered, his team could quickly handle orders and gain a head start over competitors. The core logic is that the off - season is the best time to strengthen internal capabilities. The cost is low, and there is plenty of time. By improving team capabilities and process efficiency, you can better meet market demands when the situation improves.

The Fourth Action: Old Better than New - Focus on Existing Customers, Not Just Pursue New Ones

In a tough market, it's easier and more cost - effective to retain existing customers. A beauty salon owner increased customer retention rates by offering exclusive membership discounts, personalised beauty plans, and small gifts during the off - season. By focusing on the needs of existing customers and providing high - quality services, she turned them into loyal advocates. The core logic is that existing customers already know and trust your brand. By providing them with a better experience, you can get more repeat business and word - of - mouth referrals.

The Fifth Action: Cash Is the King - To Stabilise Cash Flow, Not Stockpile Blindly

Many bosses think that stockpiling can save costs, but during a bad market, large - scale inventory often leads to product overstock and a broken cash flow. A friend in the snack wholesale business adhered to the principle of 'small - batch, high - frequency' restocking during the off - season. He reduced the inventory turnover days from 30 to 15 and negotiated longer payment terms with suppliers, extending the payment cycle from one month to two. He said that in a bad market, cash is more valuable than inventory. Having enough cash on hand gives you peace of mind. The method is to set an inventory limit, clear out products that have been unsold for over a month without hesitation, and renegotiate payment terms with suppliers and customers to optimise the cash - flow structure and ensure stable monthly revenue.

The Sixth Action: Cooperation - To Collaborate With Peers, Do Not Fight Alone

In a tough market, cut-throat competition will only lead to a lose - lose situation. By working together, businesses can weather the storm. Several local service providers joined forces during the off - season. A housekeeping company and an appliance repair shop recommended customers to each other and shared advertising channels. A restaurant and a fruit store cooperated to launch a 'package + gift' promotion, jointly reducing customer acquisition costs. As a result, all of them increased their revenues by more than 20% compared to when they operated independently. The core logic is that peers are not enemies but complementary resources. By sharing resources and sharing costs during a bad market, you can significantly reduce operational risks. The method is to find 2 - 3 reliable peers, identify complementary areas, and establish win - win cooperation rules, such as customer sharing, channel building, and cost - sharing, to grow the market together.

When business is bad, the last thing you should do is panic. Panicking into cutting prices, expanding product lines, and aggressively seeking new customers will only lead to more chaos. The essence of reverse operation is to 'abandon illusions and return to the essence'. Abandon ineffective expansion and cut-throat competition, and focus on the core aspects of products, customers, and the team, making every step solid. Many people think that reverse operation is 'going against the trend', but in fact, it is in line with the trend. When the market is bad, the core market demand changes from 'quantity and variety' to 'quality and refinement' and from 'low price' to'reliability'. The reverse operation precisely adapts to these demand changes. Business owners who calmly carry out reverse operations during the off - season can often quickly capture the market and achieve a rebound when the market recovers.

The core logic of reverse operation is simple: reduce the front line and focus on the core, increase value instead of cutting prices, deepen relationships with existing customers instead of just chasing new ones, strengthen internal capabilities and wait for the right opportunity, and collaborate with peers to get through difficult times. The worse the business, the more you need to stay calm, not follow the crowd blindly, and spend every penny and every bit of energy on the most important things. The market has its cycles, and business has its ups and downs. The off - season is not for anxiety but for accumulation. By using the logic of reverse operation to stabilise the foundation, you can soar higher and go further when the opportunity arises. The winners in business are often those who know how to 'accumulate strength in reverse' during the trough.