A failing economy certainlypresents challenges to any small business. It could also provide opportunitywhen competitors are forced to shut down because of tough times, leaving intheir wake customers that your business can bring into the fold.

If a competitor closes itsdoors, consider the following tips to bolster your customer base and yourbusiness:

1. Honor gift cards andcoupons of competitors. When businesses fail, customers who have gift cards forthat business’ merchandise often lose their money. If a competitor goes under,make a point of letting its customers know that you’ll honor any gift cards andcoupons. In the short run it will cost you, but you may be gaining a long-termcustomer.

2. Buy competitors’ customerlists. When businesses file for bankruptcy, they liquidate their assets so theycan pay off as many debts as possible. A competitor’s customer list can provideyou with a priceless marketing vehicle since you would have access to peoplewho have already proven to be interested in your products or services. Approachcompetitors as soon as you know they’re going out of business to see if you canstrike a deal.

3. Make a direct appeal. Ifyou can gain access to a closing business’ customer base, talk to thosecustomers directly, telling them that your business is ready to serve them.While a direct mailer could be an effective way to do this if you have actualcustomer addresses, don’t rule out the display of posters or fliers in thegeneral vicinity of where those specific customers are likely to see them.

4. Ask competitors to referyou. If a competitor that’s closing its doors isn’t planning to open anothersimilar business, your business is no longer a threat. Talk to the owner aboutsending customers your way.

5. Consider offering newservices. Are there products and services that a competitor offered itscustomers that may appeal to your client base? Consider offering such services,giving a competitor’s customers more of a reason to check your business out.

6. Ramp up advertising.Loyal customers of the failing business have a void to fill and your businessmay be the beneficiary, but those customers have to know you exist. Use theopportunity to launch a new marketing blitz, introducing those customers toyour products and services.

7. Consider hiring. Considerrecruiting staff from your failed competitor, as they will not only offer experienceto your business, but may bring with them loyal customers, as well.

– Source: Tire ReviewBusiness Toolbox