It's All in How You Look at It - Being Opptomistic About the Present Economy.

If you have been reading my opinions on the economy for the last 6 months, you will know that I believe that we are in for a long slow down. Does this mean that it's time to shut the doors? NO NO and NO. It means that you have to be smart in order to stay in business and make money. This is when the cream of the crop will rise and those who do shoddy work will loose money.

Jeffery Gitomer is a sales Guru - if you haven't read his books, start. He has a very interesting website filled with tips and advice on selling your product or service to the marketplace. Before you say, I'm not a salesperson..... if you are a business owner, you are a salesperson. You sell your products, services and yourself to the marketplace everyday in order to grow and make money.

Anyway, the point I am trying to make is his take on the doom and gloom being hyped by the media, after all if it bleeds it leads. As I read his words, it brought home positive thinking and finding the silver liner to survive this downturn.

For example, when you hear the negative statistic on the news that home sales are down 33%, it actually means that FIVE MILLION homes will be sold this year. The only unanswered question is: Who will get that business? The media portrays gloom when actually there's still PLENTY of opportunity - just not as much as before

To read his full article on surviving the downturn in the market and being better at getting customers, check out his website: www.gitomer.com

Lots of companies prospered and some great big brand names started during times of recession and even during the Great Depression. Don't Believe ME?

To begin, not all was doom and gloom during the Great Depression. It was a time when those who knew what they were doing made great economic strides, and the very nature of the Depression was an economic boon for them. It was a time when several companies benefited from aggressive marketing while their rivals cut back. A good example of that would be Kellogg besting C.W. Post during that time. Consumers didn't stop spending during the Depression; most just looked for better deals, and the companies providing those better deals came out stronger after the Depression ended. When spending picked up, consumer loyalty to those companies remained.

Generally speaking, those companies that not only survived but also thrived during the Great Depression were those that continued to act as though there were nothing wrong and that the public had money to spend. In other words, they advertised. These are industries that didn't wait for public demand for their products to rise. They created that demand even during the most difficult of times.

What mattered is making a plan, being smart and NOT cutting back on the items that provide your customers more information about you, your service, your business, and your story. Keep advertising, just be smart about where you put your advertising dollars. Keep networking, just be smart about which luncheons you will pay a fee to attend. Keep contacting customers and the marketplace via blogs, websites, and newsletters along with writing articles for periodicals.

Your business can survive an economic down turn, whether it is a recession or heaven forbid a depression. You may not see as much cash flow as you did in the past, but you will see enough if you work hard and smart to attract customers to your business. By not advertising you are telling the marketplace that you can't afford to advertise, you are probably going to be out of business soon. Remember: Out of Sight - Out of Mind.

How do Customers Find Your Business? Really I Want to Know How You Attract Customers!

If you are not advertising or marketing your business how are customers finding you? Some small business people I talk to tell me they do not need to advertise or market their business because they are a one person business. If this is the case how do customers find out about their services or their products?

As a small business owner how do you find customers?

Can Your Business Survive a Recession? Work Smarter, Harder and Leaner

Back in June when I wrote that I thought many industries were already in recession and the US economy as a whole was on its way to a recession many were in disagreement. With the stock markets taking a hit and banks going into receivership I think we are already way beyond recession and now heading for a larger economic downturn then most would say. I don't even want to use the word depression but when you look at the historic reasons for the depression you can't help but see parallels. Banks going under, stock market values falling, people loosing their homes and jobs.

The big difference is the governments willingness to inject cash into the market sooner rather than later which will hopefully keep things from getting worse. The economy was being supported by borrowed money for so long it shouldn't be a surprise that it ran out.

As a business owner what can you do to survive this economic downturn?

Simple answer be smart about credit and spending. Longer answer:

1. Don't plan to expand in the next year, if your business plan called for expansion right now, revamp it and create a maintenance plan for the next 2 years at least.

2. Don't borrow right now. Get your inventory levels under control with systems that enable you to have more just in time deliveries and less overhead. Figure out a system that will enable you to turn over inventory more efficiently and cost effective. If possible negotiate longer payment terms then you currently have with suppliers.

3. Bring in more "must have" items, by this I mean necessity consumable items that people have to buy that are similar to what you offer consumers now. Keep luxury items at a minimum.

4. Advertise, but don't be stupid about it. You still need to get your story out into the market place and let people know that you are still in business. If you stop advertising your present customers may think you are no longer in business or worse, that you are going out of business. Advertising is an investment not a cost. Make sure you advertise where your customers see you and in the most affordable manner.

If you have a full colour ad in Yellow Pages you may want to cut back to a black and white ad that is the same size or look to their competition for more affordable advertising: Canpages being their number one national competitor.

Look at going to community newsletters for affordable advertising rather than the big ads in the newspaper. Community newsletters are relevant to their readers, are delivered to consumers homes, and is much more affordable then newspapers.

Instead of independent direct mail fliers that get thrown into the round file, advertise with direct mail catalogs like UPTOWN which provide recipients with articles and relevant information. These magazine's will stay in a home longer than your independent flier and cost you a lot less.

Know where your customers hear about you and find your contact information and then focus on those areas of advertising first.

5. Network, Network, Network....... Attend as many networking functions as you can without breaking the bank because this is affordable word of mouth advertising at its best. Don't go in expecting to make a sale right then or to sell everyone on your business. Go with the expectation of meeting new people and finding new services and business that you want to use.

Have a good 30 second commercial that will spark interest in your business and how you can help their business or personal lives. Don't go in spouting how great your product is and then leave and never return, networking takes an investment of time and interpersonal skills.

6. Merge your resources with another business. Cooperative marketing or cooperative advertising will help both businesses cut costs but at the same time provide both with exposure to the marketplace. Partner with a business that is a complement to yours and not your competitor. Put a plan in place together and write out the responsibilities and expenses of both parties. This will act as a contract for both of you to understand expectations and responsibilities.

7. Hire Professional Advisers. Professional advisers can help you look at the problems you face in a different creative way to ensure that you will come out ahead in the long run. Ask people who they use, google them, read their blogs or articles, and contact them to make an appointment to discuss your business.

Surviving a market downturn, especially one as ugly as this one could be will take planning and commitment on your part. If you continue to run your business in a reactive way instead of proactive you may find yourself in a huge hole that you can't get out of. If you want to be a successful business person, you have to foresee any circumstance and have a plan of action for the long run. By planning, working hard, being smart, and understanding your customer base you will come out of any recession ahead of the game.

Other entries on this topic:

Is the US going into a Recession?

Should you Cut Back on Advertising During a Recession?

Advertising Can People Find Your Business?

Consumers are Spending Less

Economy Slow? Should You Cut Back on Advertising Costs to Compensate?

Things may not be as rosy today as they were a couple of years ago for your business, but should you cut back on your advertising budget to cut down on the overhead? At first it may be tempting to cut your advertising budget when your cash flow is lower, however this could be the first step in a downward spiral.

The only purpose of advertising is to bring your message to the marketplace to entice them to use your product or service. If you stop advertising how is the marketplace going to know your story?

Advertising during a sluggish economy clearly creates a competitive advantage, according to the study, with a majority of executives agreeing that seeing a company advertise during slower times makes them feel more positive about the company’s commitment to its products and services. But perhaps most important is staying at the top of buyers’ minds when purchase decisions are made.

What business people need to do during a weaker economy is to get lean and use advertising intelligently. By tracking where your customers hear about you AND find your contact information you can plan a lean quality advertising campaign.

Where would you go to find businesses or services you need?
Where would you go to find out who your competition is?
When would the marketplace need your product or service?
Where would your potential prospect be when they looked for your product or service?

There are lots of affordable methods of advertising, both in creative and directional mediums.

Is your marketplace in a certain area of your city? Check out local community newsletters and their rates. This medium is relevant to those that receive it and targeted to a geographical target area. In Calgary Flexys provides community newsletters with amazing rates for advertisers.

Phonebooks are distributed to geographical areas and kept in homes, vehicles and businesses for a year for use whenever they need a product or service. In Calgary the Canpages being the 2nd largest phonebook in Canada they provide great rates and good coverage.

Online there are lots of options, both free and affordable. kijiji, craigslist, canpages.ca, and bargain finder.

Regardless of the medium, the Yankelovich/Harris concludes that advertising during all economic times is critical to the future success of companies. The bottom line is clear: If a company is not communicating with customers when they enter the market, then that company will not be considered in the buying decision. That fundamental truth does not change, regardless of the economy.

Business people need to remember that advertising is not a cost but an investment. Unlike their electric bill, their advertising costs will cover it's cost and bring in a profit. If business people want to stay in business they need to change their attitude towards the cost of advertising because without it they cannot grow their business or replace those that leave.

Links:
Do Ads Work?
6 Survival Tips for Lean Times
Advertising Can People Find Your Business?
Is the Cost of Living Effecting Your Business?