Posts Tagged ‘economic downturn’

Is It Possible to Start a Business Right Now?

Thursday, December 25th, 2008

Q: I was recently laid off from my job of 10 years. I don’t really have any savings. Could I start a business somehow given my circumstances? Even if I could do something part-time until I get another job would help. Thank you.

Ellen

A: Of course the conventional wisdom is that this is a bad time to start a business, and one thing I know about conventional wisdom is that it is there for a reason; that is, maybe the group knows a thing or two.

No, this is not the greatest time to go into business for yourself, but that said, it can be done if you do it right.

What do I mean by that? One way to succeed right now is to start an inexpensive part-time, home-based business.

No, none of the ideas below are get rich quick plans, but they certainly can help you get some extra dough now, and maybe even more later. Here then are some businesses that can be started without a lot of time or money:

Deliveries / Driver: Especially with the price of gas coming down so much, this might make sense. Businesses of all sorts (in bigger cities especially) need stuff delivered every day. Print up some flyers, charge less, and away you go!

eBay sales: I once had a pal who spent every weekend at garage sales buying old motorcycle parts which he then sold during the week on eBay. He made several thousand dollars a month. His motto? It’s all in the buying. Think of something you know well, hunt it out, and resell it on eBay. Buy low, sell high.

Residential and commercial cleaning: Housecleaning is a tried and true home-based business, and it can lead to more lucrative commercial contracts. The cost to get into this sort of business is almost zero.

Transcription: Doctors and lawyers especially contract out transcription services.

Window washing / pool cleaning / snow removal, etc: Simple service businesses like these can be started with very little time and money and require nothing but some elbow grease. Again, especially in this economy, the secret is to undercut the competition in terms of price.

Pet-sitting and house-sitting: No, you won’t make a ton of money, but these sorts of businesses can be a nice source of extra income.

Hauling: With a truck and a classified ad, you can have a business removing junk for people.

Independent sales representative / manufacturer’s rep: Thousands of companies hire independent contractors to get their products into store and handle their product lines. This job would likely take you on the road for long stretches. Consider handling the products of several different companies.

Gardener: If you have a green thumb this might be the right business for you, but of course it tends to be seasonal work with most of it coming in the spring and summer, along with some leaf cleanup in the fall.

Childcare: Of course this is a business that requires extra responsibility and due care, but it can also be very rewarding and can be started with little money.

This list, of course, is really just a sample to get you thinking. If you have a specialized skill, such as automotive repair or being bilingual, you could parlay those as well into a shoestring startup. The important thing is that you open your eyes to the possibilities.

Today’s Tip: If you own a tech business and are thinking about expanding internationally, you should know about a contest that can help you. Called the Technium Challenge, the contest gives to the winner from the U.S., along with finalists from 12 other nations, a business-class flight to Wales for a week-long “Learning Journey” that will include one-on-one sessions with British legal, business and skills experts.

The overall winner will receive one year of free office space within one of 10 Technium incubators in Wales and ongoing counsel on financing, business planning and technical issues. You can learn more here.

Need a speaker for your next event? Contact Steve ! He is one of the world’s leading business experts, a popular speaker on the business lecture circuit, and is sure to leave any audience thrilled. A columnist for USA TODAY, lawyer and author, his latest book is the best-selling Small Business Bible : Everything You Need to Know to Succeed in Your Small Business . You can sign up today for his free newsletter , “Small Business Success Secrets!” at his web site - www.MrAllBiz.com .

Tags: advice, economic downturn, economy, start up, Starting a Business, Steve Strauss, tips
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Small Businesses Still Hired in November

Friday, December 5th, 2008

Even in the current economic environment, a recent survey found that small businesses are faring better than they may think.

Small businesses increased their staff levels by 0.26 percent last month and 3.3 percent for the year so far, according to payroll administrator SurePayroll.

“We are big believers in small business resiliency but even we were a little surprised to see that U.S. small businesses managed to hire new employees in November,” said Michael Alter, SurePayroll president, in a statement.

SurePayroll polled more than 20,000 small businesses, finding that they hired more while also paying less for salaries. The average paycheck fell nationwide by 0.39 percent, and has fallen by 2.6 percent so far this year.

“We had anticipated a slowdown in salary declines, but higher employment clearly is allowing employers to hire talent for less money,” Alter said.

When SurePayroll asked a smaller sample how the economic downturn affected them, about 43 percent of them said that business has not been affected negatively. In addition, 4 percent of them even said they were doing better.

More than half of those businesses said they now feel optimistic about the economy, though other businesses surveyed in different studies revealed a growing pessimism.

In a Discover Financial Services survey conducted last month, about 65 percent of small businesses rated the economy as ‘poor.’ A third of the polled business-to-business owners also said they had cash flow issues in the preceding 90 days.

In addition, the National Federation of Independent Business found that positive outlooks from small business owners in August and September led to “recession level” feelings in October.

“October … would seem to be the proverbial ‘nail.’ Case closed. Tough times ahead,” the economic report stated.

Meanwhile, Alter had also considered news of a developing recession that month.

“It would be truly remarkable if small businesses could still manage to grow on average,” Alter said in SurePayroll’s October report. However, he had also likened small businesses to Rocky Balboa: “beat them to a pulp and they will keeping fighting.”

Tags: christina lee, Discover Financial Services, economic downturn, employment, National Federation of Independent Business, small business, SurePayroll
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Save the Date: NAW’s 2009 Executive Summit

Thursday, November 20th, 2008

As the economic slowdown creates all-time lows, business owners fear that the upcoming fiscal year may become a recurring nightmare. But what one association wants to prove is that wholesaler-distributors can fare well at any time, even under the direst of conditions.

The National Association of Wholesaler-Distributors’ upcoming executive summit – subtitled “Profiting Despite the Difficult Economy” – will present expert opinions regarding business relationships and optimization of sales and marketing during tough times. Alan Beaulieu, Institute for Trend Research president, will also present an economic forecast and list of recommended actions for 2009.

“The program is determined by what our members tell us they’d like to hear about and learn about,” said Joy Goldman, summit coordinator and director of administration.

Also lined up for the summit are David Nour (The Nour Group), David Griffith (Modern Group Ltd.), F. Barry Lawrence (Texas A&M University), and Bruce Roby (Wilson).

The executive summit – at Fairmont Washington in the District, Jan. 27-29 – costs $1,075-$1,645 before Jan. 2; and $1,180-$1,745 after. For more information, call 202-872-0885 or visit www.naw.org .

Tags: christina lee, economic downturn, Executive Summit, Joy Goldman, National Association of Wholesaler-Distributors
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Wholesale-Distribution and the Economic Crisis

Saturday, October 11th, 2008

Each day this week, Wall Street investors watched in astonishment as the Dow Jones Industrial Average plummeted at unprecedented rates. Very few, if any segments in the wholesale-distribution industry are safe, experts say — but every day that passes is an opportunity to optimize the market.

“What it comes down to is making the best strategic decision, under any circumstances,” said Chuck Miller, vice-president of marketing communications firm CommCentric Solutions, “and when you have fast-changing conditions that occur with the challenges of today, you have to be able to respond quickly and appropriately.”

The most recommended solution in times like these: collaboration that pushes down barriers of competition. That competition, according to Richard Sherman, refers to manufacturers and retailers, “not necessarily other wholesalers down the street.”

But while initiating these new relationships, wholesale-distributors of all sorts must make sure that they add value to their services and make that value known — starting now.

“They need to wake up,” said Sherman, president of Gold and Domas Research and supply chain management expert. “In fact, I happen to be working with some wholesaler segments — and I won’t say which ones — that don’t need a wake-up call. They need a wake-up two-by-four.”

The Market’s Current State

According to research by the Manufacturers Alliance , manufacturing production growth is expected to decline by 0.5 percent in 2008, following a low 1.7 percent growth last year. Its research institute does expect growth in 2009, but only by 0.2 percent.

The only growth expected this year is in investment in equipment and software — by 0.8 percent in 2008 and 2.3 percent in 2009. In addition, the research institute predicts that the largest percentage gain in capital equipment spending will go toward the high-tech sectors.

“Distributors in the IT industry have an advantage in such circumstances. In tougher times, everyone wants to cut costs and find ways to be more efficient,” Miller said.

But, as the former communications director of Tech Data Corporation — one of the world’s largest technology product distributors — can attest, the advantage that the industry has is no guarantee.

“It is very difficult to see how everything will unfold,” he said. “It is contingent on the actions of the Fed, and how that overall affects the business climate. That obviously affects IT spending and how much stability or how much decline may occur.”

Ben Worthen, a Wall Street Journal blogger, also announced to readers Tuesday that “The Tech Sector Finally Gets Hit.” His entry discussed the loss in revenue by SAP and RightNow Technologies — proof, he says, that “tech companies may have cash, but their customers aren’t so lucky.”

Wholesale-distribution experts expect very little, if any segments of the industry to remain intact.

“The wholesale-distribution industry as a whole is going to be impacted in a very general way as is the economy — which is pretty devastating,” said Jim Olsztynski, editor of plumbing distribution magazine Supply House Times. “We all see what is happening to the stock market, and everything else that is going on. I think we’d be whistling in the dark if you think the wholesale industry is going to prosper.”

Past Sufferings

Wall Street only presents the latest of obstacles the wholesale-distribution industry has had in over the past ten years. More than 20 years ago, manufacturers and retailers began making efforts to distribute goods themselves — a process that cut out wholesale-distributors and, as they thought at the time, reduced both costs and risks.

Beginning in 2000, layoffs in the technology distribution industry came as a result from, as Miller described, “a combination of the dot-com explosion and large-scale build-up for the Y2K conversion.” Dell became renowned for its direct-model approach — the manufacturer’s unique way of adverting the industry’s downturn.

In the end, manufacturers and retailers did not reduce either cost or risk by much, according to Sherman. Still, they saw wholesale-distributors as little more than “middlemen” that had to prove themselves worthy again

“Mr. Wholesaler, you have to begin to articulate the value of those services and value of inventory management, and buffering risk against uncertainty in the last mile of that distribution,” he said, to sum up his advice given in a 2001 Material Handling Management article, “Wholesale Distribution — Back in the Chain Game.”

Part of this redefinition, as wholesaler-distributors found, became the creation of a new relationship with manufacturers and retailers. They began providing extra packaging lines so that they could send out personalized case sizes of material — thus, reducing costs manufacturers had to pay for packaging material, labor, and equipment.

How Crisis Becomes an Opportunity

A reexamination of history — in particular, when distributors were being overlooked ten years ago — could lend solutions for today’s crisis. More than ever, wholesale-distributors need to learn fast how to deal with an increased crunch in and competition for cash flow, credit and capital.

With this, “the bigger businesses are going to get bigger, the smaller businesses are going to get smarter, and the medium-sized businesses got to really look at their strategic intent,” as Sherman said.

One of the first steps wholesale-distributors must take is to evaluate their inventories.

“A lot of capital gets tied up in those inventories,” Sherman said. “Managing inventory in light of tight credit is an opportunity to free up working capital.”

In addition, as they had to do ten years ago, wholesale-distributors must again add value to their services and collaborate with manufacturers and retailers. Experts advise that distributors offer to take care of supplying to regional retailers or to other small to mid-sized clients, so that manufacturers can focus more on their national buyers.

“It’s the wholesaler that has to educate their former supplier or other suppliers of the capabilities they bring to the table,” Sherman said.

As he has already seen in the technology distribution industry, Miller says that reimplementation of two-tiered business — and with that, “solution selling” — in other industries will soon prove to be more cost-effective.

“The solutions that are used by all businesses, large and small, are comprised of multiple products. The single vendor providing direct sales doesn’t have that solution that the all-products-in-one-place has,” he said. “This is a very significant plus that has always been there for distributors and is even more pronounced during tough times.”

Regardless of what steps distributors decide to take, experts agree as well that the current financial situation will surely lend lessons of its own.

“A lot of people don’t realize how interconnected business really is,” Sherman said. “For those people who don’t think that their business is in an ecosystem, and that a little bump here could cause a big bump somewhere else: this should be a real education opportunity.”

Tags: christina lee, Chuck Miller, CommCentric Solutions, economic crisis, economic downturn, Gold and Domas Research, Jim Olsztynski, manufacturers, retailers, Richard Sherman, Supply House Times, wholesale distribution
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The State of Small Business

Tuesday, September 2nd, 2008

Q: Steve, what is your take on the state of small business right now? And if small businesses are having as much of a hard time as it seems, what are they doing to break out of the doldrums?

Rick

A: If I had to choose one word to describe small business right now, it would be unease . If I had more words, they would be nervous, retrenched, and cautiously hopeful (alas, we are usually hopeful, even when there is little reason to be.)

Although my pessimistic perspective is inherently subjective, even objective measures point to the same conclusion.

• The NFIB May, 2008 Small Business Economic Trends Report shows that small business optimism to be at its lowest level since the 1979 oil embargo.
• Warrilow and Co., a savvy surveyor of the small business marketplace, found that only about 40% of small business owners were optimistic about their own sales, and far fewer were optimistic about the economy generally (27.5%)

The problem small businesses have is that, very often, we are at the mercy of much larger business and grander economic forces. There is little you can do if, for instance, a big corporation with whom you do business decides to terminate your services in effort to cut back.

Starbucks can close 600 stores and save a wad of cash when things go south, but all we can do is to try to somehow wring out a tad more savings by tightening the belt and to keep hustling for business.

No, it is not my style to sound so dire, but these are indeed tough times for small business. The good news is that there options. As my wife always tells my daughters, “There’s always a solution.”

I recently attended a small business seminar hosted by the aforementioned Warrilow & Co. wherein I listened to a variety of small business owners share their strategies for success in lean times. I came away impressed. Here are a few ideas that you might want to consider:

Look for new clients : If your regular folks are buying less, start looking for customers who can buy more. One owner said, “We leave open the option to pursue business opportunities outside the norm.”

Remember when you first started in business and you used the shotgun approach to customer acquisition, that is, you tried hitting everything, hoping to hit something? That may be needed again. Open your mind as to what is possible, try a bunch of new things, and see what sticks.

Spend money where it will do the most good : Cut back where you can, but consider increasing spending in areas that offer the greatest potential for increasing sales. That may mean more advertising, public relations, business development, buying leads, pay-per-click, or sales training.

Increase your shoestring marketing : There are many ways to get the word out without breaking the bank. All it takes is some creativity and follow-through. One owner at the conference said, “We email and send out postcards more, instead of driving around, meeting potential clients, and giving them brochures.”

Treat existing clients well : A different tact is to take extra special care of those clients who are already your customers.

Add line extensions : Creating additional, related, profit centers means that when one part of your business is down, another will probably be up. A chiropractor added a wellness line that significantly increased revenue in only three months.

Look for government contracts : Even in down times, governments generally, and the federal government specifically, still have contracts that need to be fulfilled by small business vendors. Business Matchmaking is one of many programs that help you do that. A Google search will reveal many more.

No, this is no easy time to be in business for yourself, but with a little ingenuity and some hustle, you can keep things going.

Today’s Tip : One last strategy that I thought was interesting was from one seasoned entrepreneur who looked at slow times as an opportunity to experiment. Whether it was offering a new product or trying out a new advertising campaign, he used down times to refine strategies that can be rolled out in a bigger way during the boom times.

Need a speaker for your next event? Contact Steve ! He is one of the world’s leading business experts, a popular speaker on the business lecture circuit, and is sure to leave any audience thrilled. A columnist for USA TODAY, lawyer and author, his latest book is the best-selling Small Business Bible : Everything You Need to Know to Succeed in Your Small Business . You can sign up today for his free newsletter , "Small Business Success Secrets!" at his web site - www.MrAllBiz.com .

Tags: economic downturn, expert advice, MrAllBiz.com, small business, small business expert, Steve Strauss
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Competing During Economic Downturn

Monday, August 25th, 2008

Q: I own an upper-end shop in New York and we too are being hit by the economic slowdown. With people looking for bargains, how to we compete without hurting our brand?

Jenna

A : There is no doubt everyone is feeling the pinch of the economic downturn these days and woe to the business that doesn’t react in accordance with the times.

Back at the turn of the 20^th century, the automobile was a newfangled contraption. But even so, it was apparent almost immediately that it was also a revolutionary item that was here to stay. That is one reason why, if you Google the term “buggy whip manufacturer,” you end up with zilch.

Why did all of the buggy whip makers go out of business? Because they thought they were in the business of making buggy whips.

Wrong.

Sure, when the automobile supplanted the horse-drawn buggy, the need for buggy whips evaporated, but it wasn’t the car that killed the buggy whip maker, it was the buggy whip maker’s thinking that did it.

Literary essayist George Steiner once put it this way: Had a buggy whip manufacturer in 1910 rethought things and concluded that rather than being in the buggy whip business he was instead in the business of creating ‘transportation starting devices’, he just might have been able to survive the challenge of the new economy and make the transition into a new era.

You gotta go with the times my friends. Unlike our fallen buggy whip business brethren, you must avoid what is known as “marketing myopia.”

Marketing Myopia was an influential business paper written by Theodore Levitt for the Harvard Business Review. The essential idea put forth was that too many businesses think like the old buggy whip makers, with a far too narrow an analysis of what their business is.

The proposition instead was to Think Bigger, to be more expansive, to broaden one’s definition of what business they are in. A broader, more unrestrained criteria offers opportunities that otherwise might have been missed.

Here is a current example: I just read a story that the Whole Foods marketing chain is trying to lure more people into their stores by showing customers that Whole Foods is in fact an economical place to shop. I don’t know about you, but when I think of shopping in Whole Foods “economical” is not one of the adjectives that pops into my mind (and of course that is not all bad, with words like “healthy” and “organic” being more prominent.)

But what people today want, as much as they want healthy, organic, fresh food, is something that does not cost an arm and a leg. The gas pump already has that distinction. So Whole Foods is offering discounts and less expensive brands.

Of course a business like Whole Foods , that has built its business and its brand on matters other than discounts, certainly can’t re-brand themselves as a discount warehouse, nor should they. But it is equally true that neither should they suffer from marketing myopia and conclude that they are a high-end grocer, for good or ill.

Dumb thinking, that.

So all of this is a long story to make an important, succulent point: Go with the flow. If people are looking for discounts, give them some discounts. Listen to your customers. Follow the market. As I am wont to say, if you own a deli and your customers want mustard on the table, put mustard on the tables.

You are not a buggy whip maker, you are not a high-end store owner, you are an entrepreneur, a business person. Your job is to stay in business.

Today’s Tip : Remember to ask for help when trying to figure out which way to go. John Wooden, the legendary basketball coach from my alma mater UCLA puts it this way:

“When I had assistants, I always wanted them never to be afraid to make a suggestion. We don’t know a thing we don’t learn from somebody else in one way or another. If you do agree with their suggestion and use it and it works, be sure that they are the one that gets the credit, not you.”

Need a speaker for your next event? Contact Steve ! He is one of the world’s leading business experts, a popular speaker on the business lecture circuit, and is sure to leave any audience thrilled. A columnist for USA TODAY, lawyer and author, his latest book is the best-selling Small Business Bible : Everything You Need to Know to Succeed in Your Small Business . You can sign up today for his free newsletter , “Small Business Success Secrets!” at his web site - www.MrAllBiz.com .

Tags: competing with other businesses, economic downturn, economy, expert advice, MrAllBiz.com, small business expert, Steve Strauss, tips
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Helping Customers Weather Recession

Friday, May 23rd, 2008

The following is a great excerpt from an article on Forbes.com . It highlights some strategies retailers can use to help get themselves and their customers through the economic storm:

"In the short-term, retailers need to continue providing sales incentives, discounts and promotions that demonstrate value to the consumer. Incentive packages can be offered for cost-saving items such as fuel-efficient cars or energy-saving light bulbs. Innovative ideas to help consumers spend "extra" money will be critical. We have seen this happen already in the travel industry where some resorts are providing gas cards for guests driving to the destination.

Retailers with a strong, customer-oriented Internet presence are well positioned to take advantage of the momentum in Internet sales carried over from the 2007 holiday season. Retailers should explore new payment options for customers for online sales, including prepaid gift cards, which would have the added benefit of capitalizing on the increase of customers buying gift cards. Ultimately, e-commerce will help consumers save gas money while having the associated benefit of lower operating costs for the retailer.

Looking ahead to long-term positioning, retailers can improve return on investment for their stores by taking advantage of lower retail space costs for new store openings. With companies halting store expansion and announcing store closings, certain regions have experienced an excess of retail space. The industry should capitalize on better lease terms than we have seen in recent periods.

As mid-range and long-term strategies, retailers will need to focus on properly managing the mix and quantity of inventory held in their stores and distribution centers. In conjunction with maintaining inventory, retailers should seek alternative channels, such as the use of distributors or value-added resellers in lieu of a retailers’ clearance center approach.

Retailers will also be forced to reassess their suppliers and transportation, as well as storage and handling costs, as product costs from overseas, particularly China, continue to increase.

In the end, the U.S. economy is built on both consumer spending power and retail success. If retailers remain determined to help consumers weather this difficult time while bracing themselves accordingly, we can all hope to emerge strong in 2009."

Happy Memorial Day Weekend!

Tags: economic crisis, economic downturn, Generating More Sales, Rebecca Button, recession, Sales
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Staying Afloat During the Storm of an Economic Downturn

Wednesday, May 7th, 2008

If you’ve been reading the financial news magazines and newspapers in recent weeks, you may be a little worried about where things are heading. With financial giants toppling, and the word recession becoming more prominent, what does that mean for your small business?

If you are like many companies, you’re already looking for ways to trim off a little fat. That could come in the form of not ordering as much inventory, looking for employees to lay off or any other cost-cutting measures.

As a matter of fact, many small business owners are already in a panic, with doomsday visions in their heads.

It’s time to stop and take a deep breath.

Fact Check

Look at the facts. Yes, we are in an economic downturn. Because of this, sales are down across most industries as people prepare for a recession.

In many respects, this could be making matters worse. By hoarding finances out of fear of a depression, we may well be speeding up its arrival. An economic downturn, whether or not it turns into a recession, can’t be predicted.

There is no way to know when it will end and everything will bounce back to normal. However, the one thing history does tell us is that it WILL bounce back. That means you can put those doomsday visions out of your head. The end has not come - rather, this is just a bump in the road.

An intelligent businessperson will prepare for the economic downturn and possible recession - but won’t panic.

Manage Debt

Part one of making it through an economic downturn is to manage your debt. Many companies live off a plan of leveraging their debt, counting on being able to roll current loans into new ones when they come to term.

This may not be an option the next time around. Instead, you need to build up your cash reserves so you have a comfortable nest egg in place the sit on during the economic ride.

Broaden Your Customer Base

While the U.S. Dollar may be having a tough time and the U.S. economy may be reeling, that does not mean the rest of the world is having the same problems. While U.S. buyers may be a little more reluctant right now, there are plenty of other countries around the globe ready and willing to find new suppliers.

Try to broaden your base of customers, and add new international clients into the mix.

Investing

If you have managed your debt well and built up a cash fund for your company, this may be a great time to invest in new items for your business. While everyone else is clamming up and afraid to buy, you can use this time (and your extra cash!) to expand your offerings, pick up new customers who want those items - and possibly take the lead in the race against your competition.

Changes in the economic tide are nothing new. Financial markets go up and down as they have for generations. The key to weathering the down times is to keep your wits about you and plan well while taking advantage of any new opportunities.

Tags: Accounting, economic downturn, Finance, Finance and Accounting, Leeia Ladipoh, money, money management, recession
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Don’t Let a Slow Economy Slow Down Your Business

Wednesday, March 19th, 2008

With a falling real estate market, increasing unemployment rates and looming layoffs, it’s no wonder why Americans have slowed their spending. Of course, all that cutting back has a direct effect on businesses in all industries, and most likely yours too. But don’t just accept slow sales as “part of today’s economy”. Put up a fight to gain back your share of the money that is being spent by consumers!

How to keep sales rising even in a down market

Offer better-than-the-competition prices - If money’s tight with your target market, then help them out a bit by stretching their dollar further. Mark down prices, offer coupons and specials - whatever it takes to entice visitors to come to your website or store.

Amp up your marketing - Up until the market slowdown, you may have been coasting along just fine on your existing marketing program, but now that needs to change. If less people are purchasing, then it’s time to appeal to a greater number of people. More marketing doesn’t necessarily have to mean more money; there are plenty of free or no-cost options available to any online or brick-and-mortar business. The point is, do more marketing and advertising than you are doing now and, if money is tight, be creative and come up with your own ideas to draw in customers.

Bond with your customers - Now that business has slowed, take the time to get to know your customers and build your relationships with them. Start a blog, open a MySpace or FaceBook account, or start a newsletter. Bonding with your customers can turn a one-time sale into a regular (and loyal) customer. The hard work you do now can pay off big time later.

Ways to cut costs during an economic downturn

Evaluate your advertising programs - Good advertising can be great, but bad advertising can be a serious waste of much-needed cash. Take a look at your current advertising line-up and ditch the under performers. If you are advertising with pay-per-click programs, like Google’s Adwords, then look at the stats and remove keywords that aren’t coverting. That alone could save you hundreds of dollars a month!

Negotiate prices, costs, and payment terms - Take the time to contact your vendors and suppliers and ask for price discounts and extended payment terms. But, don’t stop there. Give your warehouse and shipping company a call too - and see if you can get a reduction in rates.

Go after past-due accounts - You may have quietly waited for invoices to be paid in the past, but now is the time to take action and get your customers caught up in their past-due accounts. This may mean a phone call, letter, email, or perhaps you should turn the accounts over to a professional collection agency. If overdue payments are a regular occurrence, you may want to think about tightening up your credit line policy.

Just because the rest of the nation is in an economic slump, doesn’t mean you have to join them. It may take some extra work, but you’ll find that there are ways to continue to bring in customers. And once the economy gets back on track, you’ll be pleasantly surprised to see a surge in sales!

Tags: advice, Carrie Hinkel, cut costs, economic downturn, Generating More Sales, recession, revenue, Sales, slow economy, tips
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Tips for Surviving the Slow Down

Thursday, February 21st, 2008

Small businesses are some of the most affected by economic downturns. While these practices can and should be implemented during times of prosperity as well, they will help businesses survive during a recession.

Get involved: Don’t just join local organizations and charities–get on the committee board! This not only will help you stand out and make a name for yourself, but it will also get you meeting and working with more people. Also always keep in mind that strangers you strike up conversations with at the grocery store or fellow parents at a PTA meeting can be new customers/clients. It’s good old fashioned networking.

Reach out to existing clients: These are people you already know need your goods and/or services. Chances are they like doing business with you and are willing to do more if you take the time to think of new ways to serve their needs. If you can’t think of anything yourself, call them up and ask.

Do NOT cut your marketing budget: You need to market yourself more than ever when consumers are shy about where they are spending their money. You are competing even harder to make the sale over other competitors so you need to reinforce your brand, products and services as things people still need, despite the economic downs.

Offer a special service or discount: It may seem counter intuitive to charge less when you need to be making more, but this tactic will get people buying and let’s face it, customers buying at a discount are better than no customers at all. Also a little extra customer service should cost little to nothing at all and the benefits could be very important to keeping your business afloat.

Tags: Accounting, economic crisis, economic downturn, economy, Finance, Finance and Accounting, Generating More Sales, Rebecca Button, recession
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