Posts Tagged ‘economy’
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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How Are Small Businesses REALLY Doing?
Wednesday, October 8th, 2008
Q: Are small businesses really having a hard time right now? Everything seems OK to me. Sure, gas prices are higher, but all in all, things are fine.
Phil
A: I’m sorry, but I simply disagree. I think things are pretty tough right now for most small businesses. That said, nevertheless, I will admit that there is a surprising amount of debate on this issue.
Case in point: I hosted a roundtable event of small business bloggers in New York last week. The event was sponsored by Brother and the topic was, "Who says a slow economy has to slow your small business down?"
I thought that "the slow economy" was a given and was prepared to move the discussion on from that point, so you can imagine my surprise when the very premise of our chat was challenged by not one, but several of the bloggers in attendance.
Their point? That the people they work with, and the ones who read their blogs, and the small business people they know, are doing just fine, thank you very much. Phil Graham was right, one asserted, we are nothing but a nation of whiners and the whole problem with any alleged economic slowdown is that it was fabricated out of whole cloth by the media.
You gotta be kidding me!
There is no doubt that $4 a gallon gas, inflation generally, deflated home prices, and the credit crunch are making it substantially harder for small businesses these days. That there was such strong opposition to that point of view really surprised me.
What didn’t surprise me, though, was that there was also some general disagreement about whether and to what extent small businesses can benefit from new media tools like websites and blogs.
For example, does a gas station need a blog? Does it even need a website? One friend of mine who attended the event thought not, stating that the gas station gets its business via drive-by traffic. Who would bother even checking out the station’s site, let alone its blog?
But I think that is being shortsighted.
Look, amigos, we are living in a brave, new digital age. Hop on the bus, or it will pass you by. No matter what the newest tool is, there is no doubt that a plethora of exciting, new options are available today to help you succeed in business.
What if the gas station had on its main sign something like, "Check out our website - GasSavers.com to download free coupons for 3 cents off per gallon!" Don’t you think that would drive some people to the site? And, aside from the coupon, what if the station then had other specials advertised on its site? What if it had a drawing for a free tank of gas for customers who fill up four or more times this month? Would that not create an even more loyal customer base, and generate even more business?
I have a pal whose e-newsletter is vital to his business, and his business has to do with cars. One colleague uses free e-books to generate 60% of his new business.
This is the beauty of new media. Whether it is your site, your e-newsletter, a viral video, a blog, or whatever, all of these tools work together to create a multitude of new ways to attract new customers, sell more, and market better - inexpensively and powerfully. Even in this economy.
Hop on the bus, Gus!
Today’s Tip: Another way to ensure that you succeed in this tough economy is by keeping your overhead low. This is the very first piece of advice I ever received before I started my first business and is still among the best.
I was reminded of this at the event when I saw a new Brother Professional Series all-in-one inkjet printer on display. The cool thing was that it printed 11×17 pages - in color. That alone could eliminate a trip to Kinko’s for a lot of businesses - for brochures, displays, whatever. Keep your overhead low!
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, column, economic crisis, economy, 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 20th 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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Introducing: The Recession-Proof Shopper!
Tuesday, June 10th, 2008
Ladies and gentlemen, it’s true. The recession-proof shopper is here and she’s here to stay. A new study commissioned and soon to be published by Elle magazine concludes that 8% of U.S. women are still shopping up a storm and show no signs of slowing down. (for full stats check out this article)
So what do you think? Do you think these ladies have what it takes to keep the economy (and businesses) afloat this year? I for one think that it certainly won’t hurt…but it’s not going to come anywhere close to how well those stimulus checks worked-wait….
If nothing else I suppose retail businesses can cater their advertising to focus more heavily on this demographic.
Tags: consumer, economy, Rebecca Button, recession, retail, shopping
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Recession Wake Up Call
Tuesday, June 3rd, 2008
Eve Tahmincioglu who writes the Your Biz Blog over at MSNBC.com had a great post today where she enlisted the help of business coach Dan Murphy, president and founder of The Growth Coach , to help cast some rays of hope down upon businesses that are suffering recession doldrums. I thought I might help spread the word a bit.
His tips are sure to help you regain a sense of perspective and lead you to taking active steps in maintaining your business. His advice comes in the tried and true form of the acronym: M.A.S.T.E.R. (as in MASTER your business)
M is for Marketing. In good times and bad, marketing should be the highest priority for the owner and the business. Marketing is about attracting, serving and retaining customers. Work smart to keep what you have. Sell more to your current customers. Attract new customers. Marketing is simply on-going education to your customers, prospects and referral sources of why it’s in their best interest to do business with you.
A is for Ask Others for Help. Now is not the time to be the strong, lone-ranger. Be strong and smart enough to ask for help. There is strength in numbers and better ideas. Ask your customers — "How can we better serve your needs. What additional needs could we serve?" Ask your franchisor support team for strategies. Ask your CPA for some expense control strategies. Ask your internal team for ideas on how to grow revenues, decrease costs, better serve customers, etc. Ask other entrepreneurs what they are doing in tough times — adopt and adapt their strategies to your business.
S is for Slow Down & Plan. Stop being busy about nothing. Get strategic. Slow down, face reality, think about your situation and do some planning. They need to create a one-year game plan but break it into 90-day action plans and keep everyone accountable for implementing the plan.
T is for Tough Decisions. Wake up! Now is not the time to be everyone’s friend or to maintain the status quo. You are the head coach and have to make some bold calls and even change up the roster. Your first goal is to survive and be in a position to thrive. Cut expenses and reallocate for marketing — dare to invest in sales and marketing. Cut loose non-performing employees. Redeploy more people to the front lines — sales and marketing. Fire customers that cost you money. Ask others who benefit from your business & success to share in the tough times with you and reduce their costs — CPAs, printers, vendors, suppliers, advertising channels, etc.
E is for End Excuses. Everyone needs to be held accountable for results. As owner and head coach, do not accept excuses, only results. You must provide accountability for everyone, including yourself. Lead by example. Just because the economy is tough, that is no excuse to lay down, to give up, and to allow things to happen. Now is the time to dig deeper, hustle, and out maneuver others. Get more creative. Do not play the role of the victim. Accept the truth that things are a bit rough. So what? The rough economy is not the real problem, your not confronting the problem and taking new actions is the problem.
R is for getting Re-Focused. Like a champion sports team, every one of your team members should have absolute clarity about their role, responsibilities and goals. They should not confuse being busy with accomplishment. Get them focused. Be honest and frank with your team — if sales are down, give them the facts. Everyone, from receptionists to managers, needs to face reality and positively go about improving on that situation.
Tags: economy, Growing Your Business, Rebecca Button, recession
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Where American Airlines Went Wrong
Thursday, May 22nd, 2008
I’m sure you’ve heard all the ruckus surrounding American Airline’s announcment that it will initiate a checked bag fee as well as increase fees for other services on top of jacking up actual ticket prices. All in the name of the weak economy and soaring fuel prices.
There’s the saying that you can’t please everyone. And it’s true, especially if you are in an industry that serves millions of people a year. But what happens when you don’t please the majority of your customers? Sit back and watch in the next few weeks.
The following are some of the major issues that have come to light following the announcement:
Customer Service: First and foremost, whether AA had decent customer service or not, the fact is that it doesn’t have the kind of customer service that separates them from the pack. Therefore, fliers group them in with the rest of their bad experiences thusly creating their first big problem-customer trust and loyalty is compromised. When times get tough, these customers aren’t going to be understanding.
Price Jacking: Everyone knows prices are going up across the board. And they knew airlines would be no different. The problem here is where and how AA raised their prices. Ticket prices are constantly going up and down…had they lumped all their price hiking into the cost of tickets it would not have caused as much of a stir because it is an area people expect the prices to fluctuate. Instead, they tacked on charges for things that were previously "free" (checked baggage) or low cost. This gives people the impression they are being extorted and this, is problem number two.
Timing and the Blame Game: AA hasn’t given anyone enough time to adjust to the new price changes. As of June, it’s go time. What would have happened if they had increased prices slowly over time as gas prices went up? People still wouldn’t like it but they wouldn’t feel taken by surprise. Also, AA (and I’m sure other airlines to follow) is making it out like they are the only ones being affected by the economy and price of oil…well guys, we’re all suffering aren’t we? It surely is a reason, but it’s not one that is going to give customers warm and fuzzies about the situation. Instead of laying blame, find some positives and highlight them. If nothing else it’ll take the sting out of the price hike.
Take heed of this bad example and as you wade through the economic crises, learn from others mistakes. For some guidance on a different approach to price hike strategy, I suggest you read Markup on Cost Versus Gross Profit Margin .
Tags: american airlines, economy, fuel prices, oil prices, prices, Rebecca Button
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Beat the Weak U.S. Dollar–Go Global!
Wednesday, April 30th, 2008
Expanding overseas is a common idea entrepreneurs have in their business plans as a "down the road" growth option but with the recession and subsequent weakening of the U.S. dollar, it might just be the key to keeping your business afloat. Many companies are able to sell their products for twice as much as they can here!
While opening a brick and mortar store is certainly optimal, if you are a small company who doesn’t think you can spare the capital to do so, don’t fret. Another perfectly viable option is to open an international website (ie. a .uk site). Yet another option is to ship over seas and accept various forms of currency, if you’d prefer to test the international "waters" before you take the plunge.
Be forewarned however…going global is no easy (or small) task. Tracey Mullin of the NRF’s STORES Magazine states:
"In addition to potential hurdles with vendors, disparities in laws and differing customer priorities, retailers must identify a merchandise mix that appeals to a new demographic. While the transition may be a bit easier for online retailers, these companies face their own challenges nuances in language, inventory control, even the selection of website colors and fonts."
Yes, it’s risky and a lot of work…but it just might keep your business from succumbing to this dismal stateside economy.
Check out our Doing Business Internationally articles for more tips on how to get started going overseas.
Tags: Doing Business Internationally, economy, global business, international business, national retail federation, Rebecca Button, STORES Magazine
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The Great Consumer Schism - Tips for Brand Name Retailers
Monday, April 28th, 2008
It’s begun. The Great Consumer Schism is effectively working its way through America-an event last experienced in this country in the ’70s. Economic disparity in America is nothing new. But in times of recession the division is inflated and even more apparent as seen through shifts in spending habits. It makes perfect sense of course that middle to lower income households are switching from brand name items to generic in order to save a few bucks.
So what does this mean for retailers? Well, if you sell cheaper products, this is great news! If you sell brand name (and therefore more expensive) products you may want to reconsider your strategy. Here are a few suggestions:
- Consider including cheaper items in your inventory as an alternative for customers with tighter budgets.
- Revamp your advertising to appeal strictly to wealthier customers.
- Revamp your advertising to enforce the value of brand name products over generic.
- Offer "freebies" along with the purchase of certain brand name items.
- Have a sale! Who doesn’t love a sale?
These are just a few ideas to get you started thinking in the right direction. For more tips check out Don’t Let a Slow Economy Slow Down Your Business
Tags: brand name, economy, Generating More Sales, news, Rebecca Button, recession, retail, Sales
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Fuel-enomics: 10 Tips for Small Businesses as Prices Continue to Rise
Tuesday, April 22nd, 2008
Crude oil prices are up 16% already this year and show no signs of slowing down. So without further ado and straight from the dailybreeze.com here are 10 great tips on how small businesses can deal with the soaring gas prices:
1. Add a separate fuel fee. Call it a fee, call it a surcharge - call it whatever you want. But more and more small businesses are tacking on a special charge to offset the cost of gas. Customers may not be happy, but most understand since they’re dealing with the same situation themselves. They don’t expect small businesses to absorb gas price increases forever.
2. Restructure your pricing or territories. Some businesses are restricting the areas they serve, or charging more to go out of area. Others are raising minimum charges or putting tiered pricing in place to compensate for having to travel greater distances.
3. Use an outside shipper. Small businesses that once delivered small supply orders themselves are finding it cheaper and more efficient to send things via UPS or the postal services. In many cases, items arrive in just a day or two. Shipping services Web sites such as RedRoller.com can help you find the lowest-cost carrier.
4. Leverage the Web . Show customers how buying online and by mail order can save them money by not having to visit your location. Use Web-based collaboration sites to "meet" with clients, freelancers, partners and others rather than meeting in person. A few choices include Zoho , Basecamp and WebEx .
5. Hop into a hybrid. A few years ago, there were only a couple of hybrid models to choose from. Now there are dozens, including SUVs and vehicles suited for small-business needs. Even if you don’t get a hybrid, lighter-weight vehicles and those with smaller engines may be far more fuel efficient than what you have. If you plan to switch, a great place to compare fuel efficiency information is at FuelEconomy.gov .
6. Charge by the mile. If your business or profession allows for it, a per-mile charge might work best. This allows for small adjustments whenever needed. The standard IRS mileage rate for 2008 is 50.5 cents per mile, up from 48.5 cents in 2007.
7. Drive less. Have your suppliers deliver items you need to your business rather than picking them up yourself. Use online map-routing services like MapQuest.com to plan service and delivery routes better, for maximum fuel and time efficiency. Group jobs together to reduce travel.
8. Get rebates on gas purchases. Gas rebate credit cards are increasingly popular with small businesses and can net you cash back of up to 6 percent on what you spend. The higher fuel prices go, the more you get back. Just be sure you pay the bill on time, or interest charges will more than eat your savings. Find gas rebate cards at CreditCardGuide.com or PumpandSave.com , which currently lists the Discover Open Road card as the best deal with 5 percent cash back on all gas and auto maintenance.
9. Find the cheapest gas. While it doesn’t make sense to drive far to save a few pennies, there can sometimes be a surprisingly large price difference just a short distance away. GasBuddy.com and GasPriceWatch.com are two Web sites that specialize in helping find the cheapest gas in your area.
10. Follow fuel-efficient driving tips. You’ve probably heard them - avoid jackrabbit starts; keep tires properly inflated; run air conditioners less, keep vehicles tuned and air filters clean, etc. WikiHow.com has a long list of ideas for "How to Save Money on Gas." Search the title at the site.
For more tips check out Oil prices are going up–ways to cut down on the business energy bill and Little Cost-Cutting Tips that Add Up to Big Savings.
Tags: economy, Finance and Accounting, gas prices, Rebecca Button, small business, 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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