Posts Tagged ‘recession-proofing’
The Presidential Election and Your Small Business
Thursday, January 17th, 2008
The presidential election will impact your small business. The question is not if, but when and how. You have control over much of the impact, depending on how you choose to vote. Your business can wait for election events and be reactive, or you can get out front and be proactive.
You see many businesses choosing to use the election and other current events as inspiration for marketing campaigns that capitalize on the public awareness of the political events. How could you do this for your small business?
* Create voting buttons for new products to be carried on your site and have your own “election”
* Using the theme of your own “primary”, allow your customers to decide your next offering or product to put on sale
* On your website, simulate a “debate” between a couple of your products and services and your competition’s. Make sure not to violate any copyright laws during your mock debate and always change the names to protect the innocent (and not so innocent).
Try not to appear political in your marketing ideas as far as taking sides with candidates or issues. Although it is perfectly OK to use the election as a marketing topic, you don’t want to take sides - stay out of the actual politics.
On a more serious note, be aware of the campaign issues and the potential impact to your business. For example, if you import products from outside the US, make sure you are aware of the candidate’s positions on trade and other related issues. Depending on which candidate wins, you may need to shift the strategy of your business to more or less depend on overseas suppliers.
With the economy being very sensitive during election years, make sure your business strategy incorporates this knowledge into your planning. This may not be the best year for expansion of your small business, or it might be depending on how your niche is reacting to this economy. Take steps to recession-proof your small business .
Make sure your company is providing products and services where the rubber meets the road. You want your business to be seen as indispensable to your customers, so they will continue to purchase your products and services pretty much no matter what the economy does or who is elected president.
Update your business plan , taking into account the election, the issues, and the economy. Have viable alternatives for each of the major scenarios you believe possible within your niche segment. Stay informed, make time to study, and don’t hesitate to take action when you know the time is right.
Presidential elections, difficult economic conditions, and changes in governmental policy present challenges that can be viewed as obstacles or opportunities, depending on your viewpoint. If you view them as opportunities you can make your business better and improve your situation throughout this next election year.
Tags: business plan, elections, Growing Your Business, larry Slusser, politics, presidental election, recession, recession-proofing, small business, updating your business plan
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A Rising Economy Floats All Boats - Be Ready if There’s a Storm
Tuesday, January 15th, 2008
You have probably heard the saying “a rising economy floats all boats.” The business metaphor of course refers to the fact that when business is good, even marginal business owners make money.
There is another saying that is not quite G rated enough to share in earnest, but it relates to the fact that you don’t find out the color and style of swimming trunks those around you are wearing (or not wearing as the case may be) until the tide goes out. The point being that when the economy goes south, those in business can be exposed.
It is possible for a marginal business owner to do really well in a strong economy. Conversely, it is possible for a strong business owner to do poorly in a weak economy. How can you ride the wave (so to speak) and make good money in a good economy, and still make enough money in a not so great economy?
The 3 things you as a business owner can do to help insulate your business from a down economy:
The first thing you need to know to succeed in any economy is your business. That may seem oversimplified, but you need to be the expert on your business. How is your industry doing? How does it do in different economic conditions? Is it seasonal at all? Dependent on the interest rate? The price of gas? The cost of shipping? If you don’t know the answer to these questions, you need to get to know them soon.
The second thing you must know if you are going to succeed in any economy is your customers. What do your customers want? Are their needs changing? How is their business doing? How do the factors hitting your business affect them and their business (if they are in business)? If you’re in retail, what are your customers’ buying habits and patterns? Is it seasonal? How does marketing affect their purchases?
Again, if you have no idea about the answers to these questions you need to spend more time thinking and studying your business. There are people so busy working in their business, they don’t spend any time or effort working on their business. You have to make time to study your industry, your business, and your customers. If you don’t, who will?
The third thing you can do to becoming resilient in any economy is to create your own economy. Yes, create your economy. Develop such a loyal following through superior customer service that customers will buy no matter what. Have a product or service that is so valuable, your customers will purchase it and keep purchasing it no matter how bad the economy or how great the competition gets.
While no business is ever fully insulated in a tough economy, by following these three steps, you can at least get the point where you don’t feel so exposed when the tide does go out…..
Tags: economy, Growing Your Business, larry Slusser, preparation, recession, recession-proofing
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Recession-Proofing Your Small Business
Wednesday, December 19th, 2007
For most small business owners, it is difficult to keep up with the broader economic news while still trying to run a company. But as the headlines start discussing the possibility of recession more and more, it’s important for entrepreneurs to pay attention to the writing on the wall and start protecting profits.
So what can you do to make sure that your business is "economy-proof"? Here are ten practical ways to strengthen your business:
1. Make sure your historical record keeping is up to date.
Nothing can bog a business down like drowning in papers. Organize your company’s records and make sure that you have recorded its historical performance so that you can forecast its future growth.
2. Have both a 12-month and a 5-year cash flow projection.
Don’t leave your business’s future to chance. Have a plan and a budget to back it up.
3. Ensure that all processes and procedures in your small business are documented.
Even if the business consists only of you right now, some day you will need to hire employees if you do not want to be forever tied down to your business. Having good documentation helps immensely in the hiring and training process.
4. Hire the best employees possible and invest in their training.
The quality of your staff is critical to your company’s success. Make sure they are well qualified for the task and give them extensive training in customer service as well as the specific tasks they have been hired for.
5. Continually evaluate growth opportunities, whether they arise by purchasing an existing business or customer list, or come from developing a new product or service.
Growth opportunities will present themselves to you regularly. Train yourself in the art of recognizing them when they come along.
6. Formalize your business growth plan and make sure it encompasses all three ways to grow: attract more customers, sell to them more frequently, and sell them more every time they see you.
Leverage your sales efforts. It takes much less time and expense to market to existing customers than bring new ones in the door.
7. Hold monthly management meetings, even if the business consists only of yourself.
If you can explain out loud what happened in your business last month in a way that would make sense to others, you will have a much deeper understanding of your company.
8. Systematize your small business so that it will run effectively even when you’re on vacation or sleeping.
Ultimately, your goal as an entrepreneur is to either have the business run without your daily presence or to sell it for a tidy profit. Both goals require providing a consistent buying experience to your customers through systemization.
9. Test the changes you make in your business to make sure they are effective.
An old business lament goes, "I know I’m wasting half of my advertising money. I just don’t know which half." Make sure that you document the results of any changes you make in your business, such as advertising programs, product or service offerings, or other marketing strategies. Know where your money is going and what kind of a return you’re getting on your investment.
10. Formalize the way in which you and your staff interact with customers to strengthen the relationship and increase sales.
Customers return to franchises like McDonald’s because they know exactly what the business transaction will be. There will be no surprises. They are treated consistently. For your business to succeed, you will have to define how you and your staff will interact with your customers and ensure that they have a consistently wonderful buying experience every time they come to see you.
While you can’t control what happens to the larger economy, you can take some proactive steps to make sure your small business can weather the storm.
Tags: Angie Mohr, Growing Your Business, Numbers101.com, recession, recession-proofing, small business
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