Depending on which politician you’d like to believe, the economy is either heading for a recession, already in a recession, having just a bit of a slow down, or things are just peachy. I’m no economist, but given the ever-increasing price of food and gas, more and more people seem to be pinching pennies than before. Whether you use the “r” word or not, the economy does seem to be heading downhill.
As a business owner, during down times you need to resist the temptation to freak out and cut all spending. When the economy tanks, doom and gloom news is everywhere, so it’s natural to look for places to cut costs. However, one thing you should not do is stop marketing. The reality is that some businesses actually make more money during a recession because they don’t curtail their marketing when everyone else does.
Over the years in our business, we have weathered a number of down cycles, so here are a few tips for making sure your business thrives, even when the economy does not.
1. Diversify your product line. This advice is contrary to just about everything you read about targeting one market and focusing on it. Yes it’s easier to focus on one market, but what if that market is hard hit during a recession. We experienced this situation first-hand during the big dot bomb bust. Since that time we have made an effort not to put all our eggs in one basket. Although we still have products that relate to computing, we now also offer products that relate to pets and vegetarian cooking. Let’s face it, no matter how bad the economy gets, people still have to eat. And many of us will still own pets.
2. Offer products at multiple price points. During a recession it can be difficult to sell high-priced products and services like consulting, so consider offering more low-end options as well. When people start pinching pennies, it’s a lot easier to drop $20 for a book that explains a topic, than to invest in a consultant to do the work for you. I tend to think that’s why our book Web Business Success is selling better now than at any time in the past. In the absence of funds, more people take a “do-it-yourself” approach.
3. Spend wisely and think creatively. Although cutting all spending is not a good idea, pay close attention to the money you are spending and look for bargains. For example, I just took advantage of a huge sale from an online printer. They were offering low-cost color postcard printing, so I created postcard artwork for four of our books. I also decided that a bookmark is basically about the size of half a postcard. I have a paper cutter, so I can create two bookmarks out of every postcard. The end result is that I now have 400 bookmarks and 400 postcards that cost me about $70 total.
4. Don’t panic. Unfortunately, thanks to the news media, every time the economy takes a dip, the media feels compelled to harp on it. Avoid watching the news and focus on what’s important. Realistically, business basics like offering outstanding customer service never go out of style. Listen to your clients, treat people the way you would want to be treated, and don’t spend money you don’t have.
Like everything else, the economy is cyclical, so you should plan for bad times. We have been preparing for this economic downturn since the last one. After all, what goes up must come down and vice versa. The best advice is simply to be prepared. If you plan for it, any business can be “recession-proof.”
Confused About Marketing Online?
Web Business Success: The Entrepreneur’s Guide to Web Sites That Work is the book that cuts through the clutter with the information you need to get a site online and then market it effectively. Packed with useful information and a lack of gratuitous”geek speak,” the book offers practical advice, whether you opt to create a site yourself or hire a designer to do it for you. Recently, a SCORE volunteer called it”a great book for any entrepreneur to read and devour. 5 stars!” Read more about the book and get a complimentary Web Business Case Study just for stopping by.