Q: 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?
A: If I had to choose one word to describe small business right now, it would be unease.
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.
Here are a few ideas that you might want to consider:
1. Look for new clients.
2. Spend money where it will do the most good.
3. Increase your shoestring marketing.
4. Treat existing clients well.
5. Add line extensions.
6. Look for government contracts.
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.
Photo by mjamesno .
Tough Times Mean Hard Choices
July 18, 2008 by Rich | 3 Comments
In Advice, Economy, Operations
B Smith @ Wealth and Wisdom on July 18th, 2008 at 1:21 pm
Rich-This is a good and timely post. In my experience a down market is not the time to get crazy and try new things. Time and resources are restricted and you need to apply them to the areas that will get you the best return. It is also not a time to get defensive. Go on the attack!
Go back to the basics and focus on the customer. I wrote Recessionproof your sales to address this very question.
cassy on July 20th, 2008 at 5:56 am
He used down times to refine strategies that can be rolled out in a bigger way during the boom times.
Homejobsite.com on July 20th, 2008 at 2:00 pm
Small business in my opinion is booming, you just need to look at it in the proper perspective.