1. Buy into all the negative hype
Yes, if you listen to the news and pundits, it looks really bad. And we ARE facing some real challenges in the economy. But when the media reports that unemployment figures may reach double-digits, remember that 10% unemployment means that 90% are still employed. And most of the 10% have unemployment benefits that help them pay for essentials. But most importantly, remember that ALL cycles are temporary. It’s not a matter of IF the economy will recover. It’s just a matter of WHEN. Use your resources wisely during this time to increase your market share as competitors falter.
2. Adopt a “bunker” mentality
One quote of President Franklin D. Roosevelt has particular meaning in times like these. FDR said that “we have nothing to fear but fear itself.” At that is just as true in 2009 as it was in 1933. It is fear of losing jobs that keeps consumers from spending. It is fear of a contracting economy and bad debts that keeps banks from lending. The “lender of last resort” (the government) is taking bold actions to counter those fears. Whether you agree with the exact methods or numbers or not, we need to do our part – as consumers, as businesspersons, as citizens. Ben Stein said it best: Those of us who still have jobs and businesses, who are still paying our mortgages, need to overcome our fears and begin reasonable spending again.
3. Cut back on advertising
When times get tough businesses often cut back on non-essential spending. That’s smart. Unfortunately, some businesses see advertising and marketing as non-essential. That’s not smart. A wise business will increase their marketing effort if possible. If they can’t increase marketing expenditures, they can look at ways to get more for less. Keeping an open mind on how to market your business when revenues are down can stimulate creative solutions. But acting out of fear – there’s that word again – can surely destroy you.
4. Cut back on customer service
Customer service is another important part of business that is often considered non-essential and cut back in tough times. Remember that your customers are trying to more with less. They’ll think of you more positively if you help them to do that. Customer service cut-backs left a bad taste in many consumer mouths during the recent boom times and will leave a much more sour taste now. Think of ways to offer more service at lower cost and you will come out ahead in the long run.
5. Keep using the same old marketing strategies
During the Great Depression, unemployment hit over 25% nationally and 33% in many parts of the country. There was no unemployment insurance and no safety net for displaced workers. Yet many businesses still thrived. Some businesses founded in the depths of the Depression went on to become household names (e.g. Allstate). How did they do it? They used proven marketing strategies that worked regardless of the overall economic condition. Direct response marketing was the key to many businesses survival and prosperity during the worst economic disaster in modern memory. Businesses that stuck to the old methods perished in large numbers, but those who made use of proven direct response marketing techniques often thrived.
6. Ignore new technologies
Times are bad. Why try something new? You should try new marketing strategies precisely because times are bad. Turn the negative into a positive by direct contact with new and established customers. Find ways to turn the latest setback into an asset. Turn those casual buyers into loyal customers who will still be with you in the new boom times that lie ahead. Use technology to get more bang for your marketing buck. There are proven direct response marketing methods that you can put to work for you today. Learn them and use them.
7. Let your competitors increase their market share
In any down cycle in the economy, some businesses will lose market share. Lose too much and your business will go under. Some business will gain market share. They pick up the customers of those who go out of business, to be sure. But they also make use of the opportunity to make gains where others lose because they make the mistakes outlined in this article. The ones who lose market share will probably lose it permanently. Those who gain market share will tend to keep much of it as the market turns back around.
So Mr. or Mrs. Businessperson, you have some choices. You can let things happen – or you can make things happen. If you make things happen you will survive and prosper even in these trying times. If you let things happen, you are at the mercy of others. Which do you choose?
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