What do most small business owners do when faced with a recession?
What do they do when buyers are fewer and far between?
Earlier this week I blogged about how to grow your business when times are tough and I know that your instincts may be to do the wrong thing.
The natural tendency is to get scared and cut back on your marketing and hope that the downturn is short lived and you have cash to spend when business picks up.
Is this the right strategy? Is running scared the prudent path to higher profits?
For most businesses, running scared during a market downturn will only guarantee that they will come out at the bottom, when and if the market ever picks up. Builders are a great example.
When it was easy to get a mortgage, builders had buyers lined up ten deep at their door. All they needed was a business card and a yellow page listing to get all the clients they could handle. Here in Connecticut, unless you wanted to build a house of over 6,000 square feet you couldn’t even get a builder to return your calls.
After ten or more years of easy money, the lending landscape has changed and any builder who thinks that waiting this out is the right solution will be out of business in a few years. It could easily be another ten years before interest rates peak and come down stimulating the next building boom.
I know you’re smarter than to think you can just wait out this recession. Smart business owners see recessions as the chance get ahead while others are running scared.
How can you prosper in this recession?
Use this proven small business marketing strategy >>
Even in a downturn you can always find more business than you can handle if you know how to market your business. The real estate market is a good example.
One real estate broker called me from Atlanta where prices are down 7% and monthly sales are down by 20%. Instead of crying about spilt milk or running scared he saw this downturn as a great chance to end up making more.
His reasoning was that, while sales were down, 3,564 homes sold in April. With an average commission of $10,000 all he needed to do was instead of just selling one, sell three per month and he’d be making plenty.
Tough times can be great for business because they winnow out the less than savvy marketers and leave the playing field wide-open for smart people like you. Fewer competitors + smarter marketing = more business for you!
If you act scared or market defensively – you’ll see your sales and profits plummet – and they may never recover.
Instead use your marketing to position yourself as the go to expert, continue to build strong relationships with prospects and generate referrals – you’ll prosper even in this recession and when the economy picks up you’ll find yourself ahead of your competitors.
The choice is yours.
To Your Success,