Let’s face it, our economy here in the U.S. is in trouble. As a nation, and as individuals, we’ve out-spent our means and overextended our lives while saving less than ever before in history. And after decades of being inflated, it appears our economy is entering a readjustment period. This isn’t, necessarily, a bad thing. Yes, people will lose jobs, companies will go under and house will foreclose.
Yet if you run a small, independent business, the economy has far less impact on your business than you think. So you’re likely not facing the doomsday that’s being talked about with every newscast and editorial.
Unless you believe you are. But remember, as a service provider, you have much more opportunity in these times than corporations do.
You see, all this talk about financial meltdowns, depressions, and layoffs are mostly affecting corporations – at least at this point. Sure, job losses and home foreclosures are bad things. I, for one, don’t want to see my friends and their families suffer. But there are millions of us out out here who aren’t working for corporations. And most of us aren’t serving corporations either. Our clients are other small business owners, other service providers and the like.
What this means is that you’re much less affected by what you’re hearing about on the news than the guy working for Ford or GM. As an independent business owner, your job is secure if you make it that way. Even if you’re, say, a corporate coach who’s working with large companies, you can still have a great deal of control over how successful your business is – and especially in troubled economic times like these.
The key is to first not get scared. Turn off the TV, stop listening to analysis on the radio and just pass by those articles in the newspaper. In other words – stop buying into all the titillating stories about how we’re heading for a depression worse than the 30’s. We may be – and I’m not saying don’t pay attention to what’s happening. Just stop listening to all the scare tactics that keep you from focusing on the growth of your business.
Everyone with half a business sense knows that it’s during an economic downturn that you have great potential to increase revenue and grow your business. But you have to have a strategy for doing so. And the strategy often means looking at your business, your customers and clients and your revenue model with fresh eyes. See the changing market for its benefits. For instance, there’s less money being loaned right now by banks – so don’t rely on borrowed money. And remember that a good portion of your competition does. Tighten your own belt a bit to stay out of debt – but don’t tighten your spending to the point of loosing business.
I ranting now, I know. But the thing to realize is that during a repressed economy like the one we’re facing now there are tons of opportunities – if you choose to see them. Be bold in looking for them. Be bold in taking them on. And be bold in knowing that you have a chance to grow your business while many others are shrinking.
Just be smart. This is not a time to overextend your business. And it’s not a time to take risks that bet the farm like you may have in the past when a loan could bail you out. Be smart – meaning evaluate everything you’re doing in your business. Look for places your can be more productive and more efficient. Look at your costs and make sure you’re getting a return on what you’re spending.
And more than anything, evaluate your market. Not only yours, but others as well. Begin thinking of your business from the point of view of your audience. What are they likely dealing with in these times? How can your business help them get through? Look for opportunities inside the problems people are facing. And attach your business solutions to those problems. Then get out there and let people know that you can help them solve the problems they face.
In other words…define and refine your niche market and how you’re positioned to the people in your niche market. Be bold, yet be smart. Find the new opportunities and be bold in claiming them. Yet be smart in how you go about it. Think it, plan it, do it and measure your results. Then do it again. And you’ll find your business growing – while others fade.
How are you dealing with this economic crisis? What will you do if it gets worse? Are you positioning your business to take advantage of the downturn? How?
Let’s talk about it…
And if you need help clarifying your niche, positioning yourself effectively, or figuring out how to grow your business right now, then you’re welcome to a free consultation with me where we can talk about how to solve the problems you’re facing in your business.
(note: image from fabiogis50 AWAY TILL 2/11 on Flickr, 
some rights reserved)
Let’s talk about it
I think there are three things that need to be in place for success in this economic downturn period. 1) CARING, 2) CONNECTING, 3) GOOD DESIGN. People need to show they care about their neighbor. They need to be willing to help spread their business message. They need to connect with their neighbor and collaborate through such things as coop advertising. And finally, they need to have a good design for how they coop their care. This is not pie-and-the-sky thinking. This is the basis of wikinomics. It really does work. You uplift the other guy…first. Think about how Twitter works. You want a good audience for your business? The first step is to become an audience for someone else. That is why Twitter says, “Follow someone.” Well, just imagine what could happen if your little audience decided to re-tweet your Twitter tweets? You would not have a little audience for very long. This kind of synergy is wonderful. Pursue it.
A little Thai restaurant wanted to offer FREE Wi-Fi in a secure fashion, but they did not have the money to afford it. So, what did they do? They reached out to the business community offering splash page advertising. Everyone coming to the restaurant could opt to see clever bizvids prior to going online. The advertising dollars paid for Wi-Fi. Consequently, the restaurants customers have FREE Wi-Fi. The business community has a cost-effective advertising option and the restaurant has more customers. Want proof this is real? Visit http://www.squidoo.com/TTK. Soon the restaurant will be using Wi-Fi digital frames to showcase its wonderful food platters and wonders of Thailand in the restaurant in slides and video. Wi-Fi can make wonderful things happen – especially when mutual collaboration is involved.
Right on, bro. I agree; there is cause for concern, of course, but if you’re wise about it, there’s no reason that you can’t actually improve your situation by improving your focus.
By doing just what you said – re-examining my niche, refocusing my efforts and offers, and, above all, staying positive. Working on the inner is just as important as working on the outer.
I got laid off from a start-up last November. As I dust off and resurrect my consulting business I’m finding that what you are talking about is completely true. Little by little my niche is showing itself and as it does I’m finding that the fabric of my network now is stronger than it has ever been.
And as I look around me I’m seeing the same thing – many home improvement projects around my neighborhood, new products that are highly valued and useful that I invest in. I’ve felt that the roots – the grass roots of the economy are healthy since the news got bad. Glad someone else is talking about it too.
Thanks for this!
Thanks for the post, creating awareness across this topic is very noble of you. Informative and accurate, I appreciate that you are illustrating good idea’s to amplify own ability to act successfully during this economic shift.
I agree that with some common sense and a bit of business know-how we should understand that whenever some are suffering, others are making profit from their suffering. All of the news seems quite negative during these times showing people losing their jobs and getting laid off and filing for unemployment. My comment is – stop looking for a job, make jobs. America runs on small business and we are fortunate enough to open a business without too many headaches. Offer something of value and you are sure to have customers. It is amazing how many ways there are to make money both online and at the storefront yet people seem to be too lazy to take advantage of every day opportunities. Get an idea – go with it! Thank you for this wonderful article!
It is great to hear like thoughts from others. We should emerge from this whole mess stronger and more creative than ever before. The media thrives on bad news, so don’t pay attention. Focus on what is good and push your business full steam ahead.
I think, with this time being here, it is a sign that logic is stepping in. Obviously things will seem to come back to normal . . . But will it for good? What is the logic in here? We are in the time. We don’t necessarily need to go mad. This is a time to truly realize that we need to do something other than that what we normally do. The internet is a vars place of finding ways to make money. One just need to look at it closely. Do a very in depth study. If you want change the situation you are in, you really need to change the way you “do” things. I think what we all should be doing, is get a vision and put great action in it. The world is growing at a staggering pace. I honestly think there isn’t a true way someone (or the US-government for that matter) will stop this. Competition will rise, can you see the logic? We need to start being competitive . . .
I agree that we shouldn’t get caught up in all the fear and negativity. That said, the media is ALWAYS spreading fear and negativity, so it’s ALWAYS good to limit the amount of time you spend watching/listening to it.
Very nice post.
There is most definitely opportunity. I am small business owner who specializes in non-traditional business financing. We have explored new markets and have definitely identified needs. The small to medium market is however, entrenched with fear is absolutely terrified to pull the trigger on new purchases. We hope to be in business in another months time still. I see opportunities, and needs, people (small business owners) are just incredibly cash poor.
Depending in what business you’re in, togh times could be an opportunity in the from of a larger company in your industry going under leaving a vacuum.
I agree that adjustments are needed and fear that the government bailouts are just letting us escape the compression that we need to bear and delaying it for our children to bear.
By the way, I have listed this blog as a dofollow blog and send a few readers your way. I’ve linked to the page above.
I’m in the process of updating the rankings and providing a bit of information about each site. Updates should be up by Wednesday. Let me know if you’d like to change yours.
Warmly,
Linda P. Morton
Excellent post, I completely agree that there is a ton of opportunity now, as so many businesses are cutting back on advertising, and therefore there is less competition.
Also, I definitely like your tip on avoiding the news. I have been doing this ever since reading the four hour work week about 5 months ago, and I don’t have to be depressed anymore about things I have no control over.
Hey, its the second time i read about niche market in your blog and i completely agree with you. Specialize in your niche market and youll be the king.
thanks for your info. I hope the global crisis ends soon and the economy back to normal.
Nice post, I like the up beat factor of it. I too think there is a lot to gain from such times.
“…you’re much less affected by what you’re hearing about on the news…”
I think the news has made this out to be more than it is. During these times I’ve try not to listen to what they have to day about what’s going on.
Many people are going to benefit from the economic situation at the moment but it depends what sector your business is in. The internet is thankfully one of the few places that is doing quite well in out of this mess. I don’t think we have quite seen the worst of it yet though. I read today that global job losses may hit 51 million. : (
Good points. I don’t think the news is helping one bit to solving this economic crisis. All we hear is bad news and it keeps us consumers from spending, which ultimately hinders any kind of resolve.
-Jack
Warren Buffet said the same thing: there is more money to be made in a turbulent economy than a flat economy. I know it is true for small businesses competing against big businesses. During hard times, the big companies are busy laying off employees and taking away benefits. You know, destroying company moral. While all the big company employees are focused on their jobs (that they hate) , it is easier to eat their lunch.
It is true that avoiding the news makes it easier to stay focused. I listen to the news every time I am thinking about spending money so I am reminded to save it in case things get worse. Other than that, I avoid it.
Nice article. Refreshing. There is so much doom and gloom out there that if you allow it to affect you it will and it will bring you and your business down.
We as small business owners have a distinct advantage over larger corporations. We are fast, and speedy. We can evolve with the changing market place. All it takes is like you said, finding that niche and then being the best at what you do.
San Diego Bee Removal
You make good points. Especially about watching the news. The media can bring you down. I am happy to know that small business owner’s will not suffer as bad as I thought. At this point in time all job whether small business or corporation is a risk. Thanks
Thank you for give us your point of view… anycase i fear that this crisis (well in Italy i mean) is affecting a lot also small business company.
I work in a medium one (about 5mil euros incoming per year) and we see that the market has stopped a bit this year for everyone…
Hope will everything go better next months
Hndy tips.
I think its important to understand your customers extremely well. If you look at who are the winners in hard times they are the budget stores as people try to save they will down grade those are the markets to watch out for.=)
Our business surprisingly is doing great despite economic hardship and even negative degree weather and snow everyday on top of it! We were a little concerned about how business would go this winter, but so far I really do think that by being a locally owned and operated “small business” is to our advantage, since we have absolute control over everything we do.
Good tips. As an employee of a very small company, I do feel secure in my job because we have kept our heads on straight and stayed smart. It feels good =)
Nice post. I think you have a good job when writing this article. I will bookmark it in my browser.
I think it is important to stay on top of collection issues, provide value and most small businesses will do just fine weathering the economic storm.
Thanks for the upbeat post! With all the doom and gloom forecast, it is important to remember that your business can be successful through focusing on your niche. We have had to trim back on certain areas of online advertising, but are looking to expand in our local market to compensate.
How are you dealing with this economic crisis?
It has hit hard here in Australia too and I have found where as last year I stuck my fingers into many different pies that my focus for this year is identifying areas that still have room for growth and slowly shutting down areas that are not doing so well so that 100% of my time and energy is being used productively.
New ventures I had earmarked for 2009 will now be shelved until 2010.
Im not panicked yet – my little business is only small and thankfully not my only source of income .. but it is belt tightening time for me for sure.
Great article by the way 🙂
I love your article, I completely agree TURN OFF YOUR TV the economy is getting worse becuase people are not spending and they are not spending purely becuase they are scared. Am not saying be frivilous with your money but as you be smart, its a great time to own your own business and I for one am excited
We should learn how to adapt and keep ourselves surviving through this recession. By the way, it’s a very good and inspiring article indeed, Dawud!
if we learn from adapt,we can know everything for better future 😀
very Good article
“it’s during an economic downturn that you have great potential to increase revenue and grow your business.” YES!
I wish EVERYONE could realize that the media does nothing good for the general population in times like these, or anytime for that matter.
I believe it is Warren Buffet who says something along the lines of “when everyone is confident, be cautious, and when everyone is cautious, be confident.”
Maybe not the exact words he used, but you get the idea. GO AGAINST THE GRAIN of society. With a good strategy/company design and proper implementation, you will be able to make it through ANY market.
Correction on my last comment…I meant mainstream media. This is where the majority of negativity is projected onto society.
I’m optimistic that these troubled times will offer some interesting opportunities for me and my family.
Just don’t panic 🙂
I think this is a great post. It makes sense that bigger companies will suffer more than small ones. bigger companies have more to lose. I think more people should know about this, and it would maybe calm some of their fears.
By doing just what you said – re-examining my niche, refocusing my efforts and offers, and, above all, staying positive
Some great tips, and it is helpful to remember that even in a time of a rocky economic climate, we do need to be smart about this, and maximize opportunities to learn new skills and talents to stay relevent in the workforce.
Thanks for the upbeat post! With all the doom and gloom forecast, it is important to remember that your business can be successful through focusing on your niche. We have had to trim back on certain areas of online advertising, but are looking to expand in our local market to compensate.
At this point all small businesses is in a risk.You made right points, but I don’t want to believe in this.
I am thankful that as a small business owner, artist…I can make changes quickly in subject matter, color, and art related products. I think if we keep our eyes and ears open with an open mind as independent business people we can respond more quickly to the changes ahead. ..and then sometimes soem things remain universal. People will always relate to nature, beauty, animals..the natural world is always there to inspire.
I think bad times always last for a particular period of time and after every sunset there comes the sunlight – the bright morning bringing loads of hopes.
And to sustain when the sun sets, You need calmness, patience and boldness which eventually make a winner out of you!
Dawud,
You are so right about turning off the media. For those of us who are choosing to take our future and the the futures of my children into my own hands, we must stop to money grab going on in D.C.
Most of these people have never had to meet a payroll, deal with a supplier’s terms or figure out a different marketing strategy for a new product or service.
I am so glad to see most blogs and sites talking about us, the average joe, doing what we need to for our family.
Thanks again!
This is a hard time for everyone, even the established mulitnational companies are affected by the crises. What’s good about bad times is that they don’t stay bad get better.
For times like this we all need to do is to hanging on. The sun will shine tomorrow.
Hi Dawud,
So true, I’m just not sure how many people have half a business sense 😉
– john
Thanks for this insightful post Dawud. I’m myself from Canada, and if the recession haven’t hurt us that bad yet, we know it’s coming…
The things that you have written can be applied to any company, whether it is large company or small. The difference is that small companies can’t run big marketing campaigns like large companies.
Hi.
I believe that corporations are both good and bad as far as services go. On one hand you have cheap services but on the other somebody else gains monopoly on the whole domain leaving little to no room for competition. Even if they do have competition there are simple easy ways to make them fail, legal simple ways. Here’s an example, i haven’t heard of a new brand of cars in over 10 years now. Only different things that happened were the selling and buying of certain rights on a various car model from one car company to the other, basically, nothing new. That’s why i strongly encourage small businesses. There are certain key aspects to a small business that people fail to realise. A small business usually means better services at a decent price, most of the times lower price. Granted it’s hard to fight with the loyalty customers have to certain names and services, but it’s not impossible. Secondly, when things are hard that’s the best time when you can make a name out of yourself, step up to the plate and take the lead, my friend. You wanted a chance, here it is! And last but not least, you can never compare a small business with a regular job, satisfaction is way higher, atmosphere can, and usually is, better then most of the places you’ve ever worked, and you have control. There aren’t any more ignorant managers that will reject your ideas, it’s just you and time. So thanks for the nice read Dawud, and for the other readers there, good tips shouldn’t be overlooked! 😉
The power of adaptation can be used as a force to push ourselves out from the desperation and frustration situation. So, we must learn how to adapt from time to time…
Small companies require also that their invoices are getting paid, just like big companies.
And before being able to invoice they need to generate leads, to be converted into customers.
Smaller is not easier, it is just a bit different.
More often than not, troubled economic times are a fertile ground for innovation. I don’t remember seeing the Kennedy’s starving during the great depression.
Even though recessions are terrible for all the people that lose their pensions and savings, they are a great form of cleansing the economy. All the business that are not focusing on sound practice and just focus on the ‘smoke and mirrors’ which is so apparent in todays world of business, will be washed away with their reps tarnished. Indeed it is at this time when small businesses thrive because of the public concern with the corporate giants that usually start these types of mess.
I feel like this downturn has as much to do with everyones attitudes than it does with basic econ 101
Nice blog, ….revenue and grow your business.But you have to have a strategy for doing so.And the strategy often means looking at your business,your……
Dawud, you have hit the nail right on the head. I agree with you. In this times of economic recession scare, everyone needs to be wiser, smarter and bolder. 🙂
Everybody knows about it, but when you saw this written it sounds much larger in our minds, thanks for the awareness!
Definitely good advice – especially about not letting the economic panic put your business into a tailspin preemptively. I’d like to submit an article from our blog to this discussion: http://www.contextsolutions.net/blog/2009/02/marketing-in-a-troubled-economy-why-you-should-focus-on-the-web/
comments welcome.
I just wrote an article about getting through the recession. One thing I would suggest is going to what I call “You U” Now is the time to invest in yourself. There are so many free teleseminars and great books available out there. Also, I it’s a good time to get to know our competition a little better. A little competitive analysis goes a long way. My two cents worth! :}
The media just loves to keep everyone scared. I think the networks found that high fear periods after 911 produced more views so they now they keep pushing the fear factor. Dawud is right about the business world but the same principle are equally important in your personal life. It is much harder to enjoy like if you are worrying about a financial meltdown. If you focus on the potential and the positive, you can grow your business and be a more happy person.
Yeah, I think that there is a huge problem with the way the money is spent in our country. Money is being spent when there is no money to spend. First off the government in the US is in debt that means they don’t have money to be throwing around – yet they are still throwing around money (ie – bail out). And were does that money come from that they spend – they literally pull it out of the thin air. When they need money that just print more. If you ask me that a bit criminal. So I think that’s just one of the problems we are facing and until someone corrects this we are going to be in for trouble,
Got laid off from a pretty decent job a couple months ago, started a biz, never been happier.
Thank you, recession!
Also, I totttttally agree with Rick when he says this downward trend is caused by attitude. People pay too much attention to the sensationalist media and take everything they say way too seriously. People get scared and sell stock because they hear it’s going down in the newspaper, or on the news- not because they actually know anything about the company or its value.
The ones hardest hit by this are the ones contributing to it by propagating this self-fulfilling prophecy.
A recession is a good time to get rid of the dead wood and re-focus on new opportunities and formulate a plan, you’ll feel so much better for it.
I agreed with your thoughts, Dawud. We should learn to evaluate the market and find the best strategics to overcome the financial turbulence. As the old saying, “Always look on the bright side!”…
I like your thought process here. This is not a time to become depressed about an individual or country’s economic problems, but a time to stay positive and look for opportunities that may be available. The old saying is; “necessity is the mother of invention” and these times call for new inventions. Not necessarily a new product or service, but a new way of thinking. We don’t want to live in the past, but learn from the past and look toward the future and the great things that are possible. Great blog Dawud, I enjoyed it throughly!
I suppose the old myth of the mediocre salaried job-goers being the most “job-secure” stands shattered.
If you break out and get independent, the risks are actually lower!
Now, how many people would subscribe to that point of view?
Bold is good.
I like seeing someone occasionally recommending something other than barricades and stocking up on canned goods.
The doom & gloom is real for a lot of people, but that doesn’t mean we all have to surrender to a down economy.
“Turn off the TV, stop listening to analysis on the radio and just pass by those articles in the newspaper.”
That’s very helpful to me because it’s so easy to get sucked into all the negativity!
Create your own life, don’t let the media form you! Do your own thing and be a leader for yourself.
Good post!
it’s a good time to experiment and try new things when business is down (carefully of course) because you have less to lose if you do something wrong but more to gain if you do it right- long term.
hi Dawud,
Great advice. I also hope people won’t listen to the “doom and gloom” media. As you say, this is the time to buckle down, be smart, work hard, and succeed. I look at the slow down as an opportunity for competitors to go out of business, but we don’t plan on doing that. 🙂 I just hope businesses will keep going to trade shows (and buying trade show booths) as this it the time to be marketing, not planning how to close!
~ Steve, purveyor of portable trade show booths and eternal optimist
I will just say be there no mater what. prove your self in all times as helpful and people will trust you and you will succeed
Hmm, Tony. A piece of metal, and chanting.
Now, since you omitted to mention it, what have they given up for those things?
thanks for the encouragement, small business will be in a small direct affect and big business will be affected hugely. but it will be a great time to test your business and try to reach the limits. if you can succeed in increasing your business in this time you can do great job when it’s over
You have to separate yourself from the rest when it comes to small businesses. Make your customers remember who you are.
Great article, spot on! I work for a relatively small firm, and we are have a great opportunity to establish ourselves as one of the leaders in our niche. Clients are looking for better and better ROI, and that is something we can deliver.
I agree that once you have found your niche you need to completely dominate it. Be everywhere where you customer is so they know who you are.
“Think it, plan it, do it and measure your results. Then do it again.”
Excellent advice. I need this tatooed on my forehead! 🙂
very interesting blog i will have to take your words into consideration with how tough times are right now and also you offered great insight as well
Really interesting article, and I couldn’t agree more on several of the things you said.
What people have to remember is that the media makes money by selling papers, and they do this by writing alarmist things! It’s the same in all the media… It isn’t so much ‘news’ as ‘what sells’. It’s a dangerous game their playing though, as the media and opposing politicians ‘talk down’ the economy for their own ends.
Right at the start you mentioned how big corporations don’t effect many of us… Well I’m with you in part, but I think you’d be surprised how interconnected everything really is. You might think you’re insulated from the world, but in reality if:
Bob down the road looses his job he stops buying his newspaper, which in turn hits newspaper revenues… People stop advertising because circulation is falling… The newspaper stops sponsoring the local high school football team… Their team can’t afford to run… So they no longer need their website looked after – which effects me.
You’ve made several great points and I’m very grateful for the encouragement.
I, for one, like the fact that I’m nimble on my feet and can switch directions at any moment. It really helps… and it’s during times like these that I’m best able to help my clients refocus. Because the economic situation makes them far more open to suggestion than ever before.
-Art
The Business Growth Consultant
im forgetting about money at the moment, working on building a reputation, helping people for free or very low cost hoping that when we are on the other side they all come to me!
My grandparents managed through the depression just fine because they did not focus on themselves. The focused on the trouble their neighbors were having and how they could help. Focus on what you can do. take action, and lend ahelping hand where you can.
Change is always good…
Just thought I would throw in my 2 cents worth and a view from here in Australia. Prior to the really bad recession of 89 I had couple of small businesses with 70 employees and a healthy overdraft. Paul Keating, Australias then Prime Minister, forced Aus into recession by raising the interest rates up to the point I was paying 24% on my overdraft. I went broke lost everything and my staff all lost their jobs and everything that flows from that. The point to this is that this recession is different. In my view it is a recession where the governments want you to succeed so like most of the above are saying… have a go. I have only 2 pearls of wisdom beware the banks and carry as few (if any) staff as possible because you generally end up working to pay the staff before you pay yourself. As a footnote things are sweet at the moment as I started another business which concentrates on helping the not-so-well off and although I will never be financially rich from this venture the fabulous heart felt comments of my clients is sufficient to see us through.
I too feel this is a time of opportunity, a time to re-evaluate the structures we’ve held in place.
I’ve spent all day (yes, really all day) reading your site, and those sites you’ve recommended, to learn more about blogging (newbie here!). It seems like a good way for me to reach out and connect with others.
My biz revolves around energy flow for health & wellness (in person bodywork, distant energy work, workshops/classes). It’s time to take responsibility for our own healthcare and, when done in a preventative way, doesn’t have to be a huge burden. I’m not real clear yet how to successfully blog it, or even categorize postings, but it feels like it’s time to learn.
My backup: I work 2 days a week at a high end hot springs resort spa offering massage, spa services and energy work – we’re real busy there!
Definitely right about the not getting scared part. Fear is never the appropriate motivator.
I hear all the time about crysis.
Always bad news but we need to be smart and work hard this times.
Never give up!
People need to be creative and give more for the world.
I think that’s the way it should be. A courage to go forward whatever happens… will save the day.
I actually believe that a small business is vulnerable, perhaps even more so than a larger business these days.
With many larger firms, some sort of government assistance is available, particularly if your business has to do with finance.
Many smaller mortgage lenders have gone out of business, not because of subprime mortgages, rather their inability to gain access to the same funds that the big banks have access to.
Hi Dawud
Thanks for the article. In this time of doom and gloom, it’s very refreshing to hear your point of view. Sometimes it’s hard to block out the negativity but I know you are correct, and if you focus on your business, you can succeed.
Also being creative is extremely important in these situations. It will help to find new ways and means to achieve the ultimate goals.
Important issues – guess it’s good to “shake the tree” once in a while, to root out unhealthy business and business models… But I do think the constant talk about the financial crisis could become a self-fulfilling prophecy at a certain point in time – just my 5 cents 🙂
I don’t belive in Economic Crysis. People are taking about but I don’t care.
My friend likes to talk about finance, banks which are stealing money and problems with work.
Turn off radio and don’t watch tv.
I like this one “The key is to first not get scared. Turn off the TV, stop listening to analysis on the radio and just pass by those articles in the newspaper.” ..
Thanks you for this article.
Excellent post! Thanks for sharing, I will be back again soon.
Times are tough but I agree that you have to learn to ignore the media and focus on how you can take advantage of the situation. In the past many, many businesses have used the economic down turns to grow there business and with a little creative thinking and a well thought out and organized strategy any small business owner can do the same.
You offer some great advice. First, do not listen to scare tactics; I hate seeing so many people buy in and listen to reporters that clearly don’t even understand what is happening. Second, this is the time where small business owners make the most money. My company, which is small, has almost doubled in size since this whole ‘economic meltdown’ started about a year ago. Goes to show that the media is hyping it up. Regards!
Sorry about that, didn’t mean to submit that.
Anyway, I think if small businesses have a good internet marketing strategy set up, they should be OK. If they only rely on local sales, tv ads, etc. they may go under. The times are changing, and those that aren’t going to adapt won’t be lasting much longer.
Dear “SARAH” we can’t do this.
This is a reality and we have to face this.
If we do the business on our own we can get more profits even with a less investment. So try to develop the individual business as such.
Thanks for this very interesting and informative hub.. Keep up the good work!
We are going to be in a down cycle for another six months at least. So pack your money into a box somewhere and hold on.
That was the most desired and wanted article for me, as i started to mentally sink down about our business, we’ve opened an auto repair station just right in the beginning of crisis, of course, it brings some money,and we expect more profit. Despite of the fact that i know that cars needed, need and will need definite kinds of repairs, but all those CRISIS talks make me afraid of our little enterprise’s future.
As an established small company you may be right but for internet startups with no organic search engine rankings times are tough unless you are a creative marketeer. The fact is, new web start-ups of the past relied heavily on PPC to get them by whilst their organic rankings rose in the search engines but bankrolling that nowadays can prove tricky. In my industry I have seen a dozen start-ups go bust in the past 6 months and I know it is down to pay per click. At up to £2.50 per click and 300 clicks per day there is only so long the bank is going to keep extending your overdraft and giving loans to you in these tough times.
I know things will pick up. all the talk is keeping things down.
Very interesting, I will be contact you soon 🙂 Thanks for the advice already.
Listed companies with shares on the board definitely will be affected by the crisis.With them affected,means business will go to the SMEs. Indeed a good chance, shall be optimistic to it.
In my opinion, the most important thing is to stay positive minded and diligently finding opportunity in this economic downturn period. Try to strategize the business and re-design the business model if necessary. I believe we can overcome the dark economic crisis and success in the last.
i also agree that we shouldn’t get caught up in all the fear and negativity
Good post! I’ve been having a lot of economic troubles right now with this crises. We’re currently working on restructuring everything and maybe get out of the hole we continue to fell into…
Thanks for a very much needed post. When small businessmen are being very cautious about how to proceed in these difficult times, you tell them not to get scared but to be bold instead. I think it is true. If you are scared, you might stop spending money to improve your business or on your advertisements to the detriment of your business.
You have some good points here. I am one of those people who experience some sort of paranoia whenever I listen to news and reports regarding our economy. So I strive harder to improve business because I am afraid to be among the statistics of closed-down businesses.
another awesome post! Informative as usual, I will be back again to see what else you’ve got going on that’s new!
You are right about relevant websites creation. In this economy people are searching even more now new business opportunities. Who wouldn’t want to saty at home and work with the computer.
I only wish that there are actually less online marketing opportunities, so it is not as daunting. I came accross social media websites creatiobn by Andrew X, socializer websites- sound nice to try and see if it works.
It’s funny that I actually started my small business right as the recession started so I don’t really know any better but it’s not as bad as everyone is makeing it out to be either. Great post.
The media is perpetuating the fear and negativity no doubt. I understand things are not going well in the housing, stock, and job markets – but lets not obsess over it. We are resilient and we come out this stronger than before like we always do!
As far as smaller to mid-sized companies I think many should look into ways to cut costs for now and one thing our firm has done is hire a PEO to help with the HR functions in our business while saving a little money in the mean time.
As in every recession, there is huge opportunity. Most of the successful people I know started building their companies in when the economy is a low ebb. You can negotiate cheaper rent, haggle more with suppliers and there are some good employees out there who have found themselves looking for work. The key is being smart with your finances.
Quiet interesting article. I really enjoyed reading this. Thanks for sharing the information. I totally agree with u and if things are followed in this manner its really going to work and going to prove beneficial.
Very interesting post you got there. Glad I found it. It shed some light about this whole financial thing going on right now.
Warm Wishes,
Joel
It has made a huge difference turning off the “boob tube” in our house (except for Idol :))
The constant doom and gloom from the talking heads does nothing but send a message how everyone is suffering.
I am so thankful we started our business several years ago to control our own destiny. Thanks for a great place to vent our feelings.
Well I really like the idea of trying not to listen to news and newspapers… I think they cause panic on us… and the most of the times this thoughts just make us feel more negative and that really affects our business. So try to be positive…
A little healthy fear is good to have of course, but you also have to be willing to take risks if you want to have your business succeed and make money regardless of the economy.
These are good tips and I wish everyone trying to make it these days luck. Everyone needs to remember that even with the big guys falling there is plenty of room for the little ones, maybe even more room.
Thanks for the encouraging words, we’re just opening our second dance studio. Even during tough economic times, you’ve GOT to dance!
It’s hard to be tough when you see 50% income drop, yet your monthly expenses remain same. You need to cut expenses, but than it affects other businesses. Never ending circle.
Thank you for give us your point of view… anycase i fear that this crisis (well in Italy i mean) is affecting a lot also small business company.
Listed companies with shares on the board definitely will be affected by the crisis.With them affected,means business will go to the SMEs. Indeed a good chance, shall be optimistic to it.
Thanks for the post, creating awareness across this topic is very noble of you. Informative and accurate, I appreciate that you are illustrating good idea’s to amplify own ability to act successfully during this economic shift.
Making money in good time or bad doesn’t matter. But I personally would prefer Good. Times are hard for too many people.
It’s a great time to go after bigger better accounts and clients as our competitors are cutting back on all marketing. Downturns are great opportunities for us all!
Thanks for the upbeat post! With all the doom and gloom forecast, it is important to remember that your business can be successful through focusing on your niche. We have had to trim back on certain areas of online advertising, but are looking to expand in our local market to compensate.
I think they cause panic on us… and the most of the times this thoughts just make us feel more negative and that really affects our business.
Listening about the economic crisis will not help the individual economic situation. But it help how to focus on the business. The first thing is trying to get free from our debt. Earning extra money from internet at part time really helpful.
It’s hard to be tough when you see 50% income drop, yet your monthly expenses remain same. You need to cut expenses, but than it affects other businesses. Never ending circle.
At the outset of the recession, I saw many clients spending money to get ahead of the curve. Not so much anymore. I have also had to cut my prices dramatically – I tried not to, but just lost too many jobs to the competition,
Really nice articlem you are totally right. It is true that there is crisis but we don’t have to panic. the best way is too stay calm and continue your business waiting for better days.
We can make money in good time or bad. It doesn’t matter. But I personally prefer Good. Times are hard for too many people.
I am so thankful. We started our business several years ago to control our own destiny. Thank you for giving me a great place to express our feelings.
I think in these times, the best way to survive for small businesses are contacting old, satisfied customers with special offers. You may prompt them to finally get that item they’ve never got round to getting!
Tuff economic times call for bold measures and opportunities that reflect the market conditions. A real estate becomes harder to finance sellers are having to participate in the transaction creating new investment opportunities for buyers of cash flow notes.
I think in these times, the best way to survive for small businesses are contacting old, satisfied customers with Thanks for the upbeat post! With all the doom and gloom forecast, it is important to remember that your business can be successful through focusing on yourspecial offers.
It is great to hear like thoughts from others. We should emerge from this whole mess stronger and more creative than ever before. The media thrives on bad news, so don’t pay attention. Focus on what is good and push your business full steam ahead.
My strategy is to work 18 hours and sleep 6 hours.
Thanks for the upbeat post! With all the doom and gloom forecast, it is important to remember that your business can be successful through focusing on yourspecial offers.
Personally I think that the economy, globally-speaking, is actually in a far worse state than the even the biggest media scaremongers are willing to admit. The phrase I hear more and more is about “getting the economy back on track” when it’s the track that’s actually the problem. If we don’t bring the track up to code we’re only going to derail again, perhaps even worse than before, because we’re still rattling along on a rail network built in the age of steam power.
You do raise some interesting points however, like about small versus big business. Big businesses have much more invested and therefore far more to loose. The sheer scale of large corporations, and the various layers therein, mean that there are too many people involved in the decision making process and so they cannot always adapt quickly enough.
I like to use the analogy of the ocean liner versus the speedboat, the bulky ocean liner can take an hour to turn around whereas a speedboat can do it in under a second. This is where small businesses have the advantage.
Even if the captain of a big liner sees the iceberg on the horizon, they’re powerless to avoid it, whereas the speedboat can weave in and out and make second-by-second adjustments with ease.
An entrepreneur is a risk taker, but in these treacherous waters, I feel it is riskier to be an employed passenger on a large ship (with only so many lifeboats) than to be steering your own small craft.
Yes, your smaller vessel is more vulnerable to the tides and ultimately the fate of your vessel lays on your shoulders alone, but a good captain is always able to make fast adjustments. It isn’t so much a question of always knowing which direction to take, because, nobody, no matter how successful, is right 100% of the time. The real trick, therefore, is to be able to realise when you’ve made a mistake and adjust your heading early on.
In calm seas mistakes can be forgiven, but right now the seas are anything but calm. Those who are blinded to their own mistakes, by greed or vanity or in some cases both, those who fail to take into account the changing needs of their customers, changes in the economy or the latest technological developments are going to end up shipwrecked.
Anyways – enjoyed reading your post.
And I think that’s enough transportation analogies for one night.
With all the doom and gloom forecast, it is important to remember that your business can be successful through focusing on your niche. We have had to trim back on certain areas of online advertising, but are looking to expand in our local market to compensate.
Very informative article. I am trying to use the economy to find business as I just started my Long Beach CPA firm. My initial thought was to offer reduced rates and try to steal business. Not sure which way to go.
Thanks,
You have given some nice tips in this article. Keep up the good work. Even I agree that during the economic downturn, we have some excellent opportunities. We have to look for them.
Trade shows are viable, they are extremely valuable to create a network and build relationships. There are no other places that you can come face to face with so many decision makers.
I have seen the decline with some of them, but also the rise recently in attendance. I think smaller companies began to take advantage of trade shows during the last year, when some of the larger companies decided they were not exhibiting.
In fact though times could come in hand if you can reach the hidden possibilities and explore them to your benefit. Big business comes from great fidings and actually for internet entepreneurs economic problems doesn’t exist if they are smart enough 😉
is great to hear like thoughts from others. We should emerge from this whole mess stronger and more creative than ever before. The media thrives on bad news, so don’t pay attention. Focus on what is good and push your business full steam ahead.
Even if the captain of a big liner sees the iceberg on the horizon, they’re powerless to avoid it, whereas the speedboat can weave in and out and make second-by-second adjustments with ease.
Great posts…….as stated and in my own words, I will say that this is indeed a wake up call for all Americans.
In the long range, this will teach us the core values of money.It is time to stop paying the piper and start taking care of ourselves first.
Time for Back to Basics.
Very useful article tough economic times call for bold measures and opportunities that reflect the market conditions. Very True and Thanks for sharing
The key to surviving in this economy is good customer service. If you treat the clients like you want to be treated, then you can’t fail. So many compaines these days dont even bother to answer their phones. They don’t show up on time and they just don’t care. Set your self above the competition by out servicing, and over servicing. Set the bar high and don’t accept any less-not from yourself, and not from your employees.
Nice blog, ….revenue and grow your business.But you have to have a strategy for doing so.And the strategy often means looking at your business,your……
Good tips. As an employee of a very small company, I do feel secure in my job because we have kept our heads on straight and stayed smart.
Very useful article tough economic times call for bold measures and opportunities that reflect the market conditions. Very True and Thanks for sharing There are no other places that you can come face to face with so many decision makers.
Having perspective is essential in maintaining a business. Media can always distort what is really happening, but that’s what the customers see. To survive, you have to adapt to meet them in an area where you are credible and relevant.
I have seen the decline with some of them, but also the rise recently in attendance. I think smaller companies began to take advantage of trade shows during the last year, when some of the larger companies decided they were not exhibiting.
I’ve felt that the roots – the grass roots of the economy are healthy since the news got bad. Glad someone else is talking about it too.
Very informative article. I am trying to use the economy to find business as I just started my Long Beach CPA firm. My initial thought was to offer reduced rates and try to steal business. Not sure which way to go.
Having perspective is essential in maintaining a business
There’s not doubt that times are touch for a lot of people right now. Unemployment rates are absolutely soaring.
Many people have lost their homes. Businesses that are going to survive must adapt to the new marketplace.
Media can always distort what is really happening, but that’s what the customers see. To survive, you have to adapt to meet them in an area where you are credible and relevant.
Very informative article. I am trying to use the economy to find business as I just started my Long Beach CPA firm. My initial thought was to offer reduced rates and try to steal business. Not sure which way to go.
Hi Dawud,
You really hit some important notes. We really appreciate you bringing the light to the economic discussion and look forward to hearing more from you.
Thanks for the kinds words. Remember, if there’s a real crisis it’s always best to be up front!
well Having perspective is essential in maintaining a business. Media can always distort what is really happening, but that’s what the customers see. To survive, you have to adapt to meet them in an area where you are credible and relevant.
You have given some nice tips in this article. Keep up the good work. Even I agree that during the economic downturn, we have some excellent opportunities. We have to look for them.
I try to look and see where everyone else is going…if you can go the opposite way then you can really do well for yourself.
Good tips. As an employee of a very small company, I do feel secure in my job because we have kept our heads on straight and stayed smart.
Wonderful points and advise here. It really is a big help especially to those businesses who are having a hard time lately. Very inspiring and you are doing an awesome job here. Thank you very much for those great words. More success!
Lets just accept the fact that not all time our economy will be great, not all the time the economy is balance. Lets always accept the reality that nothing is permanent in this world including the economy.
I would have to disagree on some levels. The US is still, by FAR the best country in the world, both socially and economically speaking. Our economy has hit a rough spot, no question…but with some solid economic policies in place, promoting growth, we will bounce back quicker than you can imagine. Sometimes, during the storm, it feels like it will never end…
Although media i always broaden the news, but this is the source to get the information, So its better to listen about every news but leave the part which has broaden. This help us to make our future bright in investment,
During economic crisis, people tend to buy two things… they either go for the lowest price or the best quality.
Making sure that I got quality products would ensure survival of my business.
Despite of economic crisis one should remain positive and look ahead, I do agree that nowadays we are facing economic crisis here in US but instead of getting panic, efforts are required. If one is not getting job do not spoil too much time in searching, just create it.
Recession is a time for small business owners to earn some handful money and grow their business. You said it right that owners need to be very careful and should not be panic about recession. Effective steps need to be taken to avoid trouble in future.
I like it when you said “As an independent business owner, your job is secure if you make it that way.” That is so true. It is up to you to make it that way. Work hard and smart! My advice is to have a plan of how your going to work. I work hard for 2 hours a day. An when I mean hard I get more than I bet a lot of people do in your average workday. Just because you have a good product doesnt mean youll have a good business. It is up to you!
Some interesting comments going on here. I truly understand what impact these economic times are having on all of us, so I have made adjustments to my prices, and its actually benefiting me and my clients, they now get things a lot cheaper, and i’m getting more business because of this. I think if we all punch through, and create different opportunities, we can all survive this.
I have read and noted all advice you have mention because its very helpful. I own a small business firm and easily get disturbed through recession or slight sloop in economic. I have understand one thing throught reading your post that we need to tackle problem smartly to avoid any problem in later. Thanks for the post.
Jeff very good point. Offering good products is one side of the coin. I cut off all unnecessary expenses. After I’ve reviewed my bills I could not believe how many silly expenses I had.
I agree with lamar,this three things are needeed to be in place for success in this economic downturn period like caring, connecting,good design.These are one of the most important way to promote traffic without Google.
What is really interesting here is the responses have been flowing for over three years…economic downturn was more like an economic cliff dive. Must always be postioned to survive and even thrive in not just a downturn adjustment but when the ecomony struggles for long periods. When is the economic upturn? Are we ready for that?
Great info, thanks!
I was wondering if you could do a post on how to evaluate your market, I’d find that very useful!
Good ideas,
In tough times you should really get to know and understand both your customers and who your target clients want and need.
Sometimes it is budgets, other times it is know what to spend your money and staying online (assuming ofcourse you are a web based business).
History has shown that some of the best ideas, and companies of the future are those that are forged during the troubles and become the future great sucesses.
Great threads Dawud keep it up.
Personally, I make sure that I save every penny I have. I plant my own vegetables, I repair my broken things on my own. There are other things.
Economy is hit world wide, my wife runs a small business in Denmark, and we have the gobal finas crisis parked in the back yard. There is only one thing to do, and that is keep fighting and getting better.
Because my primary business is computer repair I have noticed a slight increase in business during the tough times. I put this down to the fact in the past people threw things out and got a new one wheras now they are more likely to get an item repaire then the more expensive option. Thanks for the share.
I second you that for a new economy to rise another one has to die. This is what I see happening in America right now.
However I feel that the core characteristic any serious businessman or woman should possess in an economic meltdown is focus. Focus on your business 100%. Don’t put your eye off the price.
Businesses need additionally that their accounts are becoming compensated, much like large businesses.
And prior to having the ability to bill they have to produce prospects, to be modified into clients.
Smaller is not a lot easier, it’s really a little bit various.
Small savings today will help you a lot in deed so think twice before spending a penny
Great advice. I have from time to time in the last 3-4 years let the negative news influence my spending and how I do business. Fortunately, I quickly realized my mistake and that I have to stick to my plan. .
I live in Denmark, and I think we have lucky, because our crisis situation is minimal compared to USA.
Everybody talked about a lot from 2007-2010, and the newspapers still uses it as a buzzword. But overall we er lucky, and business is good.
i got to emphasize that sometimes unorthodox (but legal) methods are what make the difference in trying times.
I run an online business and I’ve seen nothing but a RISE in business. I think that is one of the fantastic things about having a global customer base.
I have a great friend that has been hit hard in his local coffee shop, though…
People shouldn’t buy into the scare tactics they see in the media. With the state of the economy today there is still plenty of room for success if you play your cards right. Dawud is right about not taking risks that can get you into trouble financially because it’s more difficult to get loans to bail you out of a jam. There are, however, plenty of opportunities, especially in the real estate market because of the unusually low real estate prices. The economy will rebound eventually and when it does, property values will rise and if you bought some when prices hit rock bottom, you’ll be in a position to cash in.
Absolutely, contrarian thinking is your best bet in times of trouble!
In times of plenty, you barely even need to think…
The key to surviving in this economy is good customer service. If you treat the clients like you want to be treated, then you can?t fail. So many compaines these days dont even bother to answer their phones. They don?t show up on time and they just don?t care. Set your self above the competition by out servicing, and over servicing. Set the bar high and don?t accept any less-not from yourself, and not from your employees.
Even though we are now facing an economic shift, there’s still a good chance for us to recover if only we will do the right thing.
U.S economy is in far much better position then Asian nations, but I agree with you on most of the points.
Financial backup will always be helpful in the critical conditions so be active in finding the alternative for your income until you have the savings in your bank accounts.
Remember there is always a way even in negative situations so find your way to be happy again.
I personally know many peoples who lost their hi-profile job and tried again and got more powerful job.
Definitely agree with current economic scenario as it has impacted a lot all nations across the world. Need to do small savings and wise spending for sure.
It is certainly counter intuitive but a hard fact that when times are tough on a macro level – the smart investor/entrepreneur will source opportunities others are too scared/conservative by nature to address.
The state of economy influences how much bidders are willing to bid on Adsense. The cost per click has gone down since the economic climate changed for the worse.
Great points on the downturn. This really can be opportunity and not turmoil. Companies will redefine themselves, rebuild and come out of this stronger than they previously were.
As I look at how much is being spent on the political campaigns (both sides), and how full the parking lots are of some of the nicest restaurants, I realize that there is indeed money out there. This is a great time to be a small business owner.
You shouldn’t take too much risks. Be bold but be well informed to make profits. Just being bold will let you to downfall.
I promise myself not to be affected by the economic situation here in my country but it can’t be help. I’m still affected big time. Guess I need to work harder then.
Thanks Dawud for your encouraging words. The global economic situation as a whole looks bleak and it is during these times that only the toughest survive. It is a great opportunity to re-invent ourselves and grow stronger.
A positive outlook and a smart plan of action always pulls anyone through tough times. So avoid the negative.
On the principle of taking risks. I think there are risks and there are risks. I would always suggest trying to take calculated risks where you can assess what the probable outcome of each course of action might be.
Those are different to people ‘throwing’ money at ideas and wondering why they didn’t work.
I would suggest spending time and focusing on ideas on pen and paper prior to taking big bold decisions, at least on paper you just need to erase something and rewrite; in real life it is not always quite so easy.
So the old adage: Measure twice and cut once.
It’s more advisable to focus on your own business than to have negative forces affect you. You’re right here, better turn off your TV and do what you have to do. Dwelling on the negative will just bring you nowhere. Thanks for the advice.
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It is very true that you should not get caught up in the hype which unfortunately too many people do. Its simply an affect this sort of news have on us. We hear everything on the news, talk to friends and relatives and simply get scared of economical downturn. Its never spoken about the good things that comes with it and the opportunities there are.
Hope some more people read this article.
Tim
Well in my opinion The global economic situation as a whole looks bleak and it is during these times that only the toughest survive. It is a great opportunity to re-invent ourselves and grow stronger.great article i liked it reading thanks keep up the good work….
Great article – sad to say the UK media are pushing out the same downbeat messages. Don’t let them deter -change means opportunity – take it….
I run a small business, and I can tell you it’s definately had an impact on our bottom line. The difficulty is trying not to let the negativity in the industry affect your staff, particulalry if you have to let staff go.
Innovation is the key, and be ready to do jobs that you might never thought you’d do. We see a lot of people renting out their vacation homes. They bought them thinking they’d be the only one using them, and once the real estate bubble burst, many owners were faced with hard choices. A lot of them chose to market their properties as vacation rentals and it’s been a big success. Other savvy small business people set up property management companies to manage the properties. All of it’s great stuff–people being resourceful and making the best of a bad situation.
Great article ? sad to say the UK media are pushing out the same downbeat messages
Many people are going to benefit from the economic situation at the moment but it depends what sector your business is in. The internet is thankfully one of the few places that is doing quite well in out of this mess. I don?t think we have quite seen the worst of it yet though. I read today that global job losses may hit 51 million. : (
Thanks for the post…. people forget that hard work pays off and if you put your mind to it you can accomplish your goals. Also ignoring outside influences is good but it’s also smart to be aware of what’s going on in the outside world and not ignore it completely. Thank you.
As Josh said…avoid issues you have no control over. Good advice there for sure.
I don’t think I can agree at all with your assessment that small businesses isn’t as affected as large corporations. This assertion is laughable. I don’t know where to start to describe how much more a small business is impacted by this economy than a large. First off we can’t get consumers lending easily, we don’t know what tax rates will be next year which influences our ability to hire far more than a corporation, consumer spending is down and we don’t have the luxury of dumping thousands of employees at a time.
The representation of a economic times as it appears in this blogs has provided a new wind of fresh air in the matter. I think that you were right on with this article. Another good post Dawud.