Recession-Proof Business Strategies

Things are tough out there. The dollar is weak compared to other currencies. The housing and financial markets are near total collapse. People are being laid off left and right. People don’t have the money they once did to buy goods and services, including yours. Or do they? This month, I’d like to discuss some tactics you can use to recession proof your business. Create Ancillary Services Every type of business has some kind of additional service they can add which enhances their primary offering. A dry cleaner could offer tux rental or seamstress services. A copywriter can offer coaching, consulting, or copy critiquing. Maybe you can come up with something similar for your business. Create a Passive Income StreamI’m a big believer in this one. Everyone, regardless of their primary business, should have at least one passive income stream that makes money for them whether they are working or not. And thanks to the Internet, this is now easier than ever. You can turn your business or hobby into an e-book or other info product and sell it for big money. What do you like to do? What are you good at? Chances are, there are ton of people out there who will pay good money to know what you know. Help them and yourself by sharing your knowledge with the world. It doesn’t even have to be related to your primary business! Enter Another Market If there’s one thing I’ve learned from writing copy for financial and wealth publishers like Contrarian Profits and Early to Rise, it’s that no matter how bad things get, there will always be people so wealthy they’ll never feel the pinch. And they are still spending good money on things they need and want. If you can provide one of these things, you’ll always have a target market eager and willing to pay what you ask when things go bad elsewhere. So what kind of products and services am I talking about? High-end luxury items like boats, cars, watches and jewelry, as well as products and services that help them make more money or keep the money they already have safe are just a couple of ideas. Just think about what groups still have money no matter what the economy is doing, and figure out what they want. Reach Out to Past CustomersThere is one group of people who are almost guaranteed to buy from you, and yet most business owners never reach out to them. Who are they? Why, your past customers of course! It’s always easier and less expensive to contact your previous customers and trying to find new ones. So if you have a list of satisfied customers who have bought from you before, reach out to them! Offer them a coupon or a special deal, or create a brand new product you know they’d love and offer it to them. Speed Up Your Payment Cycle Waiting around for a check from slow-paying clients can really be a drag, especially during a slow period or recession. But there are a few things you can do about it. Give Your Client Payment Options—Give your clients a choice to pay all or half your fee up front. You’d be surprised how many will choose to pay you everything before you start work, and a big wad of cash in your bank account feels great. Get At Least 50 percent Up Front—In my line of work, this is essential, but it’s a must for any service-based business. This not only protects you by getting you _some_ money in case you never see the rest, it’s also a good way to weed out any potentially bad apples. If someone balks or has trouble coming up with half your fee, run as fast as you can away from this prospect. Get Serious About Non-Payers—No one likes to be the bad guy demanding money from people, but sometimes it has to be done. When you get that check for half, photocopy it. That way you’ll have their address and bank routing info. And don’t be shy about sending reminder notices. After all, people get busy and sometimes forget. Besides, simply sending a duplicate invoice with ‘2nd Notice’ printed on it in a bold red, sans serif font can work wonders without things getting ugly. Change Your Mindset I’ve learned that how we think about things is often as important as the actions we take, and our thoughts about the recession are no different. It’s easy to watch the news and read the paper and get sucked in by all the fear and desperation. But remember, the media is simply using the oldest copywriting rule in the book: fear sells. They know that if they keep people scared, they’ll stay glued to the boob tube. They’ll believe what they hear. And they will attract what they are thinking about. So instead of thinking about fear and lack and want and misery, think about this. Out of all the sob stories of people scrabbling to get by, how many of these guys were in dire straits before the alleged recession? You should also realize that a recession is a natural part of the economy. It clears out inventory, takes care of bad business decisions (Freddie Mac, Fannie Mae, and Lehman Brothers, anyone?) and sends money away from areas that were getting too much attention (real estate) to areas that weren’t getting enough attention (scrap metal and raw materials). It can’t be postponed, lessened, or turned around by the government pumping in money. And it has absolutely nothing to do with you and your business. Say to yourself, “I refuse to participate in this recession,” and then don’t. Don’t watch the news or read the doom and gloom financial stories in the papers. I’m not suggesting that you stick your head in the sand, either. Yes, things are bad, and depending on your business, the economy can have an effect on you. But instead of focusing on what you don’t have, think of ways for you to get what you need. Not enough money? How can you make more? Not enough clients? How can you find some? Get out of the victim mentality, and start thinking like the winner I know you are. 2008-11-01T19:44:32Z

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recession-proof-business-strategies

2008-11-05T11:09:36Z

Times are tough, but your small business doesn't have to struggle along with the rest of the country. Here are some recession-busting tips that will help you weather the storm, and even thrive in the current economy.

Recession-Proof Business Strategies

2009-02-24T09:46:55Z