Recession Hat Tricks

[Karen Swim]

If you say it enough, does it make it true? We tried hard not to use the "R" word. But as we watched the housing market tank, our neighbors losing their homes and jobs and teary eyed stories on Good Morning America there was just no denying it - the US is in a recession.

While we understand what that means on a personal level, what does it mean for your business? How will it impact your branding efforts?

Well some marketers simply make lemonade out of lemons. We're in a recession, eh? Well let's just spin that into a nice marketing message. So we are treated to Top 10 lists of how to recession proof your business, income, job, family, pets,...well, you get the picture. This is not one of those lists.

Besides being a cool marketing opportunity, recession can actually improve your business. Recession or even the threat of recession can force you to critically examine your business and uncover things you may not have discovered. Below are five simple tips that can help you think through your own recession plans.

1. What are your core values? Companies sometimes drift from these values as they take advantage of market opportunities. As such, your resources may be deployed in areas that are not critical to your business. In a recession, maximize your resources by applying them to what truly differentiates your company and provides a sustainable competitive advantage.
2. Consider outsourcing. Outsourcing is no longer the piecemeal, one off project but more often a strategic business move. Use outsourcing to delegate areas that are not part of your core values or to gain a competitive advantage by hiring talent, resources and knowledge from that don't exist within your organization.
3. Improve your Customer Experience. Critically examine every facet of the customer experience, at every point of contact. Bulletproof customer retention by continuing to find ways to delight the people that keep you in business.
4. Don't stop marketing. Businesses that continue to market in economic downturns, not only survive but gain market share. Of course you should also critically examine your marketing plans to maximize your ROI.
5. Perform a risk analysis. Risk management should be part of your operating procedure in good and bad times. Risk managers and business units should collaboratively examine risk in light of your business objectives.

With a cool head and careful planning you can keep your business on track during the tough times.

Karen D. Swim

[Karen Swim]

Hi Patsy! What a neat business! It does seem that when the economy is challenging people tend to "nest." It makes sense to me that without the distractions of the go-go lifestyle when money is flowing people might yearn for relationships. I hope that you are spinning that upturn in business into additional publicity for yourself.:-) I can think of several really great angles. I am so glad you found me and I really appreciate your words of encouragement. If you ever need a brainstorm partner don't hesitate to reach out. I love helping other business owners!

http://twitter.com/karenswim
E: karen at wordsforhirellc dot com

[Patsy]

I am a small business owner, operating a dating service on the Internet for 10 years. I find that every time there is disaster (911) or changes in the economy that my business prospers. I have made a new personal budget for myself but instead of cutting things out all together I find ways of cutting back. This is what consumers do, they become more picky, cut down on the services that they subscribe to but they never quit. I enjoy reading your blogs Karen. I found you while looking for a web designer through elance.

[Niel Leon]

Agreed, in the modern dynamic world the swings between feast and famine can be very drastic. You need to be prepared to survive the leanest times and the times of glut.

Surviving either / both can be difficult for the small business. I have seen almost and many business drown in success as starve to death during famines.

Niel

[Karen Swim]

@Niel, like you I am fortunately overwhelmed with business but I am a firm believer in planning for the famine when there is a feast. Every business can benefit by having a recession plan.

Karen

[Niel Leon]

If there is a recession, my business is not currently seeing it.

Guess, I am properly focussing on my core capabilities.

Niel