Small Business and Recession - Can The Little Guy Survive?
Our country is mired in a deep recession right now, and as the news plays clip after clip of big businesses struggling and looking for bailouts, one can't help but wonder - if the big businesses are failing, do entrepreneurs and small businesses stand a chance? The answer may surprise you...
Owning a small business isn't easy. Even when your country isn't in a recession, research has shown that 62.8% of small business fail within the first few years. Tack on a recession and decreased consumer spending and I'm sure that number rises even more. But does the recession spell doom for all small businesses, or do they actually have a better chance of surviving than the corporate giants?
The answer is really dependent on the small business owner, or the entrepreneur. If he or she continues to do business the same old way, marketing to the same people with the same advertising and the same products, then yes, small business is doomed. But the small business owner that can shift his marketing/advertising strategy as needed and gives his customers only the products they need - that small business owner will have no shortage of sales and profits rolling in.
The key to understanding why requires that you first understand what happens in a recession. A recession doesn't mean consumers stop spending money, it simply means they stop spending money foolishly. They don't rush out to buy something because they want it anymore, they only buy the things they need. So it is the job of a small business owner or entrepreneur to get inside their customer's head, find out what they need, and then give it to them. A happy customer is a customer that keeps coming back.
Surveying your customers becomes 100 times more important during a recession, both before the sale and after. Your customers will stick by your side if they feel you understand their needs, because research has shown that even during a recession consumers still exhibit a strong brand loyalty. Give your customers the products they are looking for, with the guarantees that make them trust you. Take their feedback and show them that it matters, both positive and negative - and your company/business will flourish, recession or not.
To be successful in small business, you have to stand out and that just doesn't mean in your marketing or advertising campaigns. Stand out by offering the best guarantee, the best value, the best customer service. Add a 10 year guarantee to your product - even if it's a pair of jeans or a basket weaving class. Go big! Sure some people will use it to try to scam you, but they will be few and far between compared to the amount of sales your guarantee will bring in. Don't think you can offer a guarantee? Then find a way to offer the most VALUE for your product. Make your product irresistible to your customers because they get so much for their dollar it's just foolish to pass it up.
Surviving a recession takes guts, determination, and hard work. Succeeding in one takes an out of the box approach that most business owners/entrepreneurs won't take. That gives you the competitive advantage, but only if you're crazy enough to take it. Step up to the plate and swing for the fences...
Want to DOUBLE or TRIPLE your profits, even during this recession? Let Paul Lemberg and his new course, Blueprints to Profits, show you how. Paul Lemberg is an internationally renowned business coach who has helped his clients earn over $350 MILLION in extra profits. His course includes over 60 hours of video and dozens of PDF's to walk you through the 5 steps to a successful business. If you're ready to buy, check out this site where there's an AMAZING Blueprints to Profits bonus - a FREE laptop to the first 75 people who buy!
Other websites:
DailyStrength
Owning a small business isn't easy. Even when your country isn't in a recession, research has shown that 62.8% of small business fail within the first few years. Tack on a recession and decreased consumer spending and I'm sure that number rises even more. But does the recession spell doom for all small businesses, or do they actually have a better chance of surviving than the corporate giants?
The answer is really dependent on the small business owner, or the entrepreneur. If he or she continues to do business the same old way, marketing to the same people with the same advertising and the same products, then yes, small business is doomed. But the small business owner that can shift his marketing/advertising strategy as needed and gives his customers only the products they need - that small business owner will have no shortage of sales and profits rolling in.
The key to understanding why requires that you first understand what happens in a recession. A recession doesn't mean consumers stop spending money, it simply means they stop spending money foolishly. They don't rush out to buy something because they want it anymore, they only buy the things they need. So it is the job of a small business owner or entrepreneur to get inside their customer's head, find out what they need, and then give it to them. A happy customer is a customer that keeps coming back.
Surveying your customers becomes 100 times more important during a recession, both before the sale and after. Your customers will stick by your side if they feel you understand their needs, because research has shown that even during a recession consumers still exhibit a strong brand loyalty. Give your customers the products they are looking for, with the guarantees that make them trust you. Take their feedback and show them that it matters, both positive and negative - and your company/business will flourish, recession or not.
To be successful in small business, you have to stand out and that just doesn't mean in your marketing or advertising campaigns. Stand out by offering the best guarantee, the best value, the best customer service. Add a 10 year guarantee to your product - even if it's a pair of jeans or a basket weaving class. Go big! Sure some people will use it to try to scam you, but they will be few and far between compared to the amount of sales your guarantee will bring in. Don't think you can offer a guarantee? Then find a way to offer the most VALUE for your product. Make your product irresistible to your customers because they get so much for their dollar it's just foolish to pass it up.
Surviving a recession takes guts, determination, and hard work. Succeeding in one takes an out of the box approach that most business owners/entrepreneurs won't take. That gives you the competitive advantage, but only if you're crazy enough to take it. Step up to the plate and swing for the fences...
Want to DOUBLE or TRIPLE your profits, even during this recession? Let Paul Lemberg and his new course, Blueprints to Profits, show you how. Paul Lemberg is an internationally renowned business coach who has helped his clients earn over $350 MILLION in extra profits. His course includes over 60 hours of video and dozens of PDF's to walk you through the 5 steps to a successful business. If you're ready to buy, check out this site where there's an AMAZING Blueprints to Profits bonus - a FREE laptop to the first 75 people who buy!
Other websites:
DailyStrength
