911 - Recession Rescue Strategies
Enough already with looking backwards. I remember being so frustrated by the presidential debates because the focus seemed to continue to be in looking backwards and placing blame. Understandably, there is plenty of blame to go around… from Wall Street, to Main Street, to D.C. BUT, we can’t stay there. Seriously, I wonder how we would feel if a fire fighter decided to lecture us about playing with matches rather rescuing us from a burning house?
This week alone, I have heard from two business owners going “under”… literally closing their doors and, of course, blaming the economy. I must say mad money both of these companies started out with overwhelming debt, and neither had shown a month of profit since opening their doors. They were both open BEFORE the “recession” hit… Both invested heavily in traditional marketing… Both inquired about hiring a business coach, but never felt it worth the investment. THIS is the Darwinian-like “thinning of the herd” that we will continue to observe in “tough times”. But you don’t have to be one of those eliminated… So, what can you do NOW to rescue your own business today?
MIND YOUR MINDSET. There is such truth to the old adage, “you are what you THINK”. If you are constantly seeing lack, you will begin to ONLY see lack. Likewise, look for opportunity and begin to see more of it. Many businesses thrive in tough economies. Why not yours?
WHAT OPPORTUNITY? There are many, many opportunities to prosper in a tough economy. However, the number one benefit I have seen is this “thinning of the herd”. In my own industry, two years ago you couldn’t go to Food Lion without meeting an eager, overly-enthusiastic “speaker, coach, and author”. Because the industry is relatively easy to enter, there was immense competition, price wars for coaching, and more “static” to compete with as a professional. NOW, there is much less. The same is true in many industries. As many business owners close up shop, you are better positioned to own a lion’s share of your market. Look around you. When you see someone in your industry close their doors, please do not think it is a “telling sign”. See it, instead, as a newly UN-served pool of customers. Take advantage of the DECLINE in marketing to boost your own marketing efforts.
PLUG YOUR CASH LEAKS. Nothing deals a death blow to a business like a lack of cash. So, plug up those cash leaks. Try everything to keep your cash as long as you can keep it. Negotiate lower rent for commercial space. Negotiate more favorable (longer) terms with vendors. Give customers a pre-pay discount to avoid having to chase money owed to you. Go through your budget. What “customary” fees and bills are you paying that may not be necessary right now?
MAKE SURE THAT EVERY LEAD / PROSPECT IS HANDLED WELL. When you get a lead or a prospect, make sure that it is handled appropriately. Pay attention to everything. Where did the lead come from? What does the prospect WANT? Pay CLOSE attention to all factors that lead to sales, so you can implement them again.
SEEK EXPERT COUNSEL. Many years ago, during the gold rush in the United States, there was a man named R.U. Darby. After weeks of seeking, he was thrilled to find a “shining (gold) ore”. He came back home and borrowed money for the equipment needed to mine the ore. The first car of ore was mined. A few more cars-full, and he would have had enough to pay back his debts. The rest would be exhilarating profit. But, the gold seemed to simply disappear. They could find no more gold. In defeat, they sold their expensive equipment to a junk dealer and went home. The junk dealer consulted a mining engineer who told him that Mr. Darby had simply not known about “fault lines” and that the gold would be found about THREE FEET from where Darby had stopped drilling. You mean just seeking expert counsel could have saved Darby his “lost” fortune? Yep. But instead, the junk dealer took the advice, kept drilling and the gold was found EXACTLY three feet below the fault line…. right where the expert counsel had predicted. History records that, “That junk man took millions of dollars in ore from that mine because he knew enough to seek expert counsel before giving up.” Don’t be a Darby!!
P.S. Mr. Darby learned from his mistake.. refused to take “NO” for an answer again, and later became one of the most successful insurance salesman of his time!
Michelle Pippin - Business Author, Speaker, and Coach - Founder of Women Who WOW! - mailto:michelle@womenwhowow.commichelle@womenwhowow.com - www.womenwhowow.comwww.womenwhowow.com - www.womenwhowow.wordpress.comwww.womenwhowow.wordpress.com - Join Michelle Pippin of Women Who Wow on Facebook
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