Is the recession affecting your business?
After speaking with a number of business owners today, it seems that each has a different take on the effects of the US recession on his or her business. The cleaning service has seen strong, steady growth. The mortgage broker has seen a 72% decline. The insurance agent has gone untouched by the recession, as has the advertiser. So what's going on here?
Is it really a recession?
Few would argue that the US economy is not in a downturn, or a "contraction." But your industry, or your business, is likely singing a different tune. Either it's really hurting, or it's growing like gangbusters. The economy is readjusting. Where will you end up when it's time for another expansion? Are we seeing the 'survival of the fittest' principle at work?
Recession Resistance
If your business is currently experiencing a downturn, I have good news for you. The spending has not stopped! Americans are still spending plenty of money. So let's get some of that into your hands. There are two steps that you can take to turn your predicament around.
Offer an Alternative
First, you can get creative and find alternative products or services that are still in line with your industry, credentials, or area of specialization. How can you sell your knowledge of your industry instead of your product? Or how can you now sell a product whereas you used to sell a service?
Perhaps you had been manufacturing widgets, but now the market is saturated and/or it's an item that is no longer in demand. Now is a good time to consider opening a widget repair business using your existing customer base. Or perhaps you can market your widget-making expertise to the members of a widget manufacturing association.
Narrow Your Niche
Second, you can be counterintuitive. Instead of trying to reel in more buyers of more products, narrow your niche. Focus on a (more) specific product and/or target market. If you had been selling widgets in a variety of colors, now you can sell widgets with only two specific colors and labeling to attract, for example, a university's stakeholders or professional team's fans. Or you can manufacture only widgets that make a special engine-like sound and sell them to NASCAR enthusiasts.
The key here is ensuring that there is a effective and established conduit between you and a very specific target audience. In these examples, an alumni association or an organized fan club would meet this need. Specialization will naturally cause more business to be directed your way.
You can refuse to participate in a recession. Choose prosperity!
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CALL FOR COMMENTS:
What is YOUR industry or business? How is the US recession impacting it? Be sure to include a link to your business.
