The media are full of stories about how bad the economy is, and that if we are headed for a recession, if not a depression. All of the talk about a faltering economy has a lot of people nervous. And that nervousness can actually lead to a downturn.
There is one important thing to remember about the economy: Whatever the economic news, it will be good for some people and not so good for others. When interest rates go up it is bad for people who want or need to borrow money, but good for retirees and others who depend on the income from their savings. When the prices of houses go down, it is bad for sellers but good for buyers. When interest rates go down, or house prices go up, just the opposite is true. The news is good for some people and not for others.
Let’s look at what you can do to make the current economy a good one for your business.
If your business is down, it is a great time to refocus. Are you doing what you should be doing? You may be spending a lot of time on tasks with a low return on investment (ROI). Now is the time to determine what your most profitable business segments are and devote your marketing efforts to those activities.
Along the same line, spend wisely. Examine your expenses to see where you can cut unnecessary expenditures. This is a good idea no matter what the economy is like, but we tend to pay more attention when we are worried.
If other businesses are afraid to invest in equipment and materials, you may be able to get deals. Another truism about the economy is that what goes down, must come up. Look at where you can invest to be prepared for the upturn.
Show your customers how you help them get the best value for their money. They are concerned about their businesses or their jobs, so show them how you can help them.
Look for ways to repackage your products and services. If your customers have smaller budgets, you do not have to cut your prices. Instead, repackage in ways they can afford. Bundle and unbundle services so they can get exactly what they need.
Do not stop marketing and advertising. Many businesses cut those expenses first, and that is a huge mistake. Keep getting the word out about your products and services.
Whatever your perspective on the economy, it will be different later. Some segments will be better, others worse. Be prepared to adapt, whatever happens.