To quote Dickens, “It was the best of times, it was the worst of times.”
One day we will all collectively look back on this difficult period in time, and with the perfect clarity and wisdom of 20/20 hindsight, we will either rue missed opportunities or perhaps be in a position to congratulate ourselves on our prescience and persistence. For we must ultimately adopt a mindset that believes that things eventually will get better and that the economic wheels will once again turn freely, or we are tacitly accepting the notion that we are in the onset of a new global “Dark Ages” whose trials and tribulations may be too terrible to contemplate.
In an effort to help other entrepreneurial souls and small business weather these dark times, I am calling attention to what I term “The Five Recession Defying Pillars.” Now truth be told, there are probably a much great number of issues that a business owner can potentially focus on if properly motivated. However, by limiting our discussion to five which I feel are arguably most critical, we’re more likely to successfully implement them. As with the fingers of the hand, alone each “pillar” has its limitations, but when formed into a fist or pressed together to form a “knife edge” surface of the hand, they are much stronger acting in unity.
The Five Recession Defying Pillars include:
- Focusing on Core Competencies
- Building Alliances & Networks
- Mining Niche Market Plays
- Judicious Guerrilla Marketing
- Scrutinizing Cash Flow
Let’s quickly examine the relevance of each of these pillars.
“Focusing on Core Competencies.” There’s a natural tendency when business slows down to lose focus and in the desperate gambit to attract new business, start diluting your offerings by delving into areas where you have little experience, aptitude or passion. This is self-defeating. Figure out what you’re good at, find a hook, and work it rigorously.
“Building Alliances & Networks.” There’s often strength in numbers. Never underestimate the power of referrals, or what active networking can do. But rather than approach it with a “What’s in it for me?” attitude, you must demonstrate how you can bring value to the equation. Or better yet, engage in the “pay it forward” concept of trying to genuinely connect and assist others, because in turn, you will eventually receive the same treatment. If you don’t belong to or attend industry events, or professional/trade/civic organizations, now is a good time to reconsider. There are opportunities in abundance to volunteer time or offer your expertise to develop the “credibility capital” that can pay off financially.
“Mining Niche Market Plays.” While it’s difficult to be a leading player in many vertical markets from a macro-perspective due to the existence of well established and capitalized competitors, there are often under-served or neglected segments within these larger markets that a shrewd and nimble business can capitalize on. Sometimes there can be incredible value in being the “big fish in the small pond.” For one, you don’t get eaten by larger fish.
“Judicious Guerrilla Marketing.” One of the worst mistakes a business can make is to completely abandon or neglect its marketing. We all know that traditional media is getting reamed because of changing consumer preferences and behavior, which means opportunities abound to cut deals if it makes sense to reach your customers through these channels. The proliferation of digital media, which is often far more affordable and provides a more measurable ROI, is a boon if you cherry pick your placements and really understand your prospective customer behavior. Even if you don’t have a budget, establish a regular presence on social networks such as LinkedIn, Facebook and Twitter. If you can offer relevance and value, you’ll eventually attract paying customers.
“Scrutinizing Cash Flow.” If you don’t have money in the bank, you cannot pay your bills. It’s that simple. Having accounts receivable is nice, but remember that your A/R is someone else’s accounts payable, and they may not be in a hurry to part with their cash. Cash, as well as content, is king.
So get out there and don’t give up. This too shall pass…
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