Posted By Robin on February 11, 2009
Did you hear that there was a recession going on? They are talking about it on all of the newscasts and at the coffee shops. I’ve watched a little of it. It’s fairly disturbing news. Although I’ve worked through a few recessions, this one doesn’t feel like any of the previous ones.
Growing up in the city where General Motors was born, recessions meant layoffs and the auto workers got a little time off because car sales were slow. It wasn’t really a bad thing for the local economy. With unionized sub-pay and unemployment checks the workers retained about 85% of their income so there was still money to be spent…and they had time to spend it!
This bode well for me in the advertising business because my job was to help my clients promote their businesses to people who had the money to spend. Although the sales at some businesses (like car dealers) might be down, other businesses would be up — like the RV business because people had access to money and time to travel. The pool and patio business is another example. Who doesn’t want to enjoy the great outdoors when you live in a place with summers as beautiful as Michigan? Everyone gets hungry or sick and no one is going to do without food or medical attention. The recessions of the past spelled opportunity for me and for the gutsy business owners who had the savvy and tenacity to market and promote themselves.
We used to have a saying here in Michigan: When the car business catches a cold, the US economy gets sick. We’ve always been the first ones to slide in to the recession and the rest of the country followed soon afterward.
Today’s recession is very different. Job losses here in Michigan aren’t layoffs, but the permanet elimination of thousands of well-paying white-collar and manufacturing jobs. Much of the country doesn’t feel a loyalty toward its American manufacturers so our American car companies caught a bad case of pneumonia. The country is now plagued by the virus of recession while our thought-less leaders run around trumpeting how they are going to save us with a new spending plan. Now, I’m all for a little retail therapy but I haven’t seen or heard anything that instills confidence in the future.
So what is business to do about the recession? Choose not to participate.
This isn’t about sticking our collective heads in the sand and ignoring what is going on. It’s about being proactive instead of reactive to the current situation.
Dale Carnegie was a great American icon who taught us a great deal about communication and leadership. He offered a short formula on how to conquer worry. By the time the economists confirm that we are in a recession, we’ve witnessed the slowing growth of our business and worried about our decreasing paychecks. It’s really no surprise that our collective worrying spins us all into a full-blown recession.
To avoid participating in the recession we must begin to live in what Carnegie called ”day-tight compartments”. We can’t change the past and (apparently) most of us cannot predict the future. (When was it ever a sound business model to loan people money to buy something they could not afford and had no proof they could pay for it? You don’t run your business that way, do you?) Turn off the never-ending stream of bad news blathering from the talking heads. It’s still true that if it bleeds it leads and we’ve all seen enough all ready. Avoid negative conversations with toxic people. If we aren’t part of the solution, we are a part of the problem.
Prepare for the worst; reduce expenses as necessary and eliminate waste in business and at home. Evaluate what is and what isn’t working. Finally, imagine the worst possible scenario that could possibly happen to you, your family and your business. Paint the very worst picture you can.
Now, accept it. The worst could happen. It might be painful but you probably won’t die from it. Accept that. Then walk away from it and don’t look back.
Now for my favorite part — improve upon it. What can you do today that will put your job or your business on the track to success? What strategies and initiatives can you implement to take advantage of the current situation?
In every crisis there are opportunities. When life gives us lemons, we have no choice but to make lemonade. What can you do with what you have faced with the trends and counter-trends that are currently taking place?
This is the most important time in a business cycle to focus on your sales and marketing. Even with 15% unemployment, 85% of the people are working!
Focus on marketing. Invest in your sales people through training. Develop an advertising plan that promotes your unique product or service in a way that demonstrates its “value” to your customers. Invest in a thoughtful, well-organized marketing strategy that positions your company for success beyond the recession. History shows us that those who advertise and market themselves through a recession will maintain and even increase their market share in the three years following a recession.
So the next time you hear someone mention the recession, what will you do? Exit the conversation and let everyone know that you’ve decided not to participate and join me in planning your next successful venture.
There is more important work to be done.
Category: Business Today |
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Tags: advertising during a recession, conquer worry, overcoming worry, planning for success, recession planning, retail therapy
A couple of months ago I visited my good friend, The Chiropractor, who while aligning my out-of-whack neck, shoulders and back, asked how my business was going. I told him that my business had stopped; in fact, I had stopped working. Frankly I was surprised to hear my words out loud. Though I’d been at my desk and my phone daily, I hadn’t been honest with myself about my status. 
Well, it happened. That sweet, sweet child of mine left the nest. 
Entrepreneurs are the travelers of the road less taken and in the passionate pursuit of their dreams, they rarely get a “day off”. As the owner of and investor in my own company, my work deadlines rarely take a holiday. Planning, project development, sales and marketing, cash flow, personnel, supplies…there’s always something to think about.