It’s not the economy, it’s you…

Posted by Jeremy L. Knauff | June 15th, 2009

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For all the cries we hear about how the economy is destroying business these days, there are countless companies that that are not only surviving, but actually thriving and growing.

What’s the difference between the companies that seem to be devastated by the current economic environment and those that are prospering? Unfortunately, there is no single isolated factor, but there are some general trends.

A few years ago, we had a large client in the seafood industry with revenue of over 12 million dollars a year. Eventually, we chose to stop working for him because he felt that he had all the answers and more often than not, refused to take our advice. His revenue began dropping year after year as a result of ignoring our advice.

What did he do wrong? He took the path of least resistance. When business slowed down, he just accepted it and waited for it to pick back up. Aside from cash flow problems this created, this choice also allowed his competitors to begin chipping away at his market share. At first, it was just little chunks here and there, but as time went on, it became giant boulders. To make matters worse he was always on the look out for sales people that would work for less money than his current staff, leading to high turn-over and poor moral. Do you think an unmotivated sales person is going to present your company in the best possible light?

On the other side of the coin, we have a much smaller client in the motivational speaking industry who chose a very different path when she had to tighten her belt. She not only followed our advice, but also looked for every opportunity to create additional exposure. Since she couldn’t afford to market very much, she spoke at events for free and utilized social media to get her name out there, which helped her to land new clients. She also used her downtime to create new products to sell. All the while, she maintained laser-like focus on her target market and added value to every relationship. Her efforts didn’t make her a millionaire overnight, but they did keep her cash flow headed in a positive direction, and more importantly, they allowed her to begin gaining the market share that her competitors were losing. Despite the economy, she is now in a better financial position, has a stronger brand and a more defensible company.

People have been using the economy as an excuse for everything from losing their job, house, partner, or even their cat. They’ve been blaming their company’s poor performance and even their miserable mood on it. The fact of the matter is that economies go up and down. It’s just the nature of things and your only choice is to learn to deal with it.

Come hell or high water, it’s the true entrepreneurs who will ride through this storm and the many more that will come. Why? Pure and simple, it’s all about mindset. Entrepreneurs will do whatever has to be done to reach their goals without taking things personally. Well, without taking things AS personally as others might; we are still humans after all.

You could whine about how bad things are and it might even be true, but what will that do for you? It will waste your time and keep you in a negative mood. It will cause you to expect the worst. More importantly, it will push positive people away and draw negative people in, making your situation worse and sucking you down like a whirlpool. 

Or, you could take an objective look at your situation for opportunities that all the whiners are missing.

Which one seems like a better choice to you?

If you want to thrive through this recession, you need to take some serious action.

Add value at every opportunity. People are looking to cut costs whenever they can, but they are still looking for value. If they buy something, they want to know that it’s going to last; they don’t want to replace it in a few months. This doesn’t just apply to tangible products though. For example, if you run a heating and air conditioning company, you could add a service to your installations where you come out each month to check their system and replace their air filters. The cost to you would be minimal but it will make your company’s offer appear far more substantial. Though your cost might be slightly higher, so is the perceived value.

Work smarter and harder. Be more efficient, but don’t be afraid to put in some extra hours too. Instead of relying on a tattered notepad, use CRM software like ACT or Goldmine to keep track of your contacts. Plan your day and follow your plan. Lean a new skill that helps you to get more done and while you’re at it, stop wasting time with things that aren’t making you money.

Follow up with every lead. When a prospect contacts you, there is already some level of interest. Do not squander that. Your competitors may not be as good as you, but if they get to your prospects before you do, they may have a far better chance of converting them to their own clients. Remember, the problem isn’t just the immediate loss of revenue when a competitor converts a prospect before you do, it’s also the potential revenue that you miss out on from repeat business and/or referrals.

Get outside your comfort zone. Now is the time to try something new. Launch that new product line you’ve been thinking about. Begin public speaking to promote your business. Go after that big client. Do whatever scares you because that’s how you’ll develop new skills, build confidence and learn more about yourself. While you’re at it, don’t be afraid to fail or make mistakes. You will, and that’s ok, it’s how we learn best.

Related posts:

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2. How will the economy affect your business? - There has been a lot of talk about the economy lately. Many pundits feel that it’s a dismal picture and...
3. Go from a dream to starting your own company in 15 minutes - Most sane people don’t get excited about going to work each day. They often find themselves day dreaming about enjoying the freedom...

12 Comments »

12 Responses to “It’s not the economy, it’s you…”

1. Phil Stricker
   June 16th, 2009 at 10:55 am

   All good points. I especially like your point of following up with every lead. How much does every lead cost to obtain?

   [Reply]

2. Kori
   June 17th, 2009 at 8:32 pm

   I don’t usually reply to articles, but I will in this instance because this is a spectacular article :) What an unconventional and accurate point of view!

   [Reply]

3. Mady
   June 28th, 2009 at 12:26 am

   What a great site and informative posts, I will add a backlink & bookmark this site.

   Regards,
   Mady.

   [Reply]

4. Justaperson
   June 28th, 2009 at 11:27 am

   Good stuff, I “Stumbled” you. My DIGG account got messed up but I like Stumbling better anyway.

   [Reply]

5. Apollo
   June 29th, 2009 at 1:10 am

   Very helpful post! Thank you :)

   [Reply]

6. Lucy Partagas
   June 30th, 2009 at 2:36 am

   Easily some of the best writing online. Amazed to see this level of detail. Keep up the good work, and thank you for opening my eyes to a new thing.

   [Reply]

7. Pancha Janya
   June 30th, 2009 at 5:32 am

   Hi, I love your work!

   [Reply]

8. Duval
   June 30th, 2009 at 9:21 am

   Found your blog while browsing Google…great article!

   [Reply]

9. Mitch
   July 6th, 2009 at 11:31 am

   Cool absolutely insightful, thanks for this post!

   [Reply]

10. Survivor
    July 7th, 2009 at 12:13 pm

    Very interesting article, indeed. I loved it so much that I brought a friend’s attention to it.

    [Reply]

11. Maureen
    July 7th, 2009 at 12:23 pm

    Jeremy,

    All very true points – I think this is especially visible in clients who have a strong resistance to Social Media – many clients don’t see the benefit of utilizing a free resource to monitor and promote their business.

    I especially like your air conditioning example – you have to give a little to gain a lot.

    Thanks.

    [Reply]

12. John
    July 19th, 2009 at 11:34 pm

    Very interesting article, indeed.

    [Reply]

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