Right now is what most businessmen and economists would call “crunch time”. In all seriousness, there are thousands of businesses that are going under, or are on the edge of going under, due to this massive financial meltdown we are going through. Some believe this entire meltdown is just a big hoax, and something made up by the media, but believe me, there are hundreds of businesses, both online and offline, that are facing an unprecendented challenge. From a company that was once the largest corporation in history (General Motors), to the Mom-and-Pop store down the street from your house, we all are affected. That’s also why we all need to fight back against this recession!
You’re not safe from this economy in nearly any industry, save for a few. While some people may see their revenues and income climb, most will see them dip. In times like this, you shouldn’t sit on the sidelines and wait for the government to fix the problem for you. This is the perfect time for you to take this economy by the horns, and to expand your business, and really start working hard to move ahead of your competitors. If you are able to post even a few percent growth in a market like this, you will do extremely well when the economy picks up, and will already be a step ahead of your competition.
Cut Prices
The most common way that businessmen will try and compete in an economy like this is by lowering prices on their products and services. That’s because this method works, and that too for a very simple reason. In a recession, consumers want to save every single penny they can, and they are always on the lookout for any businesses that will let them do this. Take a look around on any advertising mediums these days. Nearly every advertiser is offering consumers with reduced prices on their products, and touting the savings they provide over their competitors.
This shouldn’t be all that hard, since your business is also a consumer of products. You get stuff for cheaper, so you should pass on the savings. It may seem enticing to pocket the savings and keep them to yourself, but believe me and all the economists when we say that you will grow much faster and make much more money if you pass these on to consumers at this time.
Provide More Value
The second way you continue to make money and prosper during this recession is by providing more value for what the same price as before. While some may argue that this is the same as cost cutting, I believe different. When you’re cutting costs, you are actually reducing the amount a customer pays for your products or services. When you’re adding value, however, you’re giving them more for the same price, and therefore catering to the market that can afford your products, but is still looking to stretch their money further.
Once again, this is essential to keeping a business profitable during a recession because you need to be able to adapt your business to your customer’s mindset, and therefore be able to give them what they want: more stuff for the same amount of money. Just make sure you don’t promise away too much, because the economy is bound to pick up at some point, and customers take price increases way differently than they do decreases 
Cater to New Markets
The final way you can fight back against this recession is by moving your markets to more fertile grounds. So if you used to target the lower class as your primary customers, you may want to move your business up a notch by targeting the comparatively well-off middle class. Once again, you must continously be able to adapt to changing markets, and if there is demand for your products in other markets, don’t be afraid to jump onto them. The quote that fits perfectly here would be to “Follow the Money” and to take your business to where the customers are.
The worst excuse for not using this weapon in your recession fighting arsenal is because there are no markets left. It doesn’t matter if you have the worst economy in the world, there will be always be a market for your product. If you were able to sell your wares during the boom, rest assured, the majority of people will still want to buy your goods in a recession. Find those people, and instead of stressing after the ones you lost, focus on selling to them.
If you take a look at the 3 ways I explain, you’ll notice that each of them is targeted at each class of soceity. Whether we like it or not, our soceity, economy, and businesses are very much divided by class, and therefore we need to tune our strategies to the same note. Cutting prices and making your products more affordable caters to the lower class, which are the hardest hit in a downturn. Adding more value to your existing prices and products is for the middle class, who still hold jobs, but are nevertheless concerned about their finances. Catering to new markets is made for the upper class of citizens, those who exist, but require that they be approached for sales, rather then them approaching you.
-
There is not one recession in the world that you can’t whether. As long as the human civilization exists, there will always be a demand for goods. If you’re willing to fill that gap, then you’re the next great businessman. If you admit defeat, there’s always someone to take your place. I know it sounds harsh, but that’s the truth.
Check out the error in the image below. The next great thing was the average amount of time people spent on my site, which was a disappointing 23 hours, 59 minutes, and 59 seconds. Am I honestly that boring, that you have to leave my site that early. The final statistic was my % of new visits, which clocked in at a fairly impressive -5%. Funny, it seems like the newbies are finding me at last after months of attempts.
