The Upside of the Recession
Yes, an upside.
To the recession.
Really.
First, though, a perspective to see it from.
A recession unleashes an enormous force of change.
It's also part of a natural business cycle, so we always know that one is coming, and after that, there will be more prosperity.
Each time a recession happens, we face the same three choices: have hope, lower our expectations, or create a bypass by creating new value.
Having hope is essentially wishing for a quick economic turnabout while you wait passively, praying that your resources will outlast the wait.
Lowering expectations is resigning yourself to limited opportunities, and giving up on an expanding future.
The fight is seen as already lost, with ambitions and goals permanently downsized.
The bypassers are the innovators, seeing or creating new opportunities and product values.
They take advantage of technology - the digital revolution in the fullest sense - to avoid being turned into a commodity.
This group finds and expands into the upside.
There is a very old quote to hold dear and conduct yourself by in the upside pursuit.
It's from Epicteus's lecture dated 1011AD, "It's not what happens to you, but how you react to it that matters.
" This quote wraps around the core of the upside.
The core, of course, is reacting in a forward way.
So let's take a look at some of the upsides you can take advantage of.
The first place is in your own back yard.
When things are going great, you are busy, money and clients flow in, and you tend not to notice the leaks in the boat or they seem too small to bother with.
Well now you have the time to look after them.
Go through your books and examine your systems.
You will find things that may surprise you.
It could be recurring charges for services that you don't really need.
It might be something that was a convenience for you before, but is not convenient enough anymore.
There could be a supplier that is higher priced than another.
With this last one, before you jump ship, ask your current supplier if they can match the competition.
There could also be some dated equipment that needs to be retired, because running it costs more than new equipment would.
Now is a good time to look into buying things, since loan rates are very low and there are great deals to be had as suppliers move to lower their inventory and make sales.
Be sure that what you are buying is what you really need, and that it will give you a return on your investment.
Next, turn to marketing.
A number of interesting, helpful things are currently in play.
When there's a recession, the marketplace gets quieter.
The knee jerk reaction of most companies is to reduce and in some cases eliminate their marketing.
Into this marketing void, your message will have a wider reach and more staying power in your next client's mind, and in a lot of cases, you might find marketing more affordable.
Marketing vehicles are also having an inventory problem, and theirs is time dated.
You still need to follow your plan, consider your market and their needs, and speak to that.
Our company has been through five of these cycles, and with the arrival of each one, we have ramped up our marketing budgets.
Following this practice, we have emerged into the upswing always better positioned.
Here are some of the things that happen.
In the consideration of saving money, the clients you would not normally be exposed to - those a stratum or two up - will consider buying some services below their normal consumer and social stratum.
The level of value and quality that a client expects to receive is directly proportional to their buying power.
This is their "stratum".
So a client may normally consider the majority of services below their stratum to be beneath their expectations of quality and value, thus not worthy of their attention or money.
The same client will view many services above their stratum as being too expensive or overkill to their needs and requirements.
It does not matter which stratum they are in, there is always stratas above and below them.
The same goes for every business.
But during a recession cycle that changes.
A client will consider strata below their normal service providers.
They do this a) because they feel it is a responsible or social thing to do, b) to find a product normally in a higher strata that has fallen, or c) in the hopes that they will not have to compromise too much.
Regardless, they are exploring stratums below them.
This is your opportunity to gain their attention and confidence.
By increasing your value during this cycle, when the recession passes you will retain the client, and possibly move up a stratum or two yourself.
Because the marketplace is quieter right now, the client is more likely to be able to find you.
With less marketing noise happening, a message requires fewer repetitions (and therefore less cost to you) to achieve the desired impact and needed retention.
When the cycle passes you will have vaulted higher, to top of mind recognition.
Increasing marketing budgets and efforts goes against the grain and will be nerve-racking, but it will work.
It's a perfect time to explore unique marketing exposures since, with your client activity slowing, you have time to consider more unconventional approaches.
Now let's discuss creating new value or products.
Obviously, the longer this economic cycle runs its course, the more irreversible change takes place.
Responding to the recession, lots of entrepreneurs are bringing new products and approaches to the population, which will forever change them.
It's an amazing time to explore how you can change your offerings, values, and approaches.
This is not to suggest that you dump everything you have done for a reinvention.
It's more to look at how you can evolve.
In our age, technology is turned to for salvation in fighting through a recession.
It can totally alter you business model and your approach to things.
Take advantage of this time to explore technological opportunities and see how they can help improve your bottom line, innovate your products and services, and enrich your client relationship approaches.
Remember, though, that building relationships is what will increase your income.
Be wary of using any technology that will commoditize you.
Just because technology makes something possible does not mean that you will always benefit by doing it.
You are not alone in looking for solutions; other businesses are faced with the same challenges.
This makes for the possibility of profitable collaborations.
Business that would not let you in the door before may suddenly recognize great value in a partnership.
It may take a bit of creative thinking, but the opportunity is there to create a powerful win-win-win (that's a win for you, a win for them and a win for both sets of clients).
For example, we have discovered that performance photography is a real crowd pleaser.
I wire up to a wireless headset, get one or two attractive models, have a simple light setup, then I take photos.
As I do so, I am telling bystanders what I am doing and why.
They can see the resulting images on a screen.
With all of this attention, I talk a little about us, too, assisted by nearby staff to answer questions and develop the potential client's attention and interest even further.
We take this on the road to stores doing radio remotes, and dealerships and larger stores are perfect for it as well.
It's quite possible that we will be able to turn this promotional activity into a sellable product later on.
A cool thing about collaborations is that they actually become endorsements of you by the partnering business.
This raises your prestige and standing as a by-product.
This is just the tip of the upside of recessions.
Yes, they can be disastrous, but amazing things always emerge.
They hold the possibilities of stunning growth for you.
No matter how you approach this cycle, it's worth remembering the inscription in the ring that Ben gave an ancient and revered King, "This too shall pass.
"
To the recession.
Really.
First, though, a perspective to see it from.
A recession unleashes an enormous force of change.
It's also part of a natural business cycle, so we always know that one is coming, and after that, there will be more prosperity.
Each time a recession happens, we face the same three choices: have hope, lower our expectations, or create a bypass by creating new value.
Having hope is essentially wishing for a quick economic turnabout while you wait passively, praying that your resources will outlast the wait.
Lowering expectations is resigning yourself to limited opportunities, and giving up on an expanding future.
The fight is seen as already lost, with ambitions and goals permanently downsized.
The bypassers are the innovators, seeing or creating new opportunities and product values.
They take advantage of technology - the digital revolution in the fullest sense - to avoid being turned into a commodity.
This group finds and expands into the upside.
There is a very old quote to hold dear and conduct yourself by in the upside pursuit.
It's from Epicteus's lecture dated 1011AD, "It's not what happens to you, but how you react to it that matters.
" This quote wraps around the core of the upside.
The core, of course, is reacting in a forward way.
So let's take a look at some of the upsides you can take advantage of.
The first place is in your own back yard.
When things are going great, you are busy, money and clients flow in, and you tend not to notice the leaks in the boat or they seem too small to bother with.
Well now you have the time to look after them.
Go through your books and examine your systems.
You will find things that may surprise you.
It could be recurring charges for services that you don't really need.
It might be something that was a convenience for you before, but is not convenient enough anymore.
There could be a supplier that is higher priced than another.
With this last one, before you jump ship, ask your current supplier if they can match the competition.
There could also be some dated equipment that needs to be retired, because running it costs more than new equipment would.
Now is a good time to look into buying things, since loan rates are very low and there are great deals to be had as suppliers move to lower their inventory and make sales.
Be sure that what you are buying is what you really need, and that it will give you a return on your investment.
Next, turn to marketing.
A number of interesting, helpful things are currently in play.
When there's a recession, the marketplace gets quieter.
The knee jerk reaction of most companies is to reduce and in some cases eliminate their marketing.
Into this marketing void, your message will have a wider reach and more staying power in your next client's mind, and in a lot of cases, you might find marketing more affordable.
Marketing vehicles are also having an inventory problem, and theirs is time dated.
You still need to follow your plan, consider your market and their needs, and speak to that.
Our company has been through five of these cycles, and with the arrival of each one, we have ramped up our marketing budgets.
Following this practice, we have emerged into the upswing always better positioned.
Here are some of the things that happen.
In the consideration of saving money, the clients you would not normally be exposed to - those a stratum or two up - will consider buying some services below their normal consumer and social stratum.
The level of value and quality that a client expects to receive is directly proportional to their buying power.
This is their "stratum".
So a client may normally consider the majority of services below their stratum to be beneath their expectations of quality and value, thus not worthy of their attention or money.
The same client will view many services above their stratum as being too expensive or overkill to their needs and requirements.
It does not matter which stratum they are in, there is always stratas above and below them.
The same goes for every business.
But during a recession cycle that changes.
A client will consider strata below their normal service providers.
They do this a) because they feel it is a responsible or social thing to do, b) to find a product normally in a higher strata that has fallen, or c) in the hopes that they will not have to compromise too much.
Regardless, they are exploring stratums below them.
This is your opportunity to gain their attention and confidence.
By increasing your value during this cycle, when the recession passes you will retain the client, and possibly move up a stratum or two yourself.
Because the marketplace is quieter right now, the client is more likely to be able to find you.
With less marketing noise happening, a message requires fewer repetitions (and therefore less cost to you) to achieve the desired impact and needed retention.
When the cycle passes you will have vaulted higher, to top of mind recognition.
Increasing marketing budgets and efforts goes against the grain and will be nerve-racking, but it will work.
It's a perfect time to explore unique marketing exposures since, with your client activity slowing, you have time to consider more unconventional approaches.
Now let's discuss creating new value or products.
Obviously, the longer this economic cycle runs its course, the more irreversible change takes place.
Responding to the recession, lots of entrepreneurs are bringing new products and approaches to the population, which will forever change them.
It's an amazing time to explore how you can change your offerings, values, and approaches.
This is not to suggest that you dump everything you have done for a reinvention.
It's more to look at how you can evolve.
In our age, technology is turned to for salvation in fighting through a recession.
It can totally alter you business model and your approach to things.
Take advantage of this time to explore technological opportunities and see how they can help improve your bottom line, innovate your products and services, and enrich your client relationship approaches.
Remember, though, that building relationships is what will increase your income.
Be wary of using any technology that will commoditize you.
Just because technology makes something possible does not mean that you will always benefit by doing it.
You are not alone in looking for solutions; other businesses are faced with the same challenges.
This makes for the possibility of profitable collaborations.
Business that would not let you in the door before may suddenly recognize great value in a partnership.
It may take a bit of creative thinking, but the opportunity is there to create a powerful win-win-win (that's a win for you, a win for them and a win for both sets of clients).
For example, we have discovered that performance photography is a real crowd pleaser.
I wire up to a wireless headset, get one or two attractive models, have a simple light setup, then I take photos.
As I do so, I am telling bystanders what I am doing and why.
They can see the resulting images on a screen.
With all of this attention, I talk a little about us, too, assisted by nearby staff to answer questions and develop the potential client's attention and interest even further.
We take this on the road to stores doing radio remotes, and dealerships and larger stores are perfect for it as well.
It's quite possible that we will be able to turn this promotional activity into a sellable product later on.
A cool thing about collaborations is that they actually become endorsements of you by the partnering business.
This raises your prestige and standing as a by-product.
This is just the tip of the upside of recessions.
Yes, they can be disastrous, but amazing things always emerge.
They hold the possibilities of stunning growth for you.
No matter how you approach this cycle, it's worth remembering the inscription in the ring that Ben gave an ancient and revered King, "This too shall pass.
"
Source...