CleverStart

With the downturn in our economy, credit markets, and financial markets, many small business owners and entrepreneurs are wondering what they should do.  I keep up to date with the state of the markets and the economy, monitoring my portfolio hourly and trying to predict how the economy and the passed bailout plan will impact our business at Clever Start.  Will clients and entrepreneurs shrink down into a hole and hoard their money until things get better?  is it a good time to be in business?  is the world coming to an end?  i fell into the common gloom and doom trap that many people in our situation fall into, thinking we’re all in trouble.  Then, suddenly, a light bulb went on in my head, and i realized that, for the first time in my life, i was WRONG!  yes, it does happen, don’t tell my wife that i admitted this publicly. 

what did i realize and what should you as a small business owner and/or entrepreneurial spirit realize?  that now is a GREAT time to be a small business owner, whether you are currently running a small business or thinking about launching a new business.  Owning your own company gives you the ability to control your own destiny, as well as the opportunity to create a recession proof business that will last through todays down cycle, and all the future cycles that we will go through in the future. 

The opportunities are vast in today’s world.  Others are downsizing, cutting spending, and trying to hoard their cash for the brighter "tomorrow".  what does that mean to you?  that now is a great time to reach customers/clients to gain market share and "expand" your client base while others are just thanking their lucky stars for the clients they do have.  you may or may not get a rush of new business, but by showing that you are not scared of today’s economic climate, you are establishing yourself in the minds of your potential clients as someone who is there through thick and thin.  As the economy turns around, every contact you made RIGHT NOW is going to remember who the company was that was still out there smiling and optimistically trying to grow their business.  These people will remember and they will come to you whether it’s immediate or in the short term future, once they personally feel more confident in the economy.  Why would they not?  i am not an expert, but i don’t think they’ll call the competition who was closing their doors and who displayed fear in the face of adversity. 

Opportunities during a downturn include:  the chance to control your own destiny, create a recession proof business, establish your name and your company as a leader in up times and down times both, winning new business by being proactive instead of reactive in the market..

However, let’s not ignore the obvious.  Credit is tighter than it ever was, risks are high, and people aren’t spending as much.  This being said, it means you must be careful in how you move forward. 

-avoid unnecessary costs by evaluating where you spend your money and what you spend it on.  In our business, we focus on capturing clients who are launching a new business and presenting them ideas on how to keep their web development for their website or custom application low.  By keeping their startup costs down, they are giving themselves the financial buffer they need to be able to focus on sales and marketing and any further down turn in the economy. 

-know your targets, and focus on providing a real value:  don’t kid yourself and think that you can be "just as good as the next guy" and win new business in a down market.  you have to really provide true value to clients.  People are still paying for things they need.  the flow of money has not ceased all together, so your opportunity is capturing these dollars by providing real value.  being an entrepreneur, you have the advantages of being small and nimble.  "real value" has many meanings, better customer service, better pricing, better terms, more services and more bang for their buck, you name it. 

-focus on your current clients:  it is easier to keep a client than it is to get new clients, that goes without saying.  while times are tough in the economy, make sure every single client knows that you appreciate their business.  whether they are spending money with you or not, make sure that they know you are grateful to have them and that you value their business whether or not they are buying anything from you today or not.  Go the extra mile to ensure that they will stay clients.  if you are launching your business and don’t have clients, this still applies to you.  you are hopefully launching your business with a network of trusted advisers, potential clients, mentors, etc…reach out to these people to keep your networks strong.  they are going to be the backbone of your company when you launch.  they will help you make strategic decisions, and will help you get your foot in the door with potential new business.  let these people know you care and don’t neglect them, this will take you a long way in launching your company in good times or bad. 

Invest wisely, control your destiny, and take advantage of the opportunities that exist in todays economy.  Don’t let the doom and gloom of the news dissuade you from achieving your goals.  By working smarter and more efficiently, you can achieve extraordinary results that will fuel your businesses growth for both the immediate and long term future.  Good luck !