Posts Tagged ‘Recession’

Times have been tough and many businesses have been suffering. It is the smartest and most creative business people that can make it through a recession such as the one we are experiencing and THRIVE while doing it. Many times, the first thing that a business will do is cut their marketing budget as a means to save money. This is often a mistake. Instead, business owners need to work on making their marketing plan work more efficiently. You still need customers, right?

Below are 5 ways that you can increase profits for your business even during a recession.

1. Maximize your mailing list (online and offline) – Your current client base is your best source of NEW sales. Make sure that you have contact information for ALL your clients. In a recession, or ANY time for that matter, it is cheaper to stay in contact with your folks via email. Send regular emails to stay in contact with them and let them know you are there for them.

2. Network! – Whether it be your local Chamber of Commerce or some other networking organization, get out there and meet people! New business, potential new clients, anybody! Network and develop strategic business partners as well as potential clients.

3. Reward productive employees – An action that is rewarded is often repeated. If your employees do well, let them know and reward them. Don’t hold back on bonuses or rewards at this time…that is a mistake.

4. Referrals – Sometimes we don’t think as much of this option as we should. A referral from a current customer can turn a cold-call in to a warm lead. Don’t be afraid to ask your customers for referrals.

5. Work deals with local advertisers – In a recession, just about EVERYONE is ready to negotiate. Contact local advertising agencies and see if you can work some deals and chances are, you’ll be able to get some HUGE discounts on advertising on local papers and magazines.

While these are just a few of the ways you can increase your bottom line during a recession, following the 5 tips above can help you during down times and may even put some much needed dollars back into your ailing bank account.

Denise Willow writes for several websites and focuses on Business and Fashion items. Here is one of her websites: [http://www.mylaptopcomputerbags.com] She adds some fashion style on this page: [http://www.mylaptopcomputerbags.com/Funky-Laptop-Bags.html]

Author: Denise Willow
Article Source: EzineArticles.com
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As the US recession comes to an end we will see expansion again, and as our middle class feels more comfortable spending money, they will. As the American consumer spends more money they will import more products and services from abroad. They will also buy more oil from the Middle East, and items from China. This means that the rest of the economies of the world will start hiking back up again. When the US economy is going strong at our GDP is over $17 trillion a year.

The entire world GDP is about $52 trillion a year, but it is almost off 10% due to the global economic crisis. The loss of $10 trillion in trade and GDP is causing nations around the world into near economic collapse. We are lucky to live in the United States and see that we have bottomed out on the recession and that our business cycle is going to be hiking back upwards. Currently, unemployment is still increasing and on the rise, but corporate profits are up and the stock market is starting to move skyward again.

As these corporations make more money they will have no choice but to expand their businesses to have the supply needed to service the demand. This is when everyone goes back to work. Economic comebacks are inevitable, business cycles are in constant flux, and potential business profits are on their way.

Anyone who counts the United States of America down and out is making a severe mistake and anyone that thinks that this recession will go on forever is absolutely and historically wrong. I hope you will please consider this and think about how you will expand your business as things quickly recover.

Lance Winslow is a retired franchisor – Lance Winslow’s Bio. Lance Winslow is formerly the CEO of WashGuys family of franchises for instance one of Lance Winslow’s favorite companies on the team; http://www.windowwashguys.com/links.shtml.

Author: Lance Winslow
Article Source: EzineArticles.com

Can you believe that 50% of first year businesses do not make it to the next year? Did you know that 95% of businesses fail within 5 years of being established? It is because of these percentages that lenders and other financial organizations consider many small businesses to be ‘high risk’.

High risk businesses (and even some non-risk businesses) have an extremely difficult time finding and obtaining business credit. So, why are lenders so afraid to lend out funding to start-up and current businesses?

Let’s take a look the real side of small business access to credit….

Uncertain Economy

An uncertain economy has a lot to do with the ability of a small business access to credit. During a recession, or even a falling economy, people are not spending money. Therefore, they are not going to small businesses for materials like they do when the economy is good.

Small businesses are not getting near enough business to stay afloat and lenders are perfectly aware of it. Lenders are skeptical to lend out money in fear of never seeing repayment.

Outstanding Loans And Credit Card Balances

This goes hand in hand with the uncertain economy. More business owners default on a loan during a rough economy. Lenders have hundreds of thousands of dollars in back loans that they are unable to provide more opportunities for small business access to credit.

If they are not paid for the capital they have lent out, they could risk going out of business themselves. This is especially true for private organizations that need the paid interest rates on loans and credit cards to keep them going.

Lending Standards Restrict Small Business Access To Credit

The lending standards that the government places on small business loans and credit cards have a lot to do with small business access to credit. Tighter regulations for small business loans means less and less business owners will qualify for the credit they need to keep their businesses in business.

Stricter regulations will help the lenders keep the money in house, but they will also increase the unemployment rates as small businesses will be going out of business. It is critical that small business access to credit be open or we could see a drastic decrease in the amount of business opportunities available to people.

All of these factors contribute to why lenders are not offering business credit to businesses. Small business access to credit is becoming smaller and smaller and smaller. So, if you are considering starting your own business I want you to understand the ‘Why’ so you feel more confident when you begin your quest to obtain credit for your business.

Hey! It’s not just me whining and crying. This attitude is out there regarding small business credit. I am just letting you know. Here is just one article in The Wall Street Journal – A Credit Crunch That Lingers.

Keep in mind that this type of thinking and this flow of information will discourage a lot of people from seeking small business credit leaving more opportunity for those that do want to succeed and who also realize that it is just a matter of understanding how the credit game works when it comes to getting business credit

Know what to do and how to do it, and ideally before you start to do it, and your chances of success will be much higher

And after all, how can we expect a business to flourish when there is very little small business access to credit? It almost seems as though businesses are being set up just to fail…. BUT!

Remember the more people turned off by all the negative news on the economy is this ‘credit crunch’ the more room left for you to bear down and start or expand your business!

Shawn Casey Understands From Personal Experience The Obstacles You Will Face When It Comes To Getting Small Business Access To Credit. He Also Has A Lot Of Other Free Information Regarding Establishing Business Credit When It Comes To Starting Or Growing Your Own Business. He Wants You To Learn The Credit Game And Then Play It To Win.

Author: Shawn M Casey
Article Source: EzineArticles.com
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How many times have we heard the adage that you must spend money to make money?

That message was repeated in a SuccessfulMeetings.com article posted on September 21, 2009. The article is entitled, “Business Travel Study: Companies That Spend More, Make More.” The study was funded by the National Business Travel Association and found that for every $1 spent on business travel, over $15 could be earned.

The report examined ten years of data, and cautioned that under-spending on travel during a recession could cause companies to lose out on profit. ‘Find some other area with less impressive return-on-investment (ROI) to eliminate,’ the metrics seem to suggest.

Groups planning a benefit auction may wish to consider this point, and apply it to their own event. Cutting some areas of a benefit auction budget will have a more harmful effect than cutting others. Look at the ROI for each section of your budget.

In the past two years, my clients have cut expenses in these areas with no-harm-done:

• Created their own floral arrangements versus using a florist
• Eliminated the auction catalog. (These groups offered it online.)
• Redesigned the auction catalog to get more for less.
• Used a DJ instead of a band.
• One group eliminated some emcee entertainment entirely, mentioning (after we’d worked together for a year) that the auction was entertaining enough without the added cost of entertainment.

Three other line items which can often be reduced include:

• Printing: Can you use electronic Save the Date notices and response cards?
• Postage: Using electronic notices eliminates the need for postage
• Food: Don’t change the quality, but change the meal.

One line item you should not eliminate when you are tightening your fiscal belt is outlaying the cost for a professional benefit auctioneer. The return-on-investment (ROI) is too great.

The ROI when using a professional auctioneer is (conservatively, by my accounts) 25% higher than what an amateur could produce. That means that for every $50,000 an amateur would sell, a professional would sell the same merchandise for $62,500. A difference of $12,500 can’t be overlooked.

ROI is not just measured in dollars, but also in how the event is perceived. A well-run event orchestrated by a professional auctioneer gives the impression that the organization has its act together. Guests can freely donate, knowing their money is well-spent. A poorly-run event is a sign to guests that this is an ill-managed organization which should not be trusted with large donations.

Usually the auctioneer is the one professional working at the event who has ability to encourage donations. The band never stands up to ask for donations, and I’ve yet to see a guest stand up after eating a fabulous meal to say, “This meal was so good, I’m going to donate $5,000 to your non-profit!” It just doesn’t happen.

But an auctioneer can apply subtle pressure to guests to encourage them to give more than they intended. That’s the skill of the auctioneer, and that’s what you pay her or him to do. In some cases, your auctioneer might be the only person asking for money. I know that at some of my auctions, both the Executive Director and the Board President feel uncomfortable reminding attendees that they are there to spend money. By default, I become the organization’s fiscal champion. That’s not a line item you want to cut!

Be smart when looking for ways to trim the budget. Your auctioneer is an investment undertaken to help your organization make more money. Eliminate your auctioneer, and your profits will drop quicker than your expenses.

Sherry Truhlar is an award-winning auctioneer who helps volunteer auctioneer chairpersons confidently plan foolproof benefit auctions. She offers a FREE procurement Item Guide on her website which showcases the best items to sell in benefit auctions. Sign up for the Guide by visiting http://www.RedAppleAuctions.com and read about some of the ~50 organizations Red Apple Auctions helps annually.

Author: Sherry Truhlar
Article Source: EzineArticles.com
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