Business Education

Why a Recession Spells O-p-p-o-r-t-u-n-i-t-y for Successful Entrepreneurs

As every savvy business owner knows, their company is not only subject to seasonality in at least some industries, but it can also be positively or negatively impacted by the overall national economic landscape and more particularly, the macroeconomy of their local community. So, there are cycles, or ups and downs, which more or less can be predicted. However, these factors don’t necessarily dictate every aspect of how they operate their businesses during good or bad times. Entrepreneurs still have quite a bit of say and it’s essential to understand that business owners are not totally helpless in uncertain times. The smartest and boldest entrepreneurs know and understand this, which is why they use recessionary periods to their advantage. One of the biggest debates in the business world really centers around individual personalities. In other words, two business owners in the same industry competing for the same consumer dollars might react in two totally different ways. When inflation spikes, interest rates go up, and consumers pull back their spending, one entrepreneur might also decide to pull back and scale down.

This is not the time for inertia and despair or running around like the proverbial scaredy-cat. Instead of dwelling on the negatives as so many others do, realize that their preoccupation gives you a chance to one-up them. In fact, to be really contrarian about it, think of this catastrophe as a gift. The gift of challenges and opportunities. Challenges are what make business so exciting. Now’s the time to look for new, sustainable opportunities to grow your business and make it stronger. —Inc.com

Meanwhile, the other business owner looks at this as an opportunity. Although consumers may be pulling back a bit, it doesn’t mean they can totally go without the goods and services they need. And, seeing that one of his chief competitors has decided to play it safe means there is a serious opportunity to be had for the bold entrepreneur.

How Successful Entrepreneurs Turn a Recession into Opportunity

Unfortunately, as stated above, this really depends on personality or more particularly mindset. Entrepreneurs who play it safe and try to ride out economic downturns will probably survive and even grow when things turn around. But, those people who played it safe might see a competitor grab up more market share because that rival decided to do the opposite. Here are some of the ways savvy business owners can take advantage of a recession:

Increase advertising. The companies who continue to market their businesses aggressively will practically always reap the rewards and gain a return on investment. While others cut back on their advertising, entrepreneurs who are bolder and continue or increase their advertising put themselves in a stronger position in the marketplace.
Buy out competition. This is something that happens regularly in certain professions, for instance, financial advisors. When one individual retires or a firm is winding down its operations, buying a book of business is quite common. Think about doing the same in your industry and how that could benefit your company in the long term.
Streamline operations strategically. It’s not all just about going bigger, it’s also about being smart about how you’re running your business. Take some time to review your logistics and budget to see where you can streamline things to cut expenses while maximizing revenue.

What other suggestions do you have? Please take a moment to share your thoughts and experiences so others can learn from you! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Your Industry Is Dying, But You Can Survive (and Thrive!)

June 19, 2025 No Comments

Industries evolve rapidly, and business owners may face the daunting reality that their skill set—or even their entire industry—is becoming obsolete.

If You’re Hiring Based on Skills, You’re Hiring Wrong — Here’s Why

March 2, 2022 No Comments

There’s an internet meme going around that makes a profound point, “Hire based on attitude, not skills — because you can always teach skills.” And, it backs up some very interesting statistics. For instance, did you know that 85% of a company’s success is due to the team’s attitude, and only 15% is due to individual skills? That’s why when businesses are looking to hire new employees, they should focus on finding individuals with the right attitude, not just those who have the perfect skill set. So, let’s expound a bit as to why. Attitude vs. Skill When it comes to hiring new employees, many businesses focus on finding candidates with the appropriate skills for the job. However, in order to create a successful and productive team, it’s important to also consider attitude. A positive attitude is essential for maintaining a positive work environment and achieving company goals. Is it better to have someone in a team lead role who has a strong work ethic and is all-around positive and can learn the skills or is it better to hire someone based on skills only? What is most important — the skill set or the attitude and growth potential? It depends on the job. There are some jobs where it might make sense to hire for attitude and teach the work itself when it won’t require a major investment of time to do so. There are other jobs where experience and a pre-existing skill set are essential. —Inc.com Therefore, businesses should focus on hiring people who have the right attitude, even if they may not have all the necessary skills. With the right attitude in place, employees can be taught the required skills over time. This makes sense, especially when looking at first-time job seekers in entry-level positions. Those individuals often have little to no skills at all. Those are taught through direct instruction and experience. The Advantages of Hiring Based on Attitude Rather than Skills There is no question that skills are a critical component of any employee’s toolkit. However, research has shown that an individual’s attitude is a stronger predictor of success than their skills. In order to capitalize on this, businesses should consider hiring based on attitude rather than skills due to the following reasons: Longevity. Hiring based on attitude will help you find candidates who are motivated and passionate about their work. These are the employees who will go above and beyond for your company. They will be more engaged in their work, and they will be less likely to leave their positions. Synergy. Hiring based on attitude will help you find candidates who are a good fit for your company culture. This is extremely important, as it can save you time and money in the long run. If a candidate is not a good fit for your company culture, they will likely be unhappy and unproductive in their position. Flexibility. Hiring based on attitude will help you find candidates who are able to adapt to change. When a company hires based on skillset, they may hire someone who has very specific knowledge and experience in their field. But this person might not be able to adapt when things change in the future. What other benefits are gained by hiring based on attitude instead of on skillset? Please take a moment to comment and share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Dunkin’ Donuts just Streamlined Its Menu — Is it Time for You to Do the Same?

January 22, 2018 No Comments

Dunkin’ Donuts just reduced its menu offering by 10 percent. While that doesn’t seem like a big decrease, it actually is. The company is removing afternoon sandwiches and some other items, starting New England, then onto the rest of the country. The reasons are obvious — some food choices just don’t sell nearly as well. But, it also represents a sound business practice. That is, the strategy of streamlining. Why Streamlining should be a Top Priority Business owners are go-getters. They look for the right people and avoid toxic personalities. But, they also can easily fall into a routine. After all, once a measure of success is achieved and maintained, it’s actually difficult not to fall into a routine. However, this usually presents a problem. It stops you from innovating or looking at things through a different prism. In short, it’s a comfortable but dangerous place. Streamlining your business removes wasteful or redundant steps to improve efficiency. Streamlining may involve modernization of your equipment, outsourcing organizational activities, and minimizing low-performing products and services to focus on what your company does best. In business, time is money, so a small business achieves several financial and operational advantages from streamlined operations. You reduce costs, attract more customers through nimble response times, drive higher revenue and compete effectively. —Biz Fluent.com It’s dangerous because you can no longer effectively see your blind spot. And, seasoned business professionals know once you stop seeking out an edge, you’re in for trouble. Take the defunct Blockbuster chain. One time a huge success, it fell prey to its own slow and stubborn adaptation of streaming. The list it joined is very long. This is where streamlining comes into play. It forces you to rethink a lot of things; and, that’s good. How to Streamline Your Business But, what can you streamline if you feel your company is already efficient? The answer is likely longer than the following suggestions. Think of these as a good jumping off point. From there, you can take more steps. Here are some helpful tips for how to streamline your business: Go paperless. While there are certainly industries where paper is a logistical and legal necessity, there are far more which simply don’t need paper. Go paperless wherever you can. This way, you’ll cut down on sorting and sifting when you need to find a specific document. Outsource. This is a great way to increase overall productivity. It’s also some entrepreneurs worst nightmare because it gives a level of control to others. But, the benefits far outweigh any negatives. So, give outsourcing a go and reap the rewards of higher productivity in shorter amounts of time. Automate repetitive tasks. Every business has those monotonous, repetitive takes. Identify these and then seek to automate them. Doing so will free up a little more time and also take the boring feeling out of doing them. Reduce your travel time. Let’s face it, when you need face-to-face meetings, you don’t have to travel across the state, county, or country. You can use video and voice conferencing. This not only cuts down on travel time (which is generally unproductive), it also reduces travel expenses. What’s more, it’s very convenient. How do you streamline your business? What steps do you take to make it more efficient? Please share your thoughts and experiences by leaving a comment! Interested in learning more about business? Then just visit Waters Business Consulting Group.