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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Edit Column To stand out in today’s crowded market, brands often need more than traditional advertising. Guerrilla marketing—a creative, surprise-driven approach—offers companies a unique edge by using imaginative tactics to make a lasting impression.

Guerrilla Marketing: Risky Gimmick or Good for Business? (And How To Use It in the Age of Social Media)

November 7, 2024 No Comments

To stand out in today’s crowded market, brands often need more than traditional advertising. Guerrilla marketing—a creative, surprise-driven approach—offers companies a unique edge by using imaginative tactics to make a lasting impression.

Ways to Build Strategic Partnerships

May 16, 2017 No Comments

There are many ways to build a business, and few are as powerful as establishing strategic partnerships. Ideally, these create win-win scenarios where both parties benefit. The problem with such relationships is they can become more of a burden than a help, particularly when rushed, or, when done with disregard for others. Savvy business owners know the benefit of strategic partnerships, forging an alliance with another entity to provide more products and services to their customers. In fact, a 2014 survey conducted by PricewaterhouseCoopers revealed that in excess of 80 percent of CEO’s looked to create such relationships. However, the sad fact about these partnerships is that a 65 percent were actually successful, so, 15 percent of those did not work out. Ways to Build Strategic Partnerships Strategic partnerships are generally sought in order to expand without the cost of an actual expansion. It allows entrepreneurs to tap into resources with existing structures and increase their books of business. Unfortunately, empirical data shows that half of these business relationships fail. The reasons are many, but it can be avoided if you take the necessary precautions. The formula for a successful strategic partnership may seem easy: 1 + 1 = 3. Indeed, partnerships are a proven way to boost the bottom line. American Express surveyed small businesses in government contracting and found that those who teamed up won 54 percent more prime contracts than average. But creating effective alliances is not always so easy. Partnerships gone wrong can lead to frustration, financial losses and even litigation. —Success.com Of course, no amount of caution or preparation guarantees things will work out without a hitch. Small businesses can really benefit from strategic partnerships, but to do so, you have to establish a good rapport and be transparent as to your wants, needs, as well as expectations. Here are some ways to build strategic partnerships that will help your company grow while benefiting your business partner: Know and quantify your abilities and resources. One of the worst decisions to make is to form a strategic partnership without being able to fulfill your obligations. You certainly don’t want to crack egg all over your face. So, don’t put yourself in such a position and know precisely what you can bring to the table and be upfront about it. Even if you can patch together enough to deliver when necessary, you don’t want the stress that comes with this kind of a situation. Be very clear on your “why.” Another huge, colossal mistake, that business owners make is forming partnerships simply to increase their bottom lines. While that is definitely part of the equation, if you don’t go into a relationship with selfish service in-mind, you’re setting yourself up for big time disappointment. Ask yourself honestly why you want to form a business relationship. If you can’t find an answer other than money, you’re eventually going to sabotage your own efforts. Ask for reasons why potential partners want to connect.What’s true for you is just as true for potential partners. Don’t be afraid to ask penetrating questions to get at the truth. If you discover he or she is on a one-way self-serving mission, you definitely need to pass. Seek those with a shared vision and value system. Take it a step further than just asking questions and get to know him or her before you partner. Build a relationship and during that time, you’ll learn their vision and values. Go slow, learn, and take the time necessary to make the right decision. In addition to these, don’t expect miracles to happen after you form a strategic partnership. In fact, you ought to expect to be uncomfortable from time-to-time by getting out and meeting with your strategic partners face to face. There’s just no way to hedge against every possible contingency, but fostering and developing positive relationships will build trust and eventual business between the strategic partners. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

5 Effective Ways to Increase Team Motivation

March 15, 2018 No Comments

Team motivation. It’s an ongoing challenge in some organizations. Team motivation is actually more about the role of management than employees themselves. In fact, a study by Harvard found that the majority of companies demotivate their employees. Now, that sounds strange at first but it’s completely sensible. So, let’s take a look at both team motivation and employee demotivation. Why Employees Lose their Motivation According to the Harvard Business School Working Knowledge, a full 85 percent of employees’ morale decreases after just six months on the job. (That survey included a whopping 1.2 million team members from 52 Fortune 1000 companies.) Perhaps most surprisingly, that same study reveals it’s actually management which is squarely to blame for the loss of motivation. There are a number of benefits to having highly motivated employees in your ranks but for business owners, all roads eventually lead to the bottom line. High levels of employee motivation are intrinsically linked to high levels of employee engagement, which is something that organizations are paying much more attention to these days, and with good reason. —Business.com That’s an incredible fact. And, it means you’re probably (albeit unwittingly) inflicting more damage than you are creating a productive workplace. It’s all about the dynamic between employees and managers, when it comes down to it. 5 Effective Ways to Increase Team Motivation So, how do you motivate your employees? What do you do to keep them upbeat and ready to tackle the next challenge? It’s really not that difficult. Team motivation just requires a bit of self-awareness and a few changes in your day-to-day work life. Here are five effective ways to increase team motivation: Forgo useless meetings. Did you know the average company wastes 3.8 hours every week holding truly unproductive meetings? That’s a significant amount of time that could be otherwise spent much more wisely. So, only invite the necessary people and keep the meeting on-track. Don’t micromanage. Micromanagement is one of the biggest demotivators in the workplace. One survey even reveals 38 percent of employees would actually prefer performing unpleasant activities than deal with a micromanaging boss. Provide them with a pleasant environment. There are a number of ways to create a more pleasant work environment. For instance, allowing pets at work. Or, giving employees more flexibility with their work hours. Simply put, the more pleasant the environment, the more happy your employees and that’s good news for everyone. Quickly forgive mistakes. Everybody makes mistakes. It’s just part of life. And, it doesn’t help to ruminate over an error. It’s also unhelpful to go so far as to punish an employee for a mistake. Forgive mistakes quickly and move on with a healthy dose of encouragement. Pay employees what they’re worth. Here’s a disturbing statistic — 26 percent of productive employees report they’d leave their companies for just a 5 percent pay increase. The lesson, of course, is to pay your employees what they are worth. How do you motivate your employees? What methods make your team members more effective? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.