If you listen too much to the financial news these days, you can put yourself into a deep clinical depression within about 15 minutes. Most of the experts are predicting global slowdowns and catastrophe scenarios, but how do you adopt a strategy to keep your small startup business afloat? Is it possible to even thrive in a recession?
To accelerate your startup during a recession you must have a STRATEGY for SURVIVAL and GROWTH.
Here are four tips:
1. Don’t lose your belief and your will to win, even though most others around you are losing theirs… No other piece of advice is more valuable. Guard your enthusiasm and optimism carefully. This is what makes you special as an entrepreneur. Do not let anyone diminish this! The great news is that most people will give in to negative thoughts and walk around with a cloud hanging over their heads. You, on the other hand, will refuse to let this current (temporary) situation affect you and you will have the sunshine on your face at all times. Prospects and customers will notice this and be drawn to you.
2. Have the intellectual agility to quickly adapt… to modify your product or services, to repackage, rename or even reinvent what you are offering to harmonize with the dominant fears and beliefs of the times. During the Great Depression of the 1930s, companies that sold men’s neckties actually increased their sales. When consumers had less money, they put off buying a new suit, but invested in a new tie instead. Have you thought through how your business could adapt to actually benefit from the current situation? Can you change your message or packaging in order to reflect this?
3. Redirect your efforts at better, more likely buyers… (i.e., focus on those buyers that are the least or the last to be effected by the recession). We all have different types of customers. Which of your customers will be less affected by a recession? Look at public (government) spending. Take a look at the companies that are still hiring new employees today. Who are they? What is it about them that makes them less or last affected by the recession? There are clues everywhere. Are you looking carefully enough and are you flexible enough to take advantage of this quickly?
4. Work harder… There is no replacement for this. During tough times, you just have to work harder than the rest. You must be more diligent and follow-up more closely in order to get the optimal value out of every customer lead you get. Keep your optimism (as in point 1), work harder and you will be surprised that even during tough economic times you will survive and even thrive.
Remember that during the biggest crises, come the biggest opportunities.
Team up with others who can help you! Want to discuss this and other issues affecting startup companies with other experienced entrepreneurs? Attend one of our free monthly webinars. See www.xelerator.com for dates and times.