Moving Forward in a Recession

Everywhere you go you hear someone mention the economy. It’s the hot topic right now. No one can get a job because of the economy. No one can make any money because of the economy. No one can be successful in business because of the economy.
Whether you think the economy is really the cause of these issues or not, on thing is for sure: People like to blame it for their problems.

First off I think it is important to mention that I don’t think we are seeing a recession, I think we are seeing a shift in how our society operates. I think instead of losing jobs, the job titles are changing and the people in prior positions are shifting, further separating the lower class from the upper class.
BUT! For arguments sake, let’s say that the economy is down, and what we are witnessing is this mystical force preventing anyone from moving forward.

How do you get passed it?

The answer is actually much simpler than you would have thought…

See, the reason most businesses fail is that they reach a point where their overhead exceeds their income. They are forced to pay out more then they get in.

At that point, most of those new to business make a critical mistake: they start cutting costs like marketing, search engine optimization, advertising, you know, stuff they don’t think they really need.

Most of them relax now that their overhead has been drastically cut, and look forward to the future of the business now that they operate on as little as half the overhead.

The thing is, the business owner cut services and programs that would ensure the business’s success in the future. When that future rolls around, sales plummet, and that will force the business owner to either go in debt to keep the business alive, or close its doors forever.

That’s what not to do.

What you should do is figure out your priorities.

Figure out what it is that you are doing that works. Figure out who your target audience is and what they *REALLY* want. Figure out new and creative ways that you can reach them on a budget.

Most of all though, figure out a plan.

You have to know where you are headed, or you’ll wander around in the desert. You need a goal, and you need a roadmap to get there.

Don’t wait until you finally can’t afford anything and you have to cut costs…watch the numbers and see it coming so that you can be prepared for it.

If your business is doing well, consider saving a bit of money from revenue each month for “Emergency expenses”. Or if you can afford to experiment, do so on potential markets for your product or service.

But above else, do not cut your own throat.

Cutting costs like marketing will always bite you in the ass…you have to know what you need and what you don’t, but you definitely need customers, and marketing helps you reach them.

Don’t make the age old mistake!

So what about you? Have you or someone you know ever cut costs that you really shouldn’t have?

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