Turn Economic Disaster into Profits

Every disaster is an opportunity; that's an old martial arts saying that works as well on the field of business combat. In the Art of War, Sun Tzu says:

"Speed is of the essence in war. What is valued in war is quick victory, not prolonged operations."

Entrepreneurs who are willing to be responsive and nimble are best suited to make adjustments necessary to profit in an economic downturn. Moving quickly doesn't mean you should make rash decisions; it means to prepare yourself to make meaningful decisions without hesitation and without regret. This means embracing continual development as an individual and as a company. When you're constantly engaged in research, training and development you're best prepared to respond quickly and efficiently when an opportunity is available; particularly in the middle of a disaster!

Here are some ideas you can implement quickly to turn disaster into profit:

• Reposition your message; emphasize the essential quality of your product or service…
  When the economy tightens discretionary spending becomes a real problem to those who provide otherwise "non-essential" goods and services. Remember that when it comes down to it, anything above and beyond food, shelter, acute medical care and basic transportation is non-essential. Find essential qualities that people will not want to do without under any circumstances and promote that message vigorously. Of course I'm assuming you deliver quality goods and services!
  
  If you operate a restaurant emphasize the need for an occasional night out to reduce stress and keep your sanity during tough times. If you run a gym make sure people know that health is not a luxury but a necessity, particularly compared to the cost of medical problems related to a lack of exercise. If you sell financial advice, what better time to impress prospects with the need for sound guidance during confusing and fearful times?
  
  
  
• Give it away…
  There is no better time to give than when there is genuine need. Giving during tough times earns greater appreciation and builds loyalty with current customers and prospects. You still need to stay in business, but decide what you can afford to give and do it today. Can you do a seminar offering substantive advice? A restaurant might give a free cooking class highlighting how to prepare great meals on a budget. A doctor's office can give away a free exam to new patients. Membership businesses could offer a trial period, even if you haven't had to in the past. Give bonuses with premium purchases.
  
  Look for ways to contribute to your community; non-profits are hurting during these times as well and the goodwill and networking you'll develop with a gift of time or other resources is extremely valuable.
  
  
• Coopertate! Embrace the competition…
  "Coopertition" is a word I coined to describe my willingness to look at competitors as allies. Leverage trade associations, Chambers and networking groups to develop strategic alliances with competitors. Together you can create co-operative marketing campaigns, develop buying pools and share resources. Compete fairly and work cooperatively.
  
  
• Increase marketing; reduce advertising…
  I define marketing as what you're willing to do to promote your business. Advertising is when you pay someone else to do this work for you. Make decisions quickly to leverage your resources and go guerilla in your marketing efforts. Put some feet on the street and get back to good old fashioned relationship building and community networking in your market.
  
  
• Downsize…
  This is always a tough pill to swallow, but sometimes a quick reduction in staff, facilities or overhead can keep you running in the black rather than digging a deeper hole just to stay in business. Smaller companies and "soloprenuers" may lack the resources to weather a bad economic storm; don't be afraid to cut quickly when necessary and utilize newly available resources to build back your strength.
  
  
• Lower prices…
  Maybe the last resort, but usually a viable alternative compared to closing your doors. Can you operate for a time on smaller margins? If so, change prices quickly and make a big hairy deal about it! Make sure your customers know you're walking the walk with them. Times are tough, we're all in this together. Turn a price reduction into an opportunity to develop good will with current customers and a marketing opportunity to generate new business.
  

It's most effective to combine several strategies. Make decisions quickly and implement them immediately. Never look at any of these adjustments as a failure. You're doing what it takes to survive and prosper during difficult times. At the same time you're developing skills, knowledge and resources that will position you as a leader when the economy recovers.

No matter what you're facing; continually develop yourself personally and as an organization. Use down-time as a new found opportunity for training, research and planning. Position yourself to make more effective and efficient decisions now and in the future, in good times and bad.

Jim Bouchard is America's Black Belt Powervator; speaker, coach & author of Dynamic Components of Personal POWER. Watch for upcoming programs on how to prosper during an economic downturn. Stay up to date on this and other program, and receive thousands of dollars worth of bonus resources by joining our "NO SPAM" mailing list! Register at JimBouchard.org!