Persistence Pays: Strategies for Surviving Business Downturns

You love what you do. And for the most part, you make a living doing it in the business you’ve created. But sometimes external factors such as the economy, changes in consumer trends, competition or the weather can affect your business through no fault of your own. The decision is always up to you whether to ride it out, risking added debt to carry the business, or simply cashing out and moving on.

But this is your baby. This is what you know. What you can do with your hands tied behind your back. It’s what you birthed and nurtured over the years. So before closing the doors, consider this:

MARKETS CAN TURN – A TRUE SURVIVAL STORY

My friend Henry is in the neon business. Over the last decade, LED signage has taken over most of the territory that neon used to occupy (except if you live in Las Vegas, of course). So Henry moved his business into his home, hunkered down, cut his expenses, started growing much of his own food, cut out travel vacation and started making gifts instead of buying them.

Over time, those competitors who switched to LED sold off all their neon supplies at cents on the dollar. And Henry bought those supplies. Then they started sending their neon clients Henry’s way. And eventually, the nostalgia market found him through word of mouth. Now Henry sometimes wonders where he’ll find the time to do all the other things he’s learned to love during his slow time.

By the way, if you like neon, drop Henry a line at InfiniteNeon@Yahoo.com . But don’t expect a fast answer. He cut out his internet expense when times were slow and switched to using the internet at the library instead. Now he’s hooked on going to the library every week.

LESSONS FROM HENRY

Slash Expenses both in your business and personal life. After all, one supports the other so it’s just two different pockets of the same pair of jeans.

Negotiate Better Deals with Suppliers. It’s easy to just keep paying the same old rates out of habit, but there’s always a better deal to be had as a loyal customer.

Keep an Excellent Credit Rating throughout your business and personal life. This is when you might need to rely on it for extra financing.

Remember That Charity Begins at Home. You may have time to help out others during slow times but hold on to your money to ride out the storm.

It’s amazing what you can do when you set your mind to it.

Tune in next week for How to Expand Your Profit Margin Through Better Expense Management.