Small Business Marketing in A Down Economy – Will You Hunker Down or Take Advantage of the Opportunities?

With all this bad news lately about our failing economy, the government’s proposed billion dollar bailout package, and how everyone’s pocketbooks are being squeezed like never before, it’s easy to see why some businesses are making the decision to simply hunker down and ride out the storm.

However, just because all the talking heads are focused on all the ‘bad news’ of the economy doesn’t mean you should do the same.  In fact, it is times like these that present a GREAT opportunity for the savvy business owner to get ahead of the competition and establish a position of dominance in their marketplace.

You see, no matter what the media says about how bad things are, people are still spending money.  Shopping malls are still filled with shoppers, restaurants are packed to the gills with hungry patrons, and just turn on any football game this Saturday or Sunday and you’ll see the stadiums stuffed to the rafters with ‘excited to pay through the nose’ fans cheering on their favorite teams.

So, if there really are consumers that are still spending money, what can a smart business do to not just survive these shaky times, but really thrive and come out ahead?

Here are 5 steps to help your business capitalize on the opportunities this environment presents:

1. Re-evaluate your target market.

In turbulent times like these, everybody feels the pinch.  It’s unavoidable.  However, there are still segments of your market that are more insulated than others.  It’s these insulated segments that still have the income to spend on your products or services, and as a result, these are the segments you should target right now.

Does this mean you ignore the current customers or market segments you’re already servicing?  Not at all!  But, if you really want to capitalize on the current climate and grow your business while everyone else is hunkering down, you MUST focus your time and attention on those segments of your marketplace that still have the ability to pay for your products and services.

Plus, once things return to normal, you’ll have expanded your marketplace and diversified your customer base, giving you a solid foundation that could weather any economic storm.

2. Do MORE marketing.

You see, while your competition is lying low, riding out this economic storm, your prospects and customers are still out there looking to buy products and services.   The products and services you offer.

This presents a FANTASTIC opportunity for you because while your marketing efforts would normally be met with lots of competition, because everyone else is hiding out, conserving their funds, your business will stand out and you’ll capture a great many of those looking to purchase what you have to offer.

Now, while any kind of marketing right now is better than nothing, you should focus on using OFFER-RESPONSE marketing if you really want to maximize your marketing dollars.

3. Focus on the relationship instead of the transaction.

One of the biggest mistakes any business can make, especially during times like this, is to view your customers as simply a source of revenue.  No matter how hard you try to mask your greediness, your true objectives will come through and instead of establishing a relationship that could help you be profitable for years to come, all you’ll get is a one-time sale that ends at the door.

So, focus your efforts on creating ongoing relationships that deliver value for your clients long-term.  When you concentrate on providing a product or service that truly helps them solve their problems or satisfy their wants/needs, you build a solid foundation for your business that will allow you to profit and grow during any type of market condition.

4. Make yourself indispensible to your clients.

Again, your clients are looking for solutions to their problems and they have the money to spend.  The problem is, they don’t know who to trust.

However, once they find a business they CAN trust, they’ll continue to be loyal to that business AS LONG AS they continue to solve their problems or satisfy their needs.  That being said, figure out a way to make yourself an integral part of your client’s lives.

What additional products or services could you offer that are complimentary to what you’re already selling?  What relationships do you have with other service providers that you could recommend?  What can you do to become an integral part of your client’s lives, above and beyond simply selling them a product or service?

5. Make yourself super-efficient.

One of the reasons most businesses are sitting back, hoping to simply ride out this storm is the fact that they just aren’t very efficient at what they do.  They have a lot of waste they simply don’t know how to eliminate.

You see, the key to being super-efficient is to focus on those areas of your business that generate the majority of your revenue.  I imagine you’ve heard of the Pareto Principle which states that 20% of the effort generates 80% of the results.  This is true in EVERY aspect of life and business.

That being said, do you know which 20% is generating 80% of the results?  Do you know which customers are generating the 80%?  Do you know which marketing methods are producing the 80%?  Do you know which products or services are providing 80% of your business?  Do you know which of your employees are creating 80% of the results?

If you want to really capitalize on the opportunities before you, spend some time and figure out what it is that’s generating the results that matter.  Then figure out a way to duplicate those efforts and eliminate those things that fall in the 80% only producing 20% of the results.

During challenging times like these, you basically have 2 choices.  The first is to do like 95% of your competition and cut back, hoping you’re able to ride out the storm.  The second option is to regroup, identify the opportunities, and focus your efforts on making the most of them.

Use these 5 steps to put yourself in the second group and look at all that’s happened as a fantastic opportunity to really achieve some serious growth for your business.  And when things are on the rise once again, you’ll have a business that stronger, more profitable, and positioned as the clear leader in your marketplace.