Growing Business During A Recession
Can you grow your business during a recession? Historically, small companies can thrive during an economic downturn due to weakened competition and corporate cutbacks that level out the playing field. According to a survey conducted for Intuit, 9/10 of small businesses see opportunities for growing business this year. It’s this planning of growth that keeps 27% of entrepreneurs up at night, next to the 21% who are concerned about scraping up enough money to pay the bills. By taking a look at some of the thriving entrepreneurial success stories, we can learn a thing or two about leading a bright vision through the dark tunnel.
It was the year 2000. Silicon Valley was launching a new high-tech startup everyday. Business parks sprung up and it didn’t take a rocket scientist to figure out that something transformative was taking place. Meanwhile, two buddies — Adam Lowry and Eric Ryan — were making market plans as well… only theirs had investors laughing, rather than shelling out cash. Even though no one was biting on the concept of neatly-packaged, environmentally-conscious soap and hygiene products, they knew they could appeal to a younger, hipper audience with their products and give giants like Proctor and Gamble a run for their money. For Lowry and Ryan, growing business is about doing it yourself to save precious cash (like mixing soaps in bathtubs and bottling it themselves); it’s about continuously selling your concept to your vendors and other venture capitalists; it’s about constantly fundraising. As Ryan says, “The hungriest wolves hunt best.”
Google is perhaps the most famous success story of growing business during a fragile economy. The company’s developers garnered a large following by researching and delivering what people wanted — a simple design, helpful search results and zero annoying banner ads. Once their first big angel investor was on board, many others looked to join — hence the saying, “It’s always easier to make money when you have money.” They aggressively pursued both online and offline marketing, selling radio, newspaper and TV ads. The company was also unafraid to make acquisitions — buying out competitors like Keyhole Inc, MeasureMap, Youtube, DoubleClick, GrandCentral, Postini and On2 Technologies. They’ve also partnered up with Nasa, Microsoft, Nokia, Ericsson, Myspace, Fox, Life Magazine, Sun Microsystems and AOL/Time Warner.
Growing business ventures– during a recession or not — takes innovative thinking and marketing strategy. For the 2009 holiday season, Wal-mart is listing more than 100 toys for $10 or less to appeal to cash-strapped customers. Toys R Us is planning to open up 20 satellite stores in shopping malls during the pre-Christmas months to accommodate shoppers who are looking to make fewer trips and save on gas. Target is promoting “dashing designer deals” developed by fashion designers like Carlos Falchi for $25 or less. K-Mart is promoting its popular “layaway” program again. Stage Stores is launching a “Christmas Cash Club” just “like grandma used to have” — offering $10 cash-back for every $100 in purchases. While this holiday season may still shrink by a projected 1% overall, the market plans that seek new strategies will be the victors.
Jeremy Larson is a foremost expert in acid reflux medication. His work has been extensively published in various online publications in this area. For more information on the treatment for acid reflux, visit remedyforacidreflux.com.
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