October 21, 2010

"When there's blood in the streets, buy land" - Baron Rothschild (paraphrased)

In a recession, as in any time of want, the natural instinct is to contract... to tighten the belt... to hole up and wait out the storm. That's where you can zig when the competition zags.

KEEP ON WITH YOUR EXCEPTIONAL SELF

Anyone who's been in business for more than a year knows that, in general, our competitors don't do their homework like we do. They don't research suppliers like we do. They don't work overtime like we do. They don't care about their customers like we do. They don't strive for overall excellence like we do. And in hard times, most in the marketplace do exactly the opposite of what they should... EXPAND.

The old saying, "when there's blood in the streets, buy land", says it all. We must take advantage of hard times, in order to prosper in the good times to follow. So often we forget this, because we don't have an extra $10k to buy more inventory. We don't have an extra $20k to rent that vacant warehouse. And we don't have an extra $35k to hire that new account manager. But who says that expansion requires money?

HANDSHAKES ARE FREE

Believe it or not, there are still a few people out there who want to make money and are smart enough to forge cooperative relationships. Now is the time to contact your colleages... and your competitors! Even call the crazy ones. Everyone's looking for something. You never know what alliance can be forged in these tough times. If you've been running your business well, your colleagues know it. They might not come out and contact you for assistance in the good times but "there are no atheists in foxholes" and when under fire, the smart ones will at least hear you out.

Take stock (I mean actually write it out in Word or on paper) of what you're doing RIGHT these days. List your organization's strong points, alliances, supply chains, specialties, etc. What is it about your outfit that allowed you to survive to this point in the recession? Then take a long hard look at your competitors' and colleagues' websites. What are they up to today? What products and services are they currently offering that you can offer at a reduced price but better quality? What products and services DON'T you offer... but for which you know of or can find better sources? It's one thing to call someone asking for a job or handout - it's another to start off with "hey, I think I can save you some money on XYZ."

These relationships, forged under fire, are the kind that last a lifetime.