Federal Reserve Chairman, Ben S. Bernanke, has been upbeat about the economy recovering but then goes on to offer a dreary assessment of how the recovery will unfold. He warns that persistent unemployment, tepid bank lending, and continued troubles in commercial real estate will continue to weaken the economy. And, he forecasts that low interest rates will continue for an extended period of time and that a continued weak dollar against the euro and other world currencies could cause inflation.
There is a growing fear that the federal government is retreating from the free-market economic principles of the last half-century. As evidence the “experts” mention the size of the economic stimulus package, the fact that a lot of the tax cuts will expire at the end of the year, the administrations intervention in the GM and Chrysler reorganizations, and the big bill that the Health Bill will cost. All of these programs are not necessarily going to help the small and medium sized business, the foundation of our economy.
Now, The Federal Government is looking at providing incentives to small business to encourage investment. Where does “small business” find the money to invest? What will be the benefit of The Federal Government’s program and how and when will this assistance flow to you? Do you doubt that the government can even help your business? So what does a business person do?
Investigate New Markets. New Products and New Services Now
- Don't waist valuable resources by continuing to push your products or services if they are not selling. Look at other markets you could serve and test to identify if you can competitively sell into and service these markets. If you can, assertively go for it! If that doesn’t work then try something else. Be aggressive. Do it now and if necessary do it all again.
The Way You Used To Sell and Promote Your Business Just Doesn’t Work Any More
- Could you alter how you sell and be more successful? Sell a service with your product. Or sell a product with your service. I know a company that sells packing supplies and has a good program for supplying the product that allows you pay as you use it. They presented a customer with the program and they liked it but the products did not fit their need. So the packaging company found out what products they need and now they are supplying the products with the advantage of the program.
Revisit how you are promoting your business, There many very effective online services such as social networking, online advertising and analytics tools available to business. Educate yourself on them and jump on board. They will likely save you time and money. Use them!
Lower Your Costs Hire the Unemployed for Part-time Help
- If you have work to be done that requires additional talent or skills then hire someone part time. There are a lot of experienced, and hungry, people out there that can make an immediate impact on your operation. This approach will keep costs such as taxes, insurance, benefits and more to a minimum. This approach may allow management more time to concentrate on running and selling the business’s products and services. This approach also may drastically reduce the need for training. And, you may even identify those that you may want to keep around, hire or call back in the future. Don’t worry about Independent Contractor versus employee’s issues. For those businesses that want the security of a signed agreement, there are Independent Contractor agreements that can easily be found on the Internet or just make a quick visit to a professional to assist in preparing the wording for a formal agreement.
You Can Create Operating Capital
- Through some creativity you may be able to create operating capital. Work with your vendors to test market products that could sell. Many vendors might work on consignment, or supply the product to start, and get paid later. Pay off debt whenever you can but not at the expense of test marketing products that could improve your sales. If you need equipment look at leasing the equipment. There are a number of companies and banks that offer leasing options. You can rent, lease with option to buy, or lease and get the tax benefit also.
And, did you know that there are insurance companies that for a predetermined fee will guarantee payment of your receivables, which could free up cash flow immediately?
What are Your Customers Thinking and Saying?
- Visit with your customers, they will tell you what's wrong with your business and how you can improve. Plus your customers might appreciate your visit and use you even more. There are questionnaires out there and you could devise your own to address what your customer is thinking. They may have problems you can’t solve but you may know someone that can help them.
Think Internationally For Opportunities
- Sell to an international customer. The weaker dollar makes your product much more competitive. Your city and state’s economic development groups, private companies and more can assist with the logistics and help find distributors and markets for your products or services. The Dollar is trading at 1.47 to the Euro right now and may devalue further. You have a distinct advantage.
These are just some ways to overcome the weak economy. The federal government is not going to get us out of the hole. American business growth is the only way and unless we find new ways to improve the picture we will not improve the business picture.
Submitted by Jerry C. Hahn, HEP Enterprise LLC. HEP Enterprise LLC is a Business Consultant. References and Information can be provided. Contact Jerry at 502-551-9066 or by email at Jerry C. Hahn
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