Is the "economy" hurting your business?

[rezzy]

I placed in quotes for my own personal reason, and I can get into that later, but has anyone seen any change in the client base with everything upside down?

[Baseline]

Tremendously. My jobs come from developers building new things (houses, ofices, etc.). Already laid off half the staff; and slashing bids just to keep some revenue coming in. Until building (or growth) occurs- not a lot of call for my profession.

[Steve B]

Yes - it has definitely affected me and everyone that I speak to.

[Harold Mansfield]

I noticed a change back in '07 when I was a service provider. Most of my steady clients were Real Estate and Mortgage professionals looking for ways to generate leads online.

Around Feb of that year, it started going bad and that whole industry started panicking...by Aug, I had to get a job to pay the bills.
That was enough for me to get out of providing services, and get into starting my own thing with the money I was making at the new job. The new job is gone now, the company couldn't sustain the downturn in the economy..thank God I spent that year learning and opening sites so that by the time it was over, I had an income coming in.

This month is not as good as last month, but Ebay is now the top earner for me...seems more people are looking for used items to save money so I am running with it.

I don't have clients anymore. Watching them leave or go belly up one by one was a scary experience as you watched your income become non-existent.
If i ever provide services again, it won't be the main part of my income...not enough control.

[rezzy]

This month is not as good as last month, but Ebay is now the top earner for me...seems more people are looking for used items to save money so I am running with it.


What do you do with Ebay? Are you selling products? If so, where/how do you get them?

[Harold Mansfield]

What do you do with Ebay? Are you selling products? If so, where/how do you get them?

No, I'm just an ebay affiliate. I have 6 or so niche sites up (2 of them in my sig). Used electronics are doing O.K. the last 2 months. Thinking about converting my Amaozon sites over to ebay since new products have taken a dive and Ebay pays frequently.

[KristineS]

I have seen a difference. A lot of people in this area have had their hours cut back. A lot of companies laying people off or closing. Of course Michigan has been hit hard with all the problems the auto industry has had, so that definitely makes a difference.

[Dan Furman]

Yup. I'm definitely closing less business. It's not a horrible drop or anything (I'm still working quite a bit), but it is less.

But, in my way of thinking, that's ok. I've had a few really incredible years, business-wise, so it's only natural that sometimes things drop (thinking it can go up forever is dangerous.) I'll use some of my newfound free time to look into other revenue streams, etc.

[rezzy]

So, with the downturn everyone has faced what are you doing to combat this, if any?

[Dan Furman]

So, with the downturn everyone has faced what are you doing to combat this, if any?

I wouldn't say "combat" it (because like I mentioned, I'm not into the "always gotta go up" mindset, and never ran my business or life that way - we can withstand a decent downtick in business), but I AM looking to use some newfound time in a constructive manner.

Plans include: tweaking my websites for better conversion, opening a new web copywriting website, looking to get into more consulting/speaking/training, check out an affiliate opportunity or two, and perhaps write another book.

edit: I guess that is combating it in a sense, because everything I mentioned is done with an eye on revenue. But I don't really look at it like "business is down... holy @#$%, gotta do something!!" I've *always* looked to produce revenue - good times or bad, so in my mind, it's no different. It's just right now I have a little more free time than I did at this time last year.

[tuitionsource]

My business has been rental real estate for several years. We have been on an expansion path during those years. We have stopped expanding and focused on keeping our occupancies high. In order to continue expanding I have been working on internet businesses for the last 6 months. Yes the economy has had an effect on them as well. The effect has been positive. It's very cool creating something from just an idea!

[Spider]

Tremendously. My jobs come from developers building new things (houses, ofices, etc.). Already laid off half the staff; and slashing bids just to keep some revenue coming in. Until building (or growth) occurs- not a lot of call for my profession.Can you make your theodolites coin-operated, BL, perch them on a suitable lookout point and encourage passing motorists to stop and look at the scenery?


Okay. Not funny!!!

[Baseline]

Can you make your theodolites coin-operated, BL, perch them on a suitable lookout point and encourage passing motorists to stop and look at the scenery?


Okay. Not funny!!!

Actually.... it is. I'll probably forwrd that to the surveyors message board for laughs, as all of us used to get asked by people "Are you takin' pictures?"


Maybe I can keep the equipment working!!!:D

[huggytree]

since im in construction i definately notice a difference...ive only been in business for 2 years and the downturn on new homes was already started back then.....but its gotten worse...new homes dont exist anymore...down to 1/5th of what they were...and low price is all that matters on 80% of them.....there 1 plumbing shop which has pretty much taken over the new home market....i follow behind them 1-2 years and replace all their junk parts.....

my gross is up for 2009....work seems the same as 08 to me though....not really worse

im having more and more problems collecting my money from contractors....it may be a good thing that works been slow over the winter and many of them dont owe me...i hear stories of tens of thousands being owed to other plumbers....i am only owed $1,500 right now.....they all eventually pay-usually after a few threats and 10 phone calls.

the biggest difference i see is slow payers from 08 to 09

[nealrm]

We do real estate advertising, and I was expecting the downturn to hurt us more than it has. We get paid once the property sells, so house sales are important to us. What happened was the our on-line inventory kept increasing and stabilized at a new higher level. The number of sales each month is now less than 2 year ago, but only about 10% less.

We been using the slowdown to position ourselves for when the market returns to normal. We have expanded into new areas and generally increased our coverage area by 50%. I also used the time to give the site a new look.

[billbenson]

Yes and no. I lost access to my main product line the beginning of Jan. I'm trying to become a direct distributor rather than go through another distributor which is what I had been doing. I should hear today.

Sales have been normal and I've been continuing to sell. Starting to cancelations from old order and upset customers. The economy isn't hurting the product sales though.

[rezzy]

So I gather most people have taken this time to refocus their marketing for when the economy returns they will be all the better.

These changes may be the thing that helps you step out in the "new" market.

[Dan Furman]

Yea, downturns have historically been good for the nimble and creative.

So, why did you put "economy" in quotes? :)

[rezzy]

So, why did you put "economy" in quotes? :)
I was waiting for someone to make this post.

When I hear the economy is bad, my perception is this great giant "The Economy". Instead, I see it as you and me, we represent the economy. We are caught in a self-fulling circle.

The news goes on everyday about how many jobs are lost, the doom and gloom happening around us. (I do agree times are bad). People who are "wealthy" have even changed their spending habits when they have not seen any reduction in income.

Everyone feels like they need to keep money and save. This hurts businesses and so on. It all started with the housing market, but thats not the purpose of this rant. So, thats why I put in quotes. :)

[huggytree]

the wealthy have seen a 55% reduction in their income...the stockmarket.

in actual dollars they have lost hundreds of thousands or millions...

1/2 the nations wealth is now gone in the stock market....isnt it amazing anyone's spending at all...you have 1 million saved in the stock market and 6 months later you have $450,000.....wouldnt you just be depressed?

i keep adding my company profits from last year from a money market account into stocks...20% at a time....it only goes down....1,000 points in the past 30 days.....its just so depressing...

im still spending money...ive never seen a good economy since ive been in business..i look forward to the day i dont have to worry about where the next job will come from....i worry daily even though the jobs always keep coming.

[Dan Furman]

i look forward to the day i dont have to worry about where the next job will come from....i worry daily even though the jobs always keep coming.

Huggy, this never ends. You will never be completely comfortable. It's part of what makes us entrepreneurs.

[billbenson]

Dan, your comment reminds me of a friends approach and how different it is than most of us here, myself included. I'm sitting here struggling, doing all the work myself. It's 9pm and I started work at 6:30 am.

My friend has started a number of high tech businesses and sold them. Rather than do the work (although he can), he puts together an engineering team, marketing team, VC, etc and manages the whole thing. In short, he always thinks on a much bigger scale from the start than I do. He's made millions. The only company that I know of that he had that didn't make it was his first one.

For a recent product he had me on line to do an AdWords campaign. He ended up scrapping the idea because the time to market was to long after a feasibility study. Many of us here could do the same thing, but choose to grow into a larger business rather than start out on a much larger scale.

[rezzy]

Its interesting billbenson that he can pick up a business quickly and then run onto the next idea. Its this mobililtiy that makes him successful. He can quickly come up with a hot idea, and setup the framework to run it, sell it and move on.

[billbenson]

He generally goes in with a plan of selling the business within 2 years or so.

[Dan Furman]

My friend has started a number of high tech businesses and sold them. Rather than do the work (although he can), he puts together an engineering team, marketing team, VC, etc and manages the whole thing. In short, he always thinks on a much bigger scale from the start than I do. He's made millions.

This, to me, is where the different "levels" of entrepreneurship come in. Personally, I have zero interest in making my company big. I might have a contractor or two, and maybe at some point I become more of an agency, but that's likely as far as I'll ever take it (and it's debatable if I ever even go there, as I like where I am.)

But some entrepreneurs think much bigger - and that's fine. There's room for us all.

[rezzy]

My thought is to get a business to the point it can run itself and I can step out and start another or enjoy the riches.

[billbenson]

I don't have the skill set or contacts to do what my friend does. He started out trying to build a business right out of college. Failed, but he learned from his mistakes. He did a lot of consulting to develop contacts.

I kind of agree with you and kind of don't Dan. I'd like to build my business to the point where I can farm out a lot of the aspects of web design. That would allow me to grow more rapidly. The beauty of it is, I know a lot about web design and web marketing, so I can manage pretty well anyone I employ or contract with for those functions.

[huggytree]

i dont know if its the stock market this week or what it is...its down to no calls anymore

1 new call the whole week!...its a 3 hour job that im doing next week.

it was looking up a couple of weeks ago...i did alot of bidding

good news is im down to $800 in past due invoices....everyone is eventually paying me
and because of the late winter slow down no one owes me any large amounts anymore..im sitting on a large amount of money just from 09....things seem horrible, but my gross $ from 09 says otherwise.

im hoping we are hitting a bottom right now... soon tax returns will come and inject some cash into my market.

i usually see 4-5 plumbing vans during each day when im driving around...this past week i saw 1 van in 5 days.......now is when they will start to go under i figure...i know my old boss is going to lay off his last employee....im hitting up his customers heavily incase he decides to retire and go out of business....he has 1 customer which would bring me 150k in business a year.

[rezzy]

wow thats quite a customer! i wish you the best with that.

[huggytree]

they used to build 8-10 houses a year...they were all 600k houses...getting a house a month would fill the gap i still have in my 'average' month

i call them every 3 months

[Vivid Color Zack]

I can't really say how or if we're being hurt.

We have been growing like wildfire in the past 6 months, but it's all due to word of mouth. Almost every new account we get has been through other people that have loved our products and service. We didn't have the customer base we do now this time last year, so I can't say what business would have been like if the economy were better.

I have nothing to compare it with right now so all I can say is it's helping me. And hey maybe it is. Businesses looking to cut costs are firing their marketing firms and ad agencies to try to do more in house, but they still need a printer... bam, that's me! :)

[cocoy]

Mine is based on construction...so yes.