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KristineS
12-26-2008, 01:18 PM
I've seen discussions on this topic here and there, but I don't think I've seen a thread about it yet. Must experts agree that 2009 is going to be a tough year for many businesses. I thought it would be nice to discuss some ideas about how all of us can make our businesses more profitable in 2009.

I'd say the first idea that comes to my mind is advertising. Many businesses pull back during economic downturns, but many experts advise that those downturns are precisely the time to advertise. There's less competition for your customer's eyes, and people who sell advertising may be inclined to make deals since fewer people are buying.

So that's my idea, or my first idea anyway? What will the rest of you do to help make your 2009 more profitable?

Aaron Hats
12-26-2008, 03:47 PM
This may seem odd but we're not really going to do anything differently. We've tightened our belt as much as we can. We will continue to look for items that would be good additions to our current offering and will continue to pay down debt. We are considering doing some magazine advertising but haven't decided yet. It would cater to a more upscale client that we would like more of. In the end we'll just keep plugging away.

Aaron

greenoak
12-26-2008, 03:52 PM
my plan is to try and stress a different view in our ads ....mainly saying 'save money with style'....and push the recycled part. and the good old wood part.......also to really dig deep and use all our inventrory as best we can....
we can cut back expenses a bit...but not that much....also may have to cut some hours....ann

orion_joel
12-26-2008, 09:51 PM
I think that from my own point of view doing more marketing is the only thing that will make my business better or worse. However this may not work for everyone.

Another way to improve the profitability of the business can come from looking for new avenues to earn money within the business. I imagine many business owners are looking for something to change when they dont really need to change something as much as add a new stream into the business.

SteveC
12-26-2008, 10:01 PM
Here is a tip, you actually earn what you want to earn and believe you are worth... if you want to earn more than you have this last year, simply write down on a piece of paper what you want to earn and then work to make this happen... this is one goal that most people should have.

greenoak
12-26-2008, 10:41 PM
good point joel...like keep the good thing going...i sure dont want to throw the baby out with the bathwater......
..as in, it would be dangerous for me to put tons of time into something different to the point of hurting the main thing which takes tons of time and deserves to,,,and is keeping us going so well...thats why i cant dive into new web projects like other folks can....
i am sure open to a good sideline tho....
ann

orion_joel
12-27-2008, 02:17 AM
That is exactly what i was trying to say before ann, the problem was i was sitting in a coffee shop almost falling asleep.

But for example in your case, your store is your main income, and really is not something you should to be trying to change to a secondary income. However there are probably things that you can add to your business that will either make some money on the side, or supplement the current income of the business.

One thing i might suggest is spending a little time even if it is only an hour a week working on something on the web, that is related to your business which will improve on your business. Don't look at it as changing what your business is, but more improving the business you have. While i know you have said that many of your smaller items are generic and available a lot of places, maybe it might be worth doing something with them and try selling them online. While you may not make a fortune, even though they are available in many places, you probably have more potential then some of those other places due to your current presence. Additionally many people like to buy online from a brick and mortar business, then someone with no contact details but an email address as well...

KristineS
12-27-2008, 09:49 AM
I agree with you guys, I don't think changing things is always the answer. Especially if you've been doing well, why change what works? I do think every business can improve though, and maybe a tougher economic climate is a good reason for making improvements.

Ann and Aaron make a good point when they recommend not ignoring the core business. You have to tend to what made you successful. Although looking for additional revenue streams is a good idea as well. The more ways you have for money to come in the more stable your business is. We all know the dangers of relying on one company or one person for the majority of our income.

I just find it interesting that there are so many articles out there right now telling small business owners how to survive in this tough economic climate. I think the smart business owners will do as you guys suggested, pay attention to the core business, spend some time developing new revenue schemes, and work on marketing.

vangogh
12-27-2008, 12:51 PM
if you want to earn more than you have this last year, simply write down on a piece of paper what you want to earn and then work to make this happen

Just wanted to emphasize what Steve said. So much of how successful you are or aren't comes down to your own attitude and belief. If you set a goal of making a million dollars this year there's no guarantee you'll make it, but I can guarantee if your goal is to make $20,000 you won't make a million. You have to believe in your success before you can achieve it.

cbscreative
12-27-2008, 02:00 PM
The Steve's (including me) seem to be agreeing on a core principle. Most of the battle is between the ears. You may not achieve every goal to its fullest, but you most definitely will not achieve anything you don't believe for. Like Aaron said in a different thread, "I refuse to participate in a recession." It's not an original quote or concept, but if the majority would have that attitude, recessions would not stand chance of success.

With that said, you still have to prepare for the fact that most people do volunteer to participate in recessions. Plan for it. Find ways to take advantage of the way the majority respond to economic hardship. As irrational as human beings are, their behavior as a whole is very predictable and consistent. When most people believe in a recession, there are historical patterns in their response that never change. Study these patterns and plan accordingly.

I plan to have a great year!

orion_joel
12-27-2008, 06:24 PM
We all know the dangers of relying on one company or one person for the majority of our income.

The above comment kind of hit me when i read it. I know Kristine you were saying it in respect to business and how your business gains income. But i just find it interesting how i know relying on one company or person for the majority of the income for my business is dangerous. Why do so many people feel comfortable earning an income from a single source or one person or company. Employment it would seem is almost the same as you being the business with just one customer.

This is of little consequence though, there is a difference, but really how much of a difference.

On the topic of goals, i think that it is important to set goals, although i never have, to any major success before, it is something i am planning to do for 2009 (which i guess leaves me with only a few days to get them on paper) I will for sure be putting the goal just that little bit above what i think would be feasible for me, For example if nothing changes i would earn around $40,000 without doing any more then i do already. However if i was to set the goal to earn $100,000 i would have to change a few things, however it would be achievable with the right dedication.

KristineS
12-28-2008, 10:18 AM
The above comment kind of hit me when i read it. I know Kristine you were saying it in respect to business and how your business gains income. But i just find it interesting how i know relying on one company or person for the majority of the income for my business is dangerous. Why do so many people feel comfortable earning an income from a single source or one person or company. Employment it would seem is almost the same as you being the business with just one customer.



Wow, that's something to think about Joel, and it's true. I think that's why more people are working on diversifying. You can't count on a company being around anymore, no matter how big it is or how long it's been in business. You need to have income arriving from different sources or you'll be in trouble. I predict that the next ten years will see a huge increase in people starting their own businesses and in people doing contract work instead of working for one employer. It sounds weird to say it, but that sort of arrangement is less risky.

vangogh
12-28-2008, 11:36 AM
Joel I think people are happy with the one big source of revenue for a couple of simple reasons. In the beginning it seems great. It often means your business went from struggling to making good money and it's easy to trick yourself into thinking it will always be that way.

The other reason is because it's easy. Finding clients and customers isn't an easy task. If it were we'd have a lot less people asking how to do it. It fits back into the above point, but if you have that client paying most of your bills it's easier to just let them keep doing it than it is to finding more clients.

The reason having too much revenue come in from one source is a bad thing only reveals itself once that client stops using your services so you have to work at getting more clients while things are still good. That's not easy for most people. We all have a tendency to react to the disaster as opposed to being proactive in order to avert the disaster.

orion_joel
12-28-2008, 06:47 PM
All points completely understood from here Vangogh, as i have been through each one of those stages. Still getting over trying to react to the disaster 18 months later, and all i have managed is one small client that does not even purchase every month.

However for the most part this is due i think to not really putting in the necessary effort to get additional clients. I know i need to, and i know i want to, i just have not taken any steps towards actually doing so. However in the new year hope to change all this.

phanio
01-17-2009, 12:35 PM
There are opprotunities in every market. While the media screams recession, other companies are making a killing (no recession for them).

There is a lot of talk about setting goals and attitudes to improve your business. Goals are fine, action is better. Your only goal should be to work smarter at your business. Make better, faster decission, and do what is right. These other things are just obsticles. Make a million - just a line in the sand - work smart and it will come. I look at goals like make a million as a dream. No harm in dreaming. The bigger the dream the better. But, the goal has to come from your actions, not your dreams.

I have always believed in a simple business philosophy - when times are good, run lean and mean. When time are bad, run leaner. What I mean is that you should always be thinking about your cash flow - good times are bad. There is no sense in spending $500 on something that only benefits you for $100.

Thus, know you expenses. Know what brings the most bang for the buck. Don't just spend because you can or have the means. Everything has value - a present value. Put you money, time, efforts in the projects that have the greatest value - not that are cool or that are what everyone else is doing or even in what you think should be done. Find out what has the best value for your business and go after it. Plus, look for opportutnies in everything. If it has a bad side, then try to find the good side as there are opportunities there. If it has a good side, it must have a better side - as there are opportunities there.

Just my thoughts.

vangogh
01-17-2009, 02:46 PM
I'm not one to think you can't succeed in a poor economy. The rules just change so you have to adapt to them. People and businesses have less money to spend, but it doesn't mean they have no money to spend. If you can provide better value than your competition your orders should increase.

You can also explore new markets. People don't have as much money to spend? Start a business showing them how to better budget their money or come up with a new product that replaces an expensive one.

Also consider that since everyone has less money many things cost less. You should be able to buy and lock in things like advertising at a much lower rate now than you could a year ago or will be able to a year from now. A bad economy means you have to do things differently. It doesn't mean you can't succeed, though.

During the last recession new businesses did start, grow, and thrive. One of them was Google. So one of the biggest companies of today started during the last time our economy wasn't looking too good. In a few years we may be looking back and saying the same thing about another success story.

huggytree
01-17-2009, 05:32 PM
i think expanding what you do is important. Being less specialized and more broad...

i still give jobs away to my service and repair plumbing friend....i gave a $500 one away just this week and was told that customer had more future work....because i didnt know how to repair urinal flush valves i lost potentially thousands...maybe i should have done some on the job/learn as you go repair.....i gave it away to a service friend who gives me information in return...i also sub. for him when he is sick...its a partnership of sorts...i never give work away with nothing in return.

ive given away $4,000 (atleast) in business to him last year....im slowly expanding what i can do and hopefully this year it wont be as much....

vangogh
01-17-2009, 08:02 PM
I agree about expanding, but I also think you should expand around your central business and not stray too far from it. For example it wouldn't make sense for me to start offering plumbing services or for you to start offering web design services. However each of us could still expand into new markets that complement out services or don't reach too far from the central theme of what we do.

Blessed
01-18-2009, 03:22 PM
I have always believed in a simple business philosophy - when times are good, run lean and mean. When time are bad, run leaner. What I mean is that you should always be thinking about your cash flow - good times are bad. There is no sense in spending $500 on something that only benefits you for $100.

Thus, know you expenses. Know what brings the most bang for the buck. Don't just spend because you can or have the means. Everything has value - a present value. Put you money, time, efforts in the projects that have the greatest value - not that are cool or that are what everyone else is doing or even in what you think should be done. Find out what has the best value for your business and go after it. Plus, look for opportutnies in everything. If it has a bad side, then try to find the good side as there are opportunities there. If it has a good side, it must have a better side - as there are opportunities there.

It's funny that you should mention this... I agree with it 100% and my husband and I were just talking last night about someone we know who gets an idea in his head runs out and spends all kinds of money on equipment and then six months later practically gives stuff away because the idea didn't work out right... The reason it came up is that while my husband is laid off he is cutting, splitting and selling firewood to bring in some extra money, it's something he enjoys doing and since we (and both of our father's) heat with wood it will benefit us or someone close to us even if we never sold a cord of wood. This guy decided that he'd get into the game too but it's already more work than he bargained for so we're figuring that sometime this summer we'll be able to get his expensive log splitter for a few hundred bucks just because the guy decides to give it up and get out of it. He works for himself, is always broke and never can figure out where all his money went...

Blessed
01-18-2009, 03:25 PM
I agree about expanding, but I also think you should expand around your central business and not stray too far from it. For example it wouldn't make sense for me to start offering plumbing services or for you to start offering web design services. However each of us could still expand into new markets that complement out services or don't reach too far from the central theme of what we do.

This is what I'm going to do to try to make 2009 better for me than 2008 was. I do graphic design and focus on small businesses - I want to diversify and add some web design to my skill set and portfolio - I'll be reaching the same customers and adding more services for them from one source without varying too far from my original skill set.

Aaron Hats
01-18-2009, 03:59 PM
There's a great article in the Feb issue of Entrepreneur magazine. Actually, it's the editor's letter and it's titled Fear Is Not A Growth Strategy. Period. Everyone should read it but the title really says it all and I couldn't agree more with it. For over a year now, I've been thinking of starting a hat club and finally started it this week. I was unsure if anybody would pay a membership fee to save money but people are already signing up. Just another way to differentiate ourselves from the competition and generate repeat business. A great way to start off 2009 as far as I'm concerned.

Aaron

cbscreative
01-18-2009, 08:24 PM
Bummer. You people sure know how to discourage a guy. I guess my idea for cbscreative web design, plumbing, and landscaping services isn't going to work then. :(

orion_joel
01-19-2009, 06:23 PM
I think that sounds like a great idea Steve, maybe you may want to consider some of it in your marketing. Maybe some of these ideas,

cbscreative, the plumbers of the internet, increasing the flow of traffic to your website with our marketing services

or

cbscreative, landscaping for your website.

Both maybe wont work, but some ideas ;)

cbscreative
01-19-2009, 09:10 PM
cbscreative, the plumbers of the internet, increasing the flow of traffic to your website with our marketing services

or

cbscreative, landscaping for your website.

Now if I can just get all my taglines on the business cards.

orion_joel
01-19-2009, 10:08 PM
Multiple business cards, for the different facets within your business.

Blessed
01-20-2009, 09:20 AM
Now if I can just get all my taglines on the business cards.

you might have to go to the 5x7 or tri-fold business cards we used to have to offer to some of our print customers... :p

cbscreative
01-20-2009, 10:44 AM
Thanks, Blessed, that will solve the problem. :)

orion_joel
01-20-2009, 06:21 PM
Double sided postcard as a business card, one side for each service. Or split each side in half and have 4 cards in one.

tuitionsource
02-13-2009, 12:36 AM
How about partnering with other small businesses in your area for cross promotions. You put up some small advertising in your biz for them and they do the same for you. Also, keep up your visibilty. Have a booth a the upcoming springfests. Buy a bunch of cheap small hats that look funny and give them to all the kids at the festivals. They will wear them or they will wind up on the ground all over the place. Your name will be every where. You could even volunteer to help clean up afterwards. Get involved in your local school system and make sure the press knows.

orion_joel
02-13-2009, 11:31 PM
Pretty much anything that you can do that will be helpful and get you free media coverage is a bonus, because as soon as you get coverage in media that is genuinely seen not to be paid for, you gain i think i huge amount of momentum.