The Top 10 Businesses

Top Ten Businesses in a Bad Economy According to One Coach the following businesses tend to succeed during a recession: 1. Business Coaching 2. Business Networking 3. Alternative Fuels 4. Environmental Services 5. Health Care 6. Nail Salons 7. Discount Retailers 8. Luxury Products 9. IT and Technology Services 10. Credit and Debt Management It is debatable whether Nail Salons and Luxury products truly do succeed in a recession. Item #9 in my view should be ranked higher in the list as businesses utilize technology to become more efficient and profitable during tight, recessionary periods. #3 and 4 are great forward looking businesses, but they carry a premium and subject to positive government policy and regulations. Just know you need to be prepared for the long haul with Alternative Fuels and Environmental Services as demand will ebb and flow directly associated to the whims of the White House and Congress. In addition, during down economies, you will need to aggressively sell how much these businesses can save consumers and businesses money in a significant, quantifiable way, since the offering will be products and services that carry a price premium. Glad to see my business at the top of the list! Businesses find out they need a business consultant and coach during downtimes-the smart ones know this before they get in trouble! Real World Business Recession Tactics and Strategies Some areas which Sara Wilson keyed on in the December '08 Entrepreneur Magazine Article, "Trend: Economy", which makes a lot of sense in this Economy: 1. A Business Idea that is Working right now: CouponMom a) Stephanie Nelson started a website that teaches consumers how to save money buying groceries using coupons. b) 2008 Revenue has doubled and the site had over 1 million unique users in July. 2. Local Scope: Due to financial pressures and an uncertain economic outlook, consumers are spending more time at home and closer to home. bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod bbqsamyod a) Consumers are frequenting local restaurants and entertainment establishments, which are more low key and less expensive. b) Instead of traveling to Disneyworld, families are utilizing "staycations", enjoying local area parks, lakes and beaches. 3. Green Business: Organics are and have been exploding in growth and the outlook is very good. People want to eat healthy and feed their family healthy food even when things are tight financially. Green conservation is another growing business niche. 4. Web Business: Why spend large start up dollars on a brick and mortar Business, when you can run the same or similar business from home, utilizing the internet? a) Web businesses are very competitive and the learning curve is significant if you aren't familiar with web marketing techniques. Sara Wilson had another good article, "How are Franchisees Dealing?" in the January '09 Entrepreneur Magazine that interviewed four different franchise business owners on how they were dealing with obstacles during this current economic slump: 1. Floyd's 99 Barbershop: The franchisee, Jay Palmer, couldn't find a loan for a new store. He tried using his home and his parent's home as collateral and no luck with banks, including trying to obtain an SBA or Corporate loan. a. The Solution: Mr. Palmer found a personal investor (Angel Investor). The investor came into the shop for a shave and a haircut when Mr. Palmer wasn't around so he could get a good feel for the business. He ended up investing $150,000 after seeing a steady stream of happy customers and happy, energetic employees. This was a great move on Mr. Palmer's part, using a track record of success and clearly showing a sharp investor the real deal behind the potential success of his future business opportunity: great service, great product, happy customers and content, energetic employees. In just one site visit and the positive experience with the business' services, the investor was ready to supply the needed capital even after multiple bank turn-downs. 2. Kitchen Solvers: Franchisees, Carrie and John Borden Kircher, customer niche based changed. Their customer market became price orientated, and the business offers premium kitchen and bath remodeling. Leads dropped 19% and sales are down 25% over the last two years. a. The Solution: Their solution is rebrand their vans, get new signs; increase letters to past customers; leave a gift with a customer after a job is complete; and working with their franchiser on the operational side of the business. Ok, as a Business Consultant I am going to give my two cents on the Borden Kircher's proposed solutions: i. Rebranding Vans and New Signage: In my experienced opinion, this is a waste of money. I would instead spend this money on a new Marketing Plan which concentrates on two areas: a) How to target higher wealth clients in the market area. b) How to sell price based customers on why premium services and products can save them money in the long run. Once the new Marketing Strategies bring in profits, then it is a good time to upgrade signs and re-brand with those growth dollars. ii. Increase Letters to past clients: Ok, but what is the purpose of a letter? The time to ask for referrals is the day the job is completed. When the client is happy with their new Kitchen or Bath. A newsletter with examples of completed jobs and customer testimonials, along with a preferred customer discount coupon, may be more effective in obtaining an add-on sale with an existing customer. A newsletter can also be a forum to introduce other services to current customers which they may not be aware, such as, having an article on the Design Services that Kitchen Solvers offers. The most cost effective, normally highest bang for your marketing buck, are continuing sales to existing customers. iii. Leaving a Gift Basket with a Customer Post Job Completion: The Borden Kircher's are looking to implement better customer service and they believe customers are looking for the "Wow" factor. Leaving a gift is not customer service, and the wow factor should be as a result of a beautifully completed job. A Gift Basket will get neither. Customer Service starts at the Sales and Design Stage and continues throughout the job. The business owners showing up on the job to check on things and talk with the client is good customer service. Meeting with the customer in person after a job is completed to go over everything and ensure the client is happy is good customer service (and a great time to drop off the latest company newsletter and ask for several referrals). Customer Service is showing up on the job when the client is unhappy with the contractor's work. This type of highly motivated customer service will create the Wow factor for Kitchen Solvers, along with a quality, premium, beautiful look in the finished kitchen or bathroom, leaving a lasting impression. iv. Work on the Operational Side with the Franchisor: This is one of the fantastic advantages a Franchisee can leverage: utilizing the experience and resources of the Franchisor. Some Operational Tips I would make as a Business Consultant: