Recession? What Recession?

Every time you turn on the radio or television, log on to the Internet, or open the newspaper these days, you get blasted with all sorts of statistics about the housing slump, high oil prices, the roller coaster stock market or rising unemployment.

I don't think things are really as bad as the media is making them out to be. Certainly not in my neck of the woods, where activity has been soaring since ringing in the new year. The New York Times points out that macroeconomic statistics are still encouraging, including a 4.4% annual growth rate in the gross domestic product (GDP). Due to foreign investment, the banking losses are spread throughout the world, minimizing the impact on any one location. A weaker dollar actually helps US imports, since folks in other countries can purchase more of our goods for fewer of their dollars (or whatever they call their money).

But there are lots of folks talking up a recession out there, and with enough people talking and planning for one, you wonder if eventually it won't become a self-fulfilling prophecy. So what is the prudent business owner to do?

If you want to play it safe, practice the old "plan for the worst but hope for the best" philosophy. Tightening the belt can be a positive thing, as long as you don't cut off the circulation.

DO review your marketing program to be sure you are investing well. How do you track the results of your advertising? What percentage return are you receiving from each venue? If you don't know or can't track your returns on it, stop putting dollars in that direction. Instead, reallocate those dollars into something with proven returns or a new idea or promotion that can be tracked.

DON'T cut your advertising budget. This is the biggest mistake that a small business can make, and most often the first knee-jerk response to news of economic downturn. Now I'm no economist, but cutting back on marketing efforts as part of preparing for a recession just doesn't make any sense to me. Think it through: The public perceives an economic downturn and consumers stop buying as much. The number of businesses providing products and services remains the same, but now they are vying for fewer dollars from fewer customers. This means each business has to work harder to turn the head of the available consumer. If you do not stay on top of your marketing efforts, and your competitor does, isn't it more likely than ever that customers might be enticed to buy from someone other than you? Even your existing customers?

FIND A WAY to continue to promote and advertise your business without increasing and perhaps even moderately decreasing the amount you are investing. Promotional products can boost your advertising efforts without increasing your advertising budget. How? Here's one way of many: Do you buy pens to use in your business? What about note pads or sticky notes? How much of your office supply budget goes for these items? Did you know that you can probably purchase these items in bulk, with your logo and contact information imprinted, for approximately the same amount? Contact me to learn more about how to put ordinary, everyday items to work AMPflifying your business message.