Small Business Survival Tips During a Recession

No matter whom you ask, one of the most important things you should do for your business during a recession is to market, market, market. I highly recommend reading this article from SFGate called Tips for Small Businesses to Survive Recession. On marketing:

"Don't stop marketing. Scrutinize your marketing budget to make sure you're not wasting money, but don't stop marketing or advertising completely. If you can afford it, you may even want to increase your sales and marketing team."

From BNET, (even though this article is dated 1992, the information is similar to tips from today):

"5. Marketing is everything in a recession.
Smart firms continue with a strong marketing effort even in difficult times. But don't expect instant gratification. Marketing in tough times paves the way for future profits. It's the best way to keep your name in front of both clients and prospects.

..... Maintaining the status quo is for those destined to be the dinosaurs of the 80s, not the dominant firms of the 90s."

Besides marketing, it's also important to operate your business in a lean manner. If you think you're already lean - think again - you can probably get leaner. Through the Merchant Marketplace, you can compare prices on products you're already using to operate your business.

During a recession, you can find some great deals, from hiring excellent employees, to cheaper products, including advertising. It's important to clear your books of expenses that don't work, namely the Yellow Pages. Of course, this isn't for everyone. Some businesses still find the print Yellow Pages to be effective. The majority of MerchantCircle's 650,000 members do not. Here's a list of quotes from merchants from almost every state who have turned their attention away from the Yellow Pages and their high prices and long contracts.

If you haven't already claimed your MerchantCircle listing, you should know that it's free. You can write blogs, newsletters, upload your business pics, connect with other business owners, and communicate with your customers online. Even if you already have a website, MerchantCircle strengthens your overall online presence in a Web 2.0 way. If you're looking for advertising options, MerchantCircle has the most extensive, affordable, and effective advertising options on the web.

Remember: Be aggressive, stay lean, and stay strong.

Sincerely,
Kevin
Community Relations

What To Do in a Recession

If you've paid attention to the ongoing elections, housing industry or Wall Street, you've probably already heard that we are either in the midst of a recession or heading into one. For a business owner, it's important to not shy away from the recession, but double up efforts at attracting new customers with better deals.

In one of my recent conversations with our merchants, Chuck Bruce of Bruce's Sew Handy in Coarsegold, CA, he had one of the most eye-popping figures I've heard recently.

He says:
"My absolutely best coupon redeeming experience I've ever had was through MerchantCircle. I've advertised coupons in the local newspaper offering free gifts with no purchase necessary and got nothing. With one MerchantCircle coupon I had 43 coupons redeemed!"

I have to warn you first off, that that number is not common. Coupon sites have been notoriously hard pressed to gain much traction - Zixxo, Judy's Book - even well-funded and well-publicized sites like Edgeio have gone out of business. While the major reasons lay in consumer apprehension, a lot of it has to do with merchant resourcefulness.

There are a number of great lessons we can learn from Chuck. He started off by collecting email addresses of all his regular and new clients - which is very important when taking advantage of MerchantCircle's free tools. He uploaded them onto his MerchantCircle account and started sending his customers newsletters and coupon deals.

The coupon that generated 43 redemptions was a 'buy one, get one free' which he broke even on. What he did gain from the coupons was customer loyalty and a number of 'extra' added-on purchases. Since opening in April of 2004, Chuck has seen a 30% increase in business every year. So, while the analysts predict gloom, there are many proactive ways a merchant can continue to attract new customers - starting with themselves.

Sincerely,
Kevin L.
Community Relations