Tough Economy? Now¡¦s Your Opportunity

In today¡¦s tough economy when those employed by mid and large size corporations are fretting about losing their jobs, small businesses can benefit and start positioning themselves for bigger opportunities for when the economy is once again flourishing.

As larger companies are closing doors, reducing headcount, eliminating products or services, now¡¦s the time to ramp up and take advantage of changes in your industry. Attrition in your target market¡¦s industry can mean opportunity for you due to:
„\ Less competition
„\ Cheaper alternatives
„\ Lower overhead costs
„\ Greater flexibility

Less Competition
In the past, you might have bemoaned the fact that larger competitors were stealing the deal, but those companies may be the very ones who are closing their doors or feeling seriously strapped due higher operating costs that may have to do with payroll, benefits, or office space, for example.

Cheaper Alternatives
Everyone is seeking cheaper alternatives for their business and this may be your opportunity to provide that and exceptional value. Prospects that, in the past, passed you over for the larger, big name or big brand competitor may be ripe for the picking. Now is the time to position your business as the cost-effective alternative to those larger companies.

Low Overhead Costs
If you¡¦re a service-based business that is selling knowledge rather than product, you¡¦ll likely have lower capital needs be less impacted by the downturn of the credit markets as service businesses generally don¡¦t incur costs associated with inventory, warehousing, shipping, or capital equipment.

Greater Flexibility
As a small business, you can respond more quickly to the changing needs of your target market without having to go through time-consuming administrative and management approvals. Your size enables you morph quickly in response to the changing needs of clients. Now is the time to think about the changes your clients or target market are making in their businesses that you can capitalize on quickly.

An Example
Let¡¦s look at a corporate training business, for example. This economic period could be a great opportunity for you if your goal is to target larger firms that might be reducing or eliminating their corporate training departments in order to reduce overhead. Bear in mind that just because a department is eliminated, doesn¡¦t mean the need of that business is.

Businesses will be looking for cheaper alternatives like consultants they can hire on an ¡§as needed¡¨ basis. The ivy league professor the company originally wanted to fly in to do the training session could now replaced with a local, reputable expert so costs such as meals, flight and accommodations are not incurred.

Sending employees to expensive big name training facilities or hotels might be replaced by a local facility that doesn¡¦t have big off-site travel costs associated with it. It is also a way for big firms to give back and support local businesses and the local economy in tough times which also serves as good PR for the firm.

Becoming the Big Fish
In the past larger businesses may not have considered you as an option, but in this economy firms often move downstream, willing to work with ¡§smaller fish¡¨, all in the name of revenue.

For entrepreneurs such as graphic designers, lawyers, trainers, consultants, printers, etc., this can spell opportunity. Larger businesses may outsource work to several vendors instead of that big name vendor with higher pricing that can¡¦t compete with you because they need to cover big operating expenses.

To find out which companies are moving downstream, pay close attention to industry trades and media. Ask around and talk to your clients, prospects and other vendors in your industry to uncover opportunities.

A Final Word
Be aware! This is a volatile time for businesses, so even if you do catch that ¡§big fish¡¨, keep up your sales and marketing just in case your ¡§big fish¡¨ gets taken out by this economy. If they hit bottom, you could, too. As with investing, maintain a diversified portfolio of clients so if some are taken out by this economy, you¡¦re still in the game.