Forums: Discussions for entrepreneurs and small business.

In this down economy, what worked for me was launching NEW products.

This is not the time for businesses to be on the defensive, you must be on the offensive and fight your way out.

In my case, I launched a high-margin, high-profit, upscale product.

This was my timeline:

Sept 08 - wall street fiasco

Oct 08 - the bottom fell out, sales dropped

Nov 08 - lowest sales of the year... economy not improving, but getting even worse. I have very little cash, and cash flow is royally screwed up (only trickle sales).

PLAN OF ACTION:

I had to re-evaluate my biz plan and do course correction if I'm going to survive the coming 2009.

I suspended an ongoing R&D project, and channeled the funds to another project that was moving slow on the backburner.  Made this backburner project a high-priority.  Re-group, re-think.

I decided instead of lowering my prices on my existing product line, I should launch a new upscale product, marketed to "people with money", and pour more energy and time on this new customer base.

If I'm going to survive, I need to change my market base... I don't want my main market to be "people without monoey, hurt by the recession." I want to target people who are not affected, or not much affected by the recession. I want the "rich people, people with money" to buy my products.

December 08 - First of the new product was launched. Success! People are buying it. They see GREAT VALUE in it! It's not cheap, but it's better (and more inexpensive) compared to others out there.

This past 2009, sales were 49% over 2008 sales. And still growing every month.

The "upscale" focus was so successful, that I launched a few more upscale product in 2009. Each succeeding product was priced even more expensive than the previous one.  And all products are generating great sales.

I still kept my low-priced, entry-level products and continued marketing these to the budget conscious. When the economy improves, I know these people will upgrade and buy my "upscale" product line. Some of them already did!

Thanks

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http://performtoprofit.com

This is the best time to start a business. While many people are giving up & closing up shop, others could be taking their place. Doing business is always tough & may involve some risks. A bad economy is when you have to do even more for your company. The current economic climate has made it almost intolerably difficult for some people to start or maintain a business. Small business owners need every advantage that they can find to help them stay in business and to help them flourish.  Bill Gates and Paul Allen didn't wait for the recession to pass before launching Microsoft in 1975.

Starting a business is one thing but maintaining it is another. The proper business management is highly important. You have to have the right strategy & management support to maintain a business in a slow or bad economy. Many times that involves strategic planning, which more small businesses need to look into. It’s a good time for an entrepreneur to start a business but he/ she has to really focus on the maintenance part. If a person doesn’t strategically plan, get the proper management support then a bad economy could end their business.

It’s all about your strategy and planning. If a person has the right strategy, plan and support in place, starting a business may not be a problem. Smart & wise entrepreneurs can be successful in tough times or a bad economy. Many times people who shouldn’t be starting a business may lose out. Any time is the right time to start a business if it is a viable business idea, if the opportunity presents itself, if you properly analyze your situation and the market. If you properly plan, strategize, organize & get the proper management support that you need, a company could flourish in a bad or good economy.