7 Ways to Thrive in a Recession

The following strategies will help you and your business to not only survive, but thrive in recession:

1) Understand that at least part of recession is nothing but a psychological attitude of fear and lack mentality.

Of course there are economic factors in play that you might not have much control over, but a big part of a recession is also that everybody is constantly thinking about it and reacting to it from a place of fear. The constant thought that "there is not enough" or "it's going down" causes many people to reduce their spending or delay crucial investments. You need to understand this psychological factor and know that it probably affects your customers - and retool your marketing and sales approach towards that. But you also need to get out of this place of fear and into a mode of intelligent courage to take cold, rational and bold actions. The only people who thrive in recession are those who do not let it emotionally affect them and act from a place of intelligent calm.

2) Get a better handle on your debts.

Negotiate lower payments or longer payment terms on you debts. This will help you to free up some cash flow, which you need to upgrade your marketing. Which leads to the next strategy:

3) Upgrade your marketing.

The most common mistake made by businesses during a recession is to reduce spending on marketing. But what you need to do is to upgrade your marketing! People make slower and possibly better informed decisions about their spending, so what they need is more convincing and more exposure to your product and services, not less. Make sure you advertising and marketing efforts are targeted to the right market, sending the right message and make use of the right media - and make sure the results are tested and measured. Everything else is waste. Upgrading your marketing is the way to thrive in a recession.

4) Cut your personal spending.

What I mean by that is: In your everyday life, ask yourself the question: Do I really need this or do I just want that? For the time being, spend only on what you really need and use the freed up cash to invest in your business instead. Once you see the first positive results, you can indulge yourself by buying something you want - and it will feel much more fulfilling that way, too!

5)Increase your effectiveness and productivity.

Develop laser-like focus on cash-flow, deal-flow and customer retention and customer ascension. Establish a new habit of focusing only the things which will make you money. Throw out all distractions, block out the unnecessary.

6) Think and do "multiple streams of income".

The worst number in business is one. Why? If you rely on only one business, one client, one product, one service, one way of distribution - then you have real problem once that one thing goes down: the one important client leaving, the newspaper advertising suddenly underperforming etc. Instead, think of how you can multi-channel your marketing or develop new products or services linked to your core business. You might even want to set up some side businesses that do not require much time and investment, but bring in some extra cash.

7) Focus on building relationship with your clients and customers.

This is always important, but much more so in a downturn. A great relationship will make customers to stay with you when the going gets tough. Emotional connection always beats rational considerations. Make sure you make your customers feel really good about you and your business. Especially in a recession, people look for what makes the feel good, because there is so much doom and gloom around. So build a feel-good relationship with your clients and also with every new prospect right from the start. Not only will it make you thrive financially, but it will also make YOU FEEL GOOD, too!

By Niels Koschoreck

Niels Koschoreck is an influential thinker, business life coach and marketing strategy consultant. He just launched, http://www.givetherecessionthefinger.com, a unique and timely coaching program, in co-operation with Mathias Maul.

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