Small Business Survival 101

Let’s face it… thing’s aren’t going to be easy for small businesses in the upcoming months.

Money is tight and spending is down. So how can you survive?

Economic recessions have been a major part of US history. They hit hard and leave the unprepared in shambles. Experts say a recession is negative real economic growth for at least two successive quarters in a year.

There have been 9 recessions from 1950-2000. They consumed 94 months between 1950 and 2000, accounting for 14% of the time in those 50 years. The average recession has lasted 11 months and some have made it as long as 16 months. It’s now evident that a 10th recession is on its way.

Business owners are aware that consistent marketing year round is required for best results. However, economic slowdowns force them to do everything possible to reduce costs. They easily get intimidated by the numbers on the price tag for ongoing marketing. Marketing then comes to seen a luxury only affordable to the Fortune 500 and über-entrepreneur.

The major misconception is that marketing has to be expensive. And I’m here to tell you it doesn’t.

Marketing is possible with a tight budget – and during a recession. As a matter of fact, if you pull back your marketing efforts, chances are you won’t make it through an economic downturn to reap the benefits when people start spending more again.

If cash flow is a problem for you as the economy slows down, that’s all the more reason to spend intelligently, so that you get more bang for your buck.

From 1980 to 1985, McGraw-Hill Research analyzed 600 companies and their marketing expenditures. After 1985, McGraw-Hill concluded that those firms that had maintained (or increased) their marketing throughout the ‘81-’82 recession saw an average sales growth of 275% over the next five years. But those companies who cut their marketing saw paltry sales growth over the next fiveyears of just 19%.

So if you are convinced that marketing on a budget should be part of your survival guide, check out my other site, The Power Publicist, which offers tips and tactics to help you market yourself without over spending.