Surviving The Recession: Conserve Cash And Network Like Your Life Depended On It

Now that recession is upon us, let’s put our heads together and figure out how to survive it.

I’ve already mentioned Surviving The Recession: Morph Your Expertise, which is about figuring out how to pivot your business model to “roll with the punches” in the new, black economy.

Generally speaking, we all must keep our eye on the ball. Keeping up with local, national and international news and thinking through how they impact your field and your particular business and profit relationships will help. Staying on top of news from your professional journals and organizations is a must.  You can’t roll with the punches if you don’t know when the punches are coming and where they will land.

The two most important tips

Bill Roth gives them in Going Green

  • Conserve Cash: If you’re running your business or household right now on credit, you know exactly what I mean by conserving cash. During a recession, debt is an expense most can’t afford. Businesses should try to operate within their cash flows, despite the fact that their cash flows will probably fall during a recession. So do what you have to do now to create cash. Sell assets, cut costs and access the best path for creating cash: become more efficient.
  • Reach Out: You’re not in this boat alone. I speak at churches that host career planning for those in transition. Unfortunately, the attendance is growing along with individual pain. But the key point is that these people are not failures–but rather very talented people who’ve been caught up by this economy. Reach out and find meetings like these to network with talented people who can lend their first-hand experience and advice to you.”

    • I think networking may be the most efficient way to really understand the impact of events happening in business because you receive and share the distilled expertise of someone knowledgeable in her field. Your networking should include not only your own field, but related fields which have an impact on yours: buyers, suppliers, advertisers, bankers.

    And , if you are a proficient networker you will have sufficient information, resources and contacts to constantly re-invent yourself and your company according to what the world needs today.

    John Jantsch, of Duct Tape Marketing, in 7 Recession-Busting Marketing Basics has several thoughts, that reinforce the prove tactic of networking to re-energize your marketing and get out of any hole the recession may be putting you into:

    1) Get out from behind the computer – Building personal relationships is always in style. It’s very tempting to sit and write blog posts and participate on social networking sites. And while these aren’t always bad things, sometimes you need to go out and shake some hands. Make it a point to go to several industry conferences every year. Join an industry or chamber type group and go to events where you can make connections with prospects and partners. Join a referral group such as BNI and participate. Go visit your customers and ask for referrals.

    2) Speak at events, hold workshops – Marketing is essentially a trust-building game. Few things build trust more efficiently than getting in front of a group of potential customers and sharing your expertise in an educational setting. Go propose to conduct a hot sounding workshop for your bank, accounting firm, law firm and insurance firm. Check local libraries, chambers, and associations for opportunities. Look in your local business papers and see what groups have speakers listed in calendars of events. Get two of your best customers to help conduct peer2peer webinars to discuss best practices and issues with peers you invite.

    When this recession ends, anywhere from 18 to 36 months from now, you will have survived and have a much sounder, stronger business emerging from the steps you’ve taken now.


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