The other day I was chatting with a friend. During the conversation, he mentioned a friend of his who was planning to start a business. But the man gave up when the economy went sour. And so did hundreds and thousands of others.
An assumption tossed their dreams in the bin. And they let it happen.
Any assumption without proper research - i.e. a guess - can easily, and quickly, destroy your business. Marketing campaigns can be ruined, product can overstock in the warehouse; bankruptcy starts rearing its ugly head. Now, all your time and money goes down the dirty drain.
But that's a little off base. I want to touch upon what many others did: stopped at the slightest indication of difficulty. So pay attention. What I am about to say is guaranteed to help you navigate and exploit this Recession:
"People Are Not Spending Less - They Want More"
One of my most poignant insights is realizing the market still exists. Stores are still crowded. Video games are still being bought. Concerts are still attended. So again, people still have the same amount of money to spend - and they will spend it - but they want "more bang for their buck." As a savvy entrepreneur, you must figure out to deliver on this silent desire.
Let's take a standard auto repair shop as an example. It typically ranges between $15-$30 for an oil change. This is relatively inexpensive and a norm of mechanics. This leaves a huge vacancy in the market for someone to fill.
Here is Ritch, a mechanic and owner of "Safe Auto Parts." wWen a you ask Ritch for an oil change, he looks you straight in the eye and calmly quotes, "$100."
After the initial heart attack, you might ask him, "Holy -expletive-, why is it so much?"
Comment: you did not say "Hell No" or "Never." You remain interested in Ritch's service... but you need to understand why it is so unusually high.
Ritch smiles and says, "Well, I never use the low-brand oil filter, like other mechanics. It's usually a scam to try and get you to come back for more, because they only have a life span of x days/months/years. I also rotate your tires, patch up any possibly hazardous damages to them, and check your engine to make sure everything runs well. I would hate for you an your family to break down somewhere and for your kids to be at risk. I pull out some of your dents and do some touch up paint, if need be. I know how embarrassing those dents can be and how you might feel when others see them. Oh, and I do a diagnostic. If you have any automotive trouble with any of the things I checked within 12 months, I'll refund your money at no hassle."
What did Ritch just do? Exactly what every other business owner and marketer should. Yes, his fee was higher. Yes, all of his competitors would have chewed their tobacco and spit out another "$30" fee and been done with it. And that is exactly why Ritch is more successful than them.
He didn't go under the market. He went above - and delivered more for less. Can you imagine what a bigger auto repair shop would charge for everything Ritch offered? From experience, I can tell you this - more than $100.
Ritch used the magic of USP and built value in his service by adding the benefit of his labor. "This is this much because of this, which will do this for you...." And then the clincher - a complete money back guarantee.
With this kind of motive power, nothing can stop your business.
Not even a Recession.
Over and Out,