Everything I need to know about running a business I learned in the recession

Many people have asked us why we chose to start a business in one of the worst economic downturns that we will know in our lifetimes. The answer is simple; we didn’t know this would happen in May of 2008.  Having said that, would we have made a different decision? Absolutely not! In fact, I would recommend more people make the move when times are tough. We have learned and will continue to learn lessons that take some businesses generations to learn. Here’s a list of my top 5 lessons tough economic times teach all of us.

1. Frugality: Separate your needs from your wants and make smart purchasing decisions. Sure, we all want the grandiose office space that gives the impression of success and prestige, but that cost can be prohibitive. All costs need to be worked into your pricing structure and your overhead may put your pricing above the industry average. In some instances this is ok, but you don’t want your hands tied. Reevaluate where you’re spending money as a business and make sure it’s in line with your goals and vision. You may want the mac-daddy signage/computers whatever, but is it necessary? Determine a set of criteria by which to judge all purchasing decisions and stick to it! As with most rules, there are exceptions and the big exception to this rule is saving money on your people. Do not undervalue or underpay your people. In the end, it’s your people that will help get you and your business though the tough times.

2. Never get complacent: I think we’ve all seen that in tough times the individuals who lose their jobs aren’t necessarily the ones that should have moved on in the first place. In tough times everyone worries about their job because decisions are being forced to be made based on the bottom line. For small businesses, this means always challenging your value proposition. Why did your clients hire you? How do you contribute to their bottom line? Everything comes back to ROI.

3. Move faster than your surroundings: The economy and the market will dictate change. This happens very quickly when things are tough. Anticipate these changes and move faster than the market and certainly faster than your competition. Is the market demanding a new product/service or a change to your current product/service? If so, determine if you can make the necessary changes in a cost-effective, timely manner.

4. Be the best, even if you’re not the only: As the saying goes, “when the tide goes out, you’ll see who’s been swimming naked.” This isn’t a lesson for tough times this is a basic for anyone starting or buying a business. Determine early on what your point of difference will be. You will never be the only, ever, but you can be the best. Always look at what makes your business stand out against your competition and make sure you offer something different and/or better. The market will determine who’s left standing when the economy turns around.

5. Think big, act small: This lesson wraps up the first four lessons. Make smart purchasing decisions always keeping your business goals in mind. Always challenge your value proposition and point of difference, and make changes in a timely manner. Many times, people assume that tough times call for lower prices. Lowering prices in tough times is very rarely the answer. This is why this lesson is extremely important. Don’t forget who you and what you’re business represents. Lowering your prices or giving away free products/services will only train your consumers to expect the same in a good economy. Figure out how to work better and more efficiently. The tough times will eventually end, but the new processes you’ll develop will help you retain employees and increase revenue in a good economy.

Add Twitter to Your Job Search Strategy

Today's guest blogger is Cathy Browne, a tech-savvy PR gal. I first connected with Cathy via Twitter a few months ago. As a fellow PR professional, I was saddened to hear about her losing her job. Since that time, Cathy has shared her situation with the social media world and through numerous media outlets. What resulted is astonishing and, I think, demonstrates the power of integrating on and offline communications to stand out in her quest for the next job. I asked Cathy if I could share her blog post. Thank you Cathy!

 

I’ll state the obvious right up front – this is not a great time to be job hunting. I’ve been looking for a PR job myself for many months, first in Silicon Valley, where I had lived for several years, and now in Vancouver BC, where I came after my visitor’s visa had expired.  It hasn’t been easy – but I’ve learned a great deal along the way.

At first, I did many of the same things most people have been doing – I scoured the major job boards, as well as craigslist, LinkedIn and Facebook.  I even paid a hefty monthly fee to a well-known organization to give me ‘exclusive’ access to choice positions – a huge waste of money I didn’t have.

I was also on Twitter, but it wasn’t part of my job search strategy - but it is now.  One single tweet changed my approach in December.

I simply love Twitter. I had been using it faithfully to connect and engage people in conversation, and had built a nice community for myself, but I had never really brought up my situation.  Then, on a particularly tough day, I announced that I was on the verge of losing everything and would have to leave the US.

The response was immediate – and overwhelming.  Since then, I’ve had the opportunity to tell my story through guest blogs, media interviews, speaking engagements and Internet radio shows.  Several people offered to circulate my resume to friends and colleagues.  To this day, folks I’ve never met and probably will never meet write me to see how I’m doing, feed me leads, give me encouragement, and tell me things will get better.  I’ve started my own blog, Cathy’s Clean Slate.  I have hope.

Twitter is now one of my primary job search tools that I use in conjunction with other social media.  If you are job hunting, or know someone who is, here are a few Twitter tips based on my own experiences.  I hope they help.

•    Build up your Twitter network – follow people you respect, the people they follow, and the people who respect them.  Use tools like Twellow.com and the brand new WeFollow.com to find like-minded people who may be helpful resources. 
•    Follow job sources such as @JobAngels, @SocialMediaJob, @MicroJobs, @SimplyHired and more.
•    Take a good look at your skills and spend the time to ensure that your Twitter bio reflects them.  Your bio is easily searched, so the right buzz words matter.  Be direct.  My bio says I am job hunting in the first line!
•    Make sure you have a twesume - what you do in 140 characters - and tweet it on a regular basis. (No spamming, though…)
•    Join Twitter discussion groups like #journchat, #smbiz, and #gno (Girls Night Out) to talk to people who have similar interests or shared experiences.  Someone online may be able to help.
•    Check out Tweetups or Twitter interest groups on Meetup.com to mix and mingle with people in your area.  Nothing beats face-to-face contact.
•    Let your followers know you are looking, and if there are certain contacts or companies you’d like an introduction to.  This is no time to hold back.  If no one knows, no one can refer you.
•    Keep your followers posted on how the search is going.  We can all relate to your frustration, and cheer you on when things look promising.
•    Talk about your job search in your blog or ask bloggers you follow if they accept guest posts, so you can provide your own insights on social media and job searches.  Post the link on Twitter.
•    Share information. If you find a great new tool, or if you know of opportunities that aren’t a fit for you, tell the world.  Someone will benefit.  Twitter is all about supporting each other.
•    And never give up. I’m not.

What strategies have worked for you – and what haven’t?  What tools have you used successfully?  Share your experiences so we can all benefit.  And if you are hiring, post your requirements here. 

Let’s keep on working for each other.
 

Connect with Cathy Browne: 
Twitter: @CathyBrowne
http://www.cathybrowne.com/

Yes, my grandma is on Facebook

On a typical day, I log onto Facebook to find friend requests from old high school and college friends, people I meet after networking events, colleagues and clients. But recently, I was caught off guard after logging in and seeing a friend request from my… grandma?!?

At first, I was surprised by the request. My grandma, at 72 years old, was on Facebook? But, that feeling quickly changed after realizing that this was my grandma’s way (who lives eight hours away) of keeping in touch with her children, grandchildren, nieces, nephews and cousins through photos, status updates, and real-time interaction.  

Obviously, Facebook is not just for college and high school students anymore. In a study recently completed by istrategylabs, the fastest growing demographic on Facebook is 35-54 year-olds. This demo has not only continued to grow the fastest, but has grown at a rate of 276% from June 2008 through January 2009. The 55 and older demographic is not far behind, growing at a rate of 194%.

People, young and old are finding Facebook valuable to grow their social networks as much as their personal networks. They are looking to become part of a community where they can gather together to support a cause or become a ‘fan’ of a local restaurant or business. In a down economy, people are using their networks of “friends” to help seek out leads to their next job and stay connected.

In February 2009, Facebook turned five years old. Happy Birthday Facebook! You have come a long way in helping connect the more than 150 million people around the world. And as for Grandma, I think she chose the perfect profile picture. She doesn’t look a day older than 25.

How tackling dirty dishes relates to getting started in social media

When tackling a new project or initiative, sometimes the biggest hurdle is often the first one – how or where to begin. This frustration became clear to me a few nights ago when I walked into my aunt's restaurant to help out with the dishes, a great de-stressor from daily life, I volunteer there a few nights a month.

This particular night, I walked into the busy kitchen to find piles of pots and pans on one end of the kitchen counter and piles of dishes from the tables on the other – and both were growing at an alarming rate.

I was overwhelmed and had a brief moment of panic, where was I to start? The head chef gave me a few words of advice and helped me prioritize the piles into manageable pieces and in no time I was cooking (so to speak).

The buzz about social media continues to grow, but for those who have yet to begin, it is something that can be confusing at best, overwhelming at worst.

The following is an overview of our three-phased approach to getting started with social media.

 

Phase 1 – Learning
Take time to become familiar with the online world…look around YouTube or Vimeo, watch a TV show on Hulu, find a great blog about your favorite hobby or connect with old college classmates on Facebook. Listen to what people are discussing on Twitter and questions being proposed on LinkedIn. There is a learning curve with social media and it’s important to learn the environment before jumping in with both feet. This part can be frustrating and overwhelming so ask a lot of questions.

Phase 2 – Planning
Once you learn your way around popular social media sites you’ll start to understand the value they can bring to your business. It’s important to remember that social media requires continuous engagement and while it’s tempting to initiate a number of efforts, social media, like traditional marketing and communications efforts, calls for careful planning.

Phase 3 – Initiation
It’s important to start small and determine the level of commitment each effort will take. You’ll do yourself, and your company a disservice if you create a Facebook page asking for feedback, but don’t have anyone set up to respond to comments.  Genuine interaction is one of the hallmarks of social media. It’s important to be transparent about who you are, what you’re doing and take an interest in other participants. Word-of-mouth is extremely important online and you rely on others who find value in what you’re doing to pass that along – so take the time to spread the word about sources you find to be of value.

As you begin social media efforts, remember that it is another channel of communication (not a silver bullet) and needs to be cross-communicated. Social media requires time and effort and should be used to create a pull in the marketplace, not a push. Take the time to engage and you might be surprised at what you discover.