Cut Overhead - Surviving The Recession - Part 7 of 7

For the last week, as we've discussed steps to cope with the Recession of 2008, we've assumed that the recession actually exists.

But, what if you agree with Federal Reserve Chairman Ben Bernanke?

The Chairman tells us that a recession, by definition, is two consecutive fiscal quarters of “negative growth.” He says we're not there, yet.

Maybe he's right.

But, by the time Chairman Bernanke makes it official, we're likely to be more than half way through it. The time to prepare is NOW.

If it doesn't happen, there'll be time to celebrate when our companies are healthy.

And the last of our seven steps is Cut Overhead.


Its not likely you'll find one big cut.

What's very likely is that you'll find several smaller cuts that will add up to significant amounts, and every dollar you save can be the equivalent of ten dollars in before tax earnings. You can't save your way to prosperity, but this exercise will help you find ways to free up operational cash.

Question every single expense. Look everywhere for savings. Do you need six incoming telephone lines? Do you need company box seats at the stadium? Do you need a company membership to the country club?

If you need them, keep them. If you have trouble justifying these expenses, cut them. Every single expense needs to be considered.


When you're done eliminating, reduce.

Replace your incandescent lamps with fluorescents. Shut off the lights in rooms that aren't being used.

Turn up (or down) the thermostat evenings and weekends.

Price awnings for your windows to cut down on the amount of direct sunlight, which will help your building stay cooler.

Save gasoline by assigning specific days to deliver, and planing the most efficient routes. (UPS has taken route planning to an art form by strategizing only right turns. It saves them time sitting at red lights).

Compare telephone service and long distance charges, and consider changing carriers. Do the same with your cellular carriers. You may find it less expensive to pay an early termination fee in order to move to a carrier with unlimited long distance, for instance.

How much can you reduce your inventory? It's listed as an asset, but it also ties up operating capital. Don't carry larger inventories than you need, and research just-in-time delivery with your suppliers. Stock slightly deeper in units that turn quickly, and reduce your holdings in low demand items.

We've already mentioned re-negotiating rent or reducing the space you rent, but consider that during a recession real estate prices fall. When landlords compare your low-ball offer to the zero revenue they're presently getting on unoccupied property, you may find it surprisingly easy to move to a less expensive facility.

What not to cut.

You won't have loyal customers without first having loyal employees. Your employees will understand if you cut back on non-essentials, but they will resent any reduction of their compensation. Cutbacks in contributions to retirement programs, or in holiday gift programs will create more long-term resentment than you will gain, short-term.


Reducing overhead is the last step.

Our seven steps to surviving, and thriving, in recessionary times, are:

Concentrate on business and customer service.




Cherish your existing customers.




Accelerate your advertising and PR.




Adjust your staffing.




Lower your profit margins.




Speed up cash flow.




Cut overhead.

Nothing will make your business recession proof, but implementing these steps will help you not only survive, but to profit during hard times.

And, one last thought.

Companies who aggressively promote themselves during economic downturns end up the big growth stories of the following few years.

Shall we get started?
__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Speed up cash flow - Surviving The Recession - Part 6 of 7

Cash flow is tied to profit and loss, but makes allowances for lags which happen between the sale, and payment clearing your checking account.

The problem of a slow economy can work to your advantage if your suppliers grant you credit.

It can be fatal if you offer credit to your customers.

For the next few months its going to be critical that you have an accurate forecast of your company's cash flows, and keep tight control over all of your customers.

Those folks who owe you.

Have you checked your customer's credit history, recently? You should. All of them, including those who have (so far) paid on time.

Those with questionable payment history can be expected to delay their payments again during a cash crunch. Be prepared to cut back on their credit lines, and keep a close eye on potential defaults.

As soon as you detect a problem, get them on the phone. It's much harder to ignore a phone call than a collection letter. Besides, your diplomacy will be even more appreciated in a one-to-one conversation.

Ask for a specific day that you'll receive payment, and telephone your client again if payment is not received when they promised. Most will pay to avoid another call from you, and another explanation.

Speed up the process.

You can help your financially healthy customers to want to pay faster by offering a 1 to 2 percent discount for payment within two weeks. Perhaps you could go as much as 4 percent for those who pay in cash at time of purchase.

Include your invoices with each shipment of goods, if possible. If not, be sure to send them on the same day.

The Internet has become another powerful cash management tool. You can speed the billing process by e-mailing your statements and invoices (not to mention that you'll save on printing and postage).

Accepting credit cards on-line or over the phone can also speed the process and reduce costs.

Collecting.

You're probably already computerized, but have you explored the credit controls and debtor reports that are usually built into accounting software? Get familiar with these tools, and use them.

It's as bad to dun customers who have paid on time as it is to ignore those who haven't paid and are past due. Whomever on your staff handles collections will need real-time data to keep customers from taking advantage of potential inefficiencies in your operation.

Do what you can to preserve customer relationships, but recognize that there's no benefit in maintaining a relationship with someone who can't, or won't, pay. And even your best customers may themselves have genuine cash flow difficulties. Be very careful not to extend too much credit and let them get even farther behind. Once the amounts owed appear impossible, even your best customers will become discouraged and stop trying.

If payments are lagging, consider a collection agency. Some will work for a percentage of the amounts they collect. Others will offer specific services for a flat fee.

Paying.

Now, go to your own suppliers and ask for extended payments. Ask for better terms in the form of lower prices, lower interest rates, or longer payment periods.

Renegotiate any leases or other contracts which will soon be coming up for renewal. Consider reducing the amount of space you're leasing.

Should you be changing long distance carriers, or looking into VOIP technologies?

Your personal credit.

Small business loans become much harder to acquire in tough times. You may be able to tap into your good personal credit to inject the liquidity needed to keep your company afloat. Keep close tabs on both your company and your personal credit ratings.

Perhaps you'll find yourself in a short-term situation, and a one-time infusion of cash could make a difference. If your margins are high enough that you could discount your prices, maybe you should be looking into outside financing (factoring). This is a process in which you discount your accounts receivable and sell them to a factor (a short-term lender), for cash. Since this cuts into your profit, use it only as an emergency measure.

Whatever you call it...

This economic downturn is likely to affect your business. Keeping enough cash on hand to pay all of your obligations, even those you don't expect, may help your company survive.
__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Lower Your Profit Margins - Surviving The Recession - Part 5 of 7

Supply and demand tend to be somewhat elastic. Changing one causes a reciprocal effect on the other. When demand drops, supply increases, and all too often consumption decreases, too.

In our terms, that means gross sales will head south as people determine they can't afford to buy as much of what you sell.

But truthfully, people will still buy.

They'll buy from someone. Will they buy from you?

Two years ago Best Buy cut their profit margins by three to five percent. They watched same store gross sales rise by 8.3 percent.

Last year Wal-Mart cut prices on back-to-school items by as much as 50 percent, and saw their sales climb by 6.5 percent.

This year it's Safeway and Amazon. As a result of their decreased prices Safeway's revenue increased 7.3 percent, and net income 11 percent, while Kroger and Supervalu dropped 1.8 and 18 percent respectively. Amazon cut prices and watched their second quarter sales shoot up 41 percent, doubling their profit in the process.

What can we conclude? Consumers will continue to spend, and lower profit margins can help you gain disproportionate share of that spending.

Those extra shoppers can actually push your gross sales to record-breaking territory.

Should you be discounting?

Yes. Yes, you probably should. Slow times are when you drop the prices on your products and services to motivate those customers on the fence to come shop with you.

Reduce your margins by enough to stop the bleeding. Ten percent? Fifteen? You'll have to keep close tabs on your costs, your volume, and your margins, but there is a number that will spur sales enough to keep you profitable.

But don't just drop prices. Make it part of a promotion so that shoppers take action NOW, and so that you'll have less resistance to raising those prices again in a few months when the economy improves.

Notify your existing customers of your new promotion. Buy advertising to inform potential customers.

One more thought:

Until the recession shows signs of easing, you'll need customer goodwill more than ever. And you can't gain goodwill with a sales event.

A sales promotion will attract customers. It will generate revenue. But, it will also draw those customers which will be the first to shop your competitor when he drops prices, too.

Goodwill results from personal service, which is created by your staff. Low prices will bring them in.

Good manners, friendliness, and appreciation will keep them coming back.

__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Adjust Your Staffing - Surviving The Recession - Part 4 of 7

As much as we dread any economic recession, there are economists who insist tough times force us to become more efficient, and that's a good thing. Perhaps this is most obvious when it comes to staffing.

In many retail businesses, and nearly all service businesses, people are the largest cost item. That's because in addition to wages and benefits, they spend your operating capital and consume other resources.

And, its common to add excess people during good times. You can't afford to overpay in payroll.

It's time to carefully evaluate your staff.

Sort your people into four groups – A, B, C, and D. This sort has nothing to do with rank. A great cashier may be more valuable than a so-so executive.

Your A group are the excellent employees that you couldn't get along without. Tell them how important they are.

The B's are good, consistent performers. Tell them, too, that they're important to your company's future.

The C group are average. Determine which of them can grow into the B list, and make sure they understand that their jobs are secure as long as they stay focused on helping your company through the rough times.

The D's are under-performers. They, along with the C's you can't grow, should be cut immediately.

And be sure to look at your management team. Can you combine jobs by reallocating work? High-paying unnecessary jobs should be the first to go.

What about your sales team? A good salesperson is golden in any economy, but more so when sales are so critical. Carefully evaluate your non-producing salespeople. Are they improving? Then consider them a valuable investment in your company's future. If you don't see that happening, cut them quickly. Its likely that your sales stars can take over any billing clients that need attention.

And remember, too, that attitude is critical in coming months. Negative employees, those that fight change, and those who's favorite word is “can't” are all people you can't afford any longer.


Do it, and do it all at once.

Make all of the necessary terminations happen at once.

Do not explain why the terminated employees are gone, but make sure the rest of the staff has specific reasons that you're keeping them. Make sure they know they represent your company's future.

If there aren't enough talented, motivated people remaining after the cuts, consider hiring temps, or even outsourcing some of the basic functions.


Now it's time to be a superior boss.

Teach your people how to do their jobs better. Catch them doing it right, and make sure the praise is sincere. As they become more successful, so will you.

Involve your whole staff. Make brainstorming of both cost-cutting and revenue generating ideas part of your group routine.

Lead by example. Be the first one in each morning, and the last to leave. Never take off early on Friday, or take excessive lunch breaks. Never justify any behavior that you don't want your employees emulating.

And always tighten your own belt, first. If employees wanted to make sacrifices, they'd have started their own businesses.

__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Accelerate Your Advertising and PR – Surviving the Recession – Part 3 of 7

This is a photo of a Boeing 747-200. This aircraft requires 219,000 foot pounds of thrust to get airborne, but only 100,000 foot pounds to cruise at altitude.

Think of your ads as the jet engines which power your company.

As soon as you remove the thrust, you've grounded your campaign. And that's a shame, since it typically takes four to six months for a campaign to start producing solid results.

Conclusion: Do not interrupt your advertising during tough economic times.

Study after study has delivered the same results: companies who pull in their resources and hunker down to ride out the economic uncertainties fall way behind when things get better.

Those same studies show that companies who aggressively pursue revenue in good times and bad leapfrog over their competitors in the following years.

This may take a certain amount of faith, because the evidence that your plan is working won't be available for months. If you're getting a bigger share of a shrunken pie, it may appear that you're standing still. At least, for now. When the pie grows, your share will grow, too.


Think of it as buying market share at a discount.

There are two reasons your dollars go further in slow times.

First, when you're one of the few voices still speaking to the market, your share of mind increases.

Second, when you're one of the few active voices, all of your media representatives will suddenly become VERY negotiable when it comes to rates.

The average recession in the U.S. has historically lasted eleven months. We're half way into this one, so during your negotiation be sure to lock in those new, lower rates for a full year. (Longer if the media will allow it).


What does advertising do?

No matter what the economy, aggressive advertising can:

Generate immediate sales

Upsell current customers

Provide new leads and prospects

And, don't overlook the long-term benefit: the more people feel familiar with you, the more likely they are to choose to do business with you.

The strength of your advertising, and the revenue which results from it, will depend largely on your focus up to this point.

Direct response will be less effected by the economy than will image advertising. The more transactional your messages have been (full of facts and details), the more you can expect business to continue.

But, if you've been using brand-oriented messages (service and commitment based), don't change them, since they tend to pay off better the longer you use them. (Remember, only 100,000 foot pounds of thrust to remain airborne). You will, however, want to create an additional transactional package to generate immediate cash, and to cover today's operational costs.


Focus on Value – and on family values.

At times of economic uncertainty, people tend to “cave.” They spend much more time at home with their families.

Consider using family scenes in your ads where possible. Dump the rugged individual image. Extreme sports and adventure are bad images during a recession.


Do your ads cultivate a trust factor?

Is the ad about you, or about your customer?

Are you talking directly to your customer?

Are your claims credible, or full of hype and sensationalism?

Do you make a claim with full intention of backing it up, or do you know you'll have to explain that claim because people will not understand the weasel clauses?


Can you use someone else's credibility?

The concept is known as endorsed mailing. You send a letter endorsing another business to your customers, and he does the same for you with his. Select your endorsement partners with care. If the other business is trusted by his customers, you'll be perceived as trustworthy, too.

Or, work out deals with other businesses to stuff their flyers into your merchandise bags. Of course, you'll reciprocate.

Or, get three or four other reputable companies together and share the cost of printing individual offers on card stock, then mailing them all to your own lists. This one is known as “marriage mail.”


Focus on your existing customers.

Focus on media that you've proven will provide a sufficient return on your investment. This is not the time to experiment with ideas that might work to attract new customers. New customers are more expensive.

Instead, apply the 80/20 rule, and invest whatever you need to keep your 20 percenters very happy with you.

Cut money out of any project that you can't prove return on investment (like trade shows, for instance), and use those funds to increase direct marketing to every customer in your database.


PR is golden.

Got positive quarterly results to report? Won any industry awards? Have a fabulous customer service story? Call your local media and share the news.

What's interesting about your story? If it's positive growth during a recession, financial editors will want to know how you did it. If winning your national award draws attention to your local business, most editors will want to play up local pride. And human interest stories always make great content – especially on a slow news days.

Public relations has two wonderful benefits: it's much more credible than advertising, and it's free (other than the investment of your time, and a few postage stamps or phone calls).


In summary:

When times are good, you should advertise. When times are bad, you must. But, don't be reckless about it. Make every dollar count, now, to pay off in multiple dollars over the next few years.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Cherish Your Existing Customers – Surviving the Recession – Part 2 of 7

How many times have we read that it costs 5 to 7 times as much to acquire a customer as it does to retain one? And yet, knowing that existing relationships are more profitable, we spend the majority of our planning and budget on new customer acquisition.

Unless you're a brand new company, quit it. Until you've optimized profitability of your existing relationships, you're wasting resources.

What are you doing to make your customers feel appreciated? Don't have time? WRONG! Appreciating people adds directly to your bottom line for three excellent reasons:

1.Your best customers buy more often
2.Their average purchase is two-thirds greater
3.They refer others in greater number

I love the Ritz Carlton's formula.

They offer a warm and sincere greeting, using the guest's name when possible. They pride themselves on anticipating the needs of each guest. They offer a fond farewell at the end of each guest's stay.

Do you treat every customer as if they were your best customer? Maybe it's time. Some of these basics should be automatic. Respect your customer's time. Keep your promises. Keep your customer in the information loop. Deliver the same day your customer purchases. Show genuine interest in your customer's satisfaction and success.

Look for additional customer touch points. Send “thank you” messages. Send birthday cards. Ask your customers about their dealings with your company, and ask their advice. Its flattering to be asked. Gather, analyze, and act on their feedback. Not only will your customers feel as if you consider their opinions valuable, you'll also improve your service.

You plan to remember special dates for your friends and loved ones, don't you? Birthday card for Grandma has to be mailed by Friday? Call your brother on his birthday? What are we going to do for the folk's anniversary?

Do you know your customer's birthdays? Hummm. Well, you do know the anniversary of their first purchase, don't you? Why not? Send a “You've been our customer for a year, and we appreciate you” card. Drop a hand-written post card to your best customers telling them of the new inventory you've just received. If you think about it, there are dozens of reasons to contact your customers.


Back to anticipating your customer's needs:

Do you sell products in a predictable order? Does your homeowner customer typically purchase a lawnmower, then a chainsaw, then a brush cutter? Send information about the next probable purchase to customers who haven't even asked about it, yet.

Is it likely that your customer needs accessories when she makes a specific purchase? If she's just bought a laptop computer, does she need a docking station for her desk? Does she need an MP3 player to store her downloaded songs? Would she appreciate a kit of cables, blank recordable media, and rechargeable batteries?

Can you introduce your customer to your service manager, and schedule her first preventive maintenance appointment?

As your customers own and use your products, they'll learn of other needs they haven't even suspected, yet. Help your customers to buy more from you by helping them to anticipate.


And when you screw up?

Proactively taking care of a customer's problem can actually improve your relationship. Customers expect you to care. They prefer you to competently fix their problem, now.

One of the best customer service formulas is “Whomever takes the call owns the problem.” In other words, the employee who is dealing with the customer is not allowed to pass that customer off to another employee. Of course, that also means you have to delegate authority to your employees to accompany the additional responsibility.

Owning the problem means making it personal. Not "We're sorry," but rather "I'm sorry. I will fix this for you.."


What are your customers worth?

Don't know? Here's a tool from Harvard Business School to help you with your calculations.


Last thought (for today):

No more excuses. Buy a box of “Thank you” cards, and start sending them today.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Focus on Revenue and Customer Service - Surviving The Recession - Part 1 of 7

Concentrate on Business.

At the base of the brain stem, in the primitive part of the human brain which controls breathing, sweating, blinking of the eyes, and other forms of involuntary action, is the amygdala.

This tiny region of nerve cells is the part of the brain responsible for the four “Fs” of human behavior: Fight, Flight, Feed, and Reproduce.

To many of us the uncertainty of the economy feels dangerous. When the human animal feels threatened, the amygdala kicks into overdrive, provoking survival behaviors. Under these conditions people look for security. They reconnect to their core values.

But, this is key: during turbulent times, people don't stop spending. They shop harder for value.


How are your customers responding to fear of the unknown?

Are you selling to other businesses? During a recession your business customers will still purchase equipment, services, or even advertising - especially when those have been proven to generate revenue. They will be much less concerned about brand building, and much more focused on making the cash register ring.

Do your business customers appear reluctant to buy new equipment? Then change your value proposition. Let your customers know that your mission is to protect their investment by making sure their equipment runs as efficiently as possible for as long as possible.

Are you selling to consumers? Tell your hard-core economic value story first. This is what will get them to consider your offering. Then bring in your core values, as well as the other value-added elements.

In hard times people are especially focused on doing the best they can for their families. Provide high value, AND make them feel good about doing business with you, and you'll find your customers showing loyalty to you that they won't show your competitors.


With less money in circulation, focus on revenue.

Contemplate smaller jobs that wouldn't normally excite you. In a slowdown your staff is likely to have less to do. Keep them busy with whatever business there is. Lose the “OK, we'll even do this, now” attitude. You'll be competing for those jobs, and the competition is likely to be stiff.

The rules of how business is done are changing. Focus your attention on maximizing revenue and on leveraging your intellectual capital. How much do you need to be in control? Think about outsourcing work that doesn't create revenue. Consider, too, that it's almost intern season, and help can be cheap.

Contact your customers and ask for referrals. Tell people you need more work. If they believe in your competence, they'll come through for you. Don't worry about looking as if you're begging for work. You ARE.


Service those customers.

With fewer customers you'll be tempted to reduce the number of customer service personnel. Many of your competitors will. Don't do it. Of course now is the time to cut expenses, but not in ways that touch the customer.

As Richard D. Hanks of Mindshare Technologies has said, “Be the business where a customer can actually get served quickly. Have the call center with the shortest "on hold" wait times. Let your business be the one that doesn't skimp on portion sizes, quality ingredients, packaging materials, or add-ons. Be the business that surveys customers on service satisfaction and continuously improves based on customer feedback. Let your business be known for urgency, responsiveness, and quality.”


The most important thing you can do.

Listen.

Listen to what your customers are telling you. Watch how they're behaving. Consider what it feels like to be your customer in this economy. What would you do in their situation?

Now, help them to do it.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Bad News For Business Owners

The economy is in trouble. Which loosely translates as people are spending less.

We're all feeling the pinch. That's obvious. And though no official source will admit it, we're now in the middle of the recession of 2008.

But there's also good news.

The average recession in this country lasts 11 months. Which means in about another six months we should start seeing signs of improvement. (I wasn't kidding when I called this "the middle." There's only another half a year to go).

The obvious question to small business owners is “How do we get through the next six months?”

Over the next week, I'll be posting a series of steps you should take to keep your business healthy. On second thought, forget "should." You need to implement each of the seven items on this list. They are:

1.Concentrate on business and customer service.
2.Cherish your existing customers.
3.Accelerate your advertising and PR.
4.Adjust your staffing.
5.Lower your profit margins.
6.Speed up cash flow.
7.Cut overhead.

These recommendations are simple.

Not easy, but simple. They are plans and processes that can help your business to actually thrive, provided of course, you're willing to be proactive when all those around you are hunkering down, hoping the unpleasantness will end soon.

Which will be your choice?

Meet me here tomorrow. We'll talk.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about helping your business thrive during an economic recession may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Trends and Cycles and Advertising In Them

Some trends are cyclical. Some are obvious. Sometimes both. Most are also predictable.

Are all trends cyclical? Hardly.

In the 90s, as growing demand and sophisticated technology converged to create the Internet, providing service to local subscribers was a great growth business. Look at the incredible growth of AOL, Compuserve, and hundreds of local ISPs throughout the country.

Today, however, Internet service is a commodity. There's no hope of a repeat of the dramatic growth curve of the last two decades.

Trend, yes. No cycle.

But the housing boom of the last few years? That was an obvious trend, with an equally obvious cyclical behavior. Equity growth can't continue at double digit rates indefinitely. By the time cab drivers and school teachers are buying second homes as investment properties, the boom is about over.

Trend? Definitely. Cycle? Equally definite.

We've seen this cycle before, haven't we?

We've seen what happens after a real estate crash. We all remember 1992.

In each phase of each cycle, some businesses will benefit, and others will be damaged. Real estate brokers and mortgage lenders did very well during the real estate boom. They won't be doing well in the immediate future. Bankruptcy attorneys and payday loan companies will, however.

While the housing bubble was rising, anyone hanging out a shingle got business. Advertising? That was a totally unnecessary expense.

Now that the bubble has burst, how many brokers have left the industry? How many have laid off their staff, and are again operating out of their homes?

Suppose you had been the one.

The one real estate broker in town who had realized that markets don't go up forever. Suppose that you'd started building your image as a problem solver, as the company who can get it done, back when times were good. Who would stressed sellers turn to today to help them get their overpriced homes off the market?

The time to build image, to create Top-Of-Mind-Awareness, is before someone needs your services.

When times are good, people may choose you because of your reputation. They may choose you as a result of your advertising. But, sometimes, you may simply be the beneficiary of so many people in the market that you're tripping over them.

That was a fair description of the recent real estate market in this country. It's about to be the description of the state of personal finance, too.

Trend? Yup. Cyclical? Obviously. Predictable? You tell me.

And, much like real estate brokering, and mortgage lending in the early years of this decade, do you suspect a dramatic increase in the number of bankruptcy attorneys and payday loan companies?

Yes. It's a safe bet (but probably a poor metaphor, huh?)

So, what's ahead for bankruptcy attorneys and payday loan companies? A year or so of so much business they'll trip over it. Followed by lean times when the “market correction” has played out.

What's my advice?

Don't depend on your Yellow Pages ads.

Oh, they're working well right now. By the time someone is in trouble and needs your services, they'll open the directory and search for any headline that promises them relief from their particular pain. When people open the Yellow Pages they've already decided to buy. But since they have no familiarity with you, and no preference for anyone, it's a crap shoot whom they'll buy from.

When the onslaught of people in financial trouble diminishes (as all trends do), you're going to have to start competing with other bankruptcy attorneys or payday loan companies for the small amount of business that's left. You're going to need an image in people's minds if you expect them to pick you. You can't build image in a directory listing.

Start now in other media.

Give compelling reasons that people who need your services should choose you. Start now when cash is flowing and investments in your future are less painful. Start now, because it takes time to influence the way people think.
__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about economic trends and advertising may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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