Small Business Recession Growth Strategies
On June 19th I was interviewed by Diana Ransom, a reporter for "Smart Money" , on strategies that small business owners can use to grow their business during a recession. Here are my four suggestions:
1. Look to the internet for sales growth. According to the National Retail Foundation, internet sales grew at a 21.8% rate in 2007, while total retail sales grew by only 3.9%. With gas prices above $4.00/gallon nationwide, strong internet sales trends growth is expected to continue.
2. Consider selling your goods or services outside the United States. The dollar is very weak versus foreign currencies, which means that United States products and services have a pricing advantage versus those of many other countries. For business owners with no previous export experience who are unsure of their first steps, a good place to turn is the U.S. Commerce Department's Gold Key Matching Service which will help by making introduction to experts and potential trading partners, quickly and affordably.
3. Grow by acquisition. For small business owners with expansion plans, acquisition can sometimes be more affordable than the cost of building new offices or facilities in new geographic locations or markets. This may be especially true during a recession, when business values are generally depressed. It is important, however, that the acquisition make strategic sense.
4. Gain market share with stellar customer service. If your business is not poised to expand through new channels, geographies, or by acquisition, you'll have to earn your sales growth by winning away share of market from your competitors in your current market. One proven way to do this is by offering superior customer service than your competition.
1. Look to the internet for sales growth. According to the National Retail Foundation, internet sales grew at a 21.8% rate in 2007, while total retail sales grew by only 3.9%. With gas prices above $4.00/gallon nationwide, strong internet sales trends growth is expected to continue.
2. Consider selling your goods or services outside the United States. The dollar is very weak versus foreign currencies, which means that United States products and services have a pricing advantage versus those of many other countries. For business owners with no previous export experience who are unsure of their first steps, a good place to turn is the U.S. Commerce Department's Gold Key Matching Service which will help by making introduction to experts and potential trading partners, quickly and affordably.
3. Grow by acquisition. For small business owners with expansion plans, acquisition can sometimes be more affordable than the cost of building new offices or facilities in new geographic locations or markets. This may be especially true during a recession, when business values are generally depressed. It is important, however, that the acquisition make strategic sense.
4. Gain market share with stellar customer service. If your business is not poised to expand through new channels, geographies, or by acquisition, you'll have to earn your sales growth by winning away share of market from your competitors in your current market. One proven way to do this is by offering superior customer service than your competition.
posted by Rudofsky Associates at 6/26/2008 06:50:00 PM 
