Staying Afloat in Rough Waters

"So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." - FDR

Economic experts are predicting that we are about to enter a period of recession that is expected to last for at least the next 12 months. Inevitably, many undisciplined investors will react and move long term investments out of equity and into conservative investment when the market bottoms out, only to miss the ultimate rebound.

There is little difference where business owners and marketing are concerned. In fact, when the going gets tough, the smart steal business away from competitors.
Challenging economic, or down business cycles, actually help sort out inefficiencies in the marketplace.

For example, if a particular defense firm has a relationship with a manager in an insurance branch office, they may have had the luxury of being insulated from competition when markets were strong. Now, the same company may have tighter cost contraints from home office that will force that manager to consider shopping multiple firms that deliver the same, or greater value at more competitive fees.

A vendor that offers cost management solutions to law firms may find that their offering is a much greater business priority today than it was just a year ago and they may actually experience a reduced sales cycle.

Consider the fact that many of your competitors will decrease their marketing spend and there may be far less marketing clutter, as well as decreased demand, which means your dollar may take you much further. As always, look for opportunities where you will get the biggest return and bear in mind that the legal world is not impacted by discretionary spending like other industries are.

Remember, the markets will eventually improve, and what affects your business affects everyone else's also. Tip: The real battle is against other firms, not the market and will be decided by which company can promote itself better, offer more favorable pricing and deliver a superior product and/or service to its clients.

The auto industry serves as case in point and I will rest my case here.