Day: June 10, 2020

Huawei and the U.S.-China Tech War

The 4 Ps of Marketing: A Step-by-Step Guide (With Examples)

The 4 Ps of marketing…

You’ve probably heard about them from a friend, a textbook, or even at school.

I know it sounds like a boring topic that’s common sense, but there is more to it than meets the eye.

And no, it’s not just for large companies… the smaller you are, the more important for you it is to leverage the 4 Ps.

So before we dive into it, let’s first break down what they are…

What are the 4 Ps of marketing?

The 4 Ps of marketing is a famous concept that summarizes the 4 basic pillars of any marketing strategy: product, price, place, and promotion.

It sounds simple and it really is (the harder part is implementing it, which we will get into later).

The idea behind the theory is that if you implement them, you will generate more sales. But sadly nothing is that easy. :/

4 ps of marketing visualization

The origin of the concept, also known as marketing mix, goes back to 1960 when McCarthy introduced it in his book Basic Marketing: A Managerial Approach.

I know that’s ages ago, but it is just as valid today.

Let’s dive into each P…

Product

The product is what the company sells.

It might be a product like a soft drink in the beverage industry or dresses in a clothing store. Or these days it may even be software like Ubersuggest.

Ubersuggest

It could also be services, such as consulting or a paid speaking gig or even a therapy session.

In short, the product is everything that is made available to the consumer.

In the 4 Ps strategy, defining this means understanding what your offer needs in order to stand apart from competitors and win over customers.

In other words, what makes your product so great or unique? Because if you don’t stand out it’s going to be hard to thrive.

For example, you may know about my product Ubersuggest, but you probably already know about a handful of my competitors?

So what’s the big thing that makes my product stand out from everyone else?

I don’t focus on features… I don’t have 100s of reports… instead, I focus on usability. My goal is to make Ubersuggest really easy to use, especially if you are new to marketing.

On the flip side, my competitors focus on ad agencies and really advanced marketers. I built something for a different target market, even though I am in a crowded market place.

How to create an amazing product that your customers love

I want you to do something simple… go to Hotjar, signup for a free account, and run a poll. Just like the one below.

poll

I’ve been running polls for a while now, but if you are starting off I would ask open-ended questions like:

  • What’s the biggest problem I can help you solve? (This will give you an idea on what your product needs to do)
  • What’s your favorite marketing product and why? (You’ll want to replace the word “marketing” with whatever industry you are in… this question gives you an idea about who your competition is and what they are doing right)
  • Why did you come here today? (This will tell you why people come to your site and what they are looking for)
  • How can we make our product better? (This is great if you already have a product up as you will get real feedback)
  • What don’t you like about COMPETITOR ABC? (Replace competitor ABC with your competition’s name… this question tells you where there is an opportunity)

I want you to pay special attention to the last question. It really helps you identify how you can differentiate yourself from the competition.

Now, before you go and build a product (or make yours better if you already have one), don’t invest too much time and money without getting feedback.

For example, if I were to add a new feature to Ubersuggest, I wouldn’t just build it. I would get it designed, show you first, get feedback, and then adjust from there.

That way I won’t waste months’ worth of time building a product you don’t want to use.

Price

Price is simple, it refers to how much you charge for your product (or service).

And although it’s simple to understand, it’s really hard to come up with the “right” price. The one that doesn’t just drive the most amount of sales but also drives the most profit.

The real question is, how do you want to be perceived?

Amazon wants to be the place where you can get the best-valued products from A to Z. And of course, delivered at a fast pace so it’s convenient for you.

My buddies’ company, Imperia Caviar offers high-end caviar at low prices. He’s able to get the same caviar that big brands charge thousands of dollars.

caviar

You would think that by having a cheap price he is cheapening his brand, but instead, he is bringing transparency to the market and educating people on how caviar isn’t really expensive… it’s actually just a marketing ploy.

I take a similar approach to Ubersuggest. I don’t think marketing software and education should be so expensive. So I give a lot away for free or super cheap.

Do you think that has cheapened my brand or hurt it? Well, let’s look at the data:

trends

I guess not. 🙂

But on the flip side, would Ferrari be Ferrari if their cars were selling for $10,000? Probably not.

How to pick the right price for your product

By no means am I a pricing expert so I don’t want to tell you what to price your product at. But I will tell you to read the Price Intelligently blog. Those guys know to price like the back of their hand and they have dozens of articles that will teach you exactly how to price your product.

It’s important to think about pricing, especially if you are in a crowded space. My rule of thumb is: If you are in a new space or already a leader, you can charge a premium amount.

On the flip side, if your space is saturated and you are late to the market, you’ll want to consider having a cheaper price (if not the cheapest price).

Some questions you should ask yourself are:

  • What would be the lowest price you are willing to sell your product?
  • What would be the highest price that consumers would be willing to pay?
  • How sensitive to price are your customers?
  • What prices do current leaders in your niche charge?
  • How does your price compare to the competition?

Place

“Place” is another word for location.

As they say in marketing, it’s all about the… location, location, location.

I once ran a tech conference in Los Angeles called Twiistup.

twiistup

It was a cool event with LA vibes and celebrities. I didn’t create the event, I bought it out years ago.

But you know what? It failed.

It wasn’t because the event wasn’t good, it was more so that I moved it to a terrible location.

I moved it from Santa Monica, which is the heart of the Los Angeles tech scene, to the valley, which is an hour drive from where all the tech companies are located.

In other words… location, location, location.

You have to pick a location where your customers are. Don’t expect them to come to you, you have to go to them.

How to pick the right place

The web is this virtual world. And although the location (place) may seem irrelevant, it really isn’t.

Just think of it this way… if I put my company all over Tiktok, what do you think would happen?

Well, I wouldn’t generate any new clients for my ad agency because none of my ideal customers are on Tiktok.

tiktok

Do you think a bunch of 16 to 24-year-olds are looking for marketing services? If we offered services where we helped you get more social followers, sure… but we don’t offer that.

Think of the platforms and places your ideal customers are and be there.

That could be a specific site like Google or even an offline venue like conferences. Don’t try to bring your customers to you, go to where your customers are… it’s much easier.

Here are some simple questions to ask yourself so you can find the right place.

  • Where is your customer?
  • Which outlets (online and offline) sell your product?
  • Which distribution channels are currently working for you?
  • Do you sell directly to businesses or consumers?
  • Do you sell directly to your end customer or do you have to go through middlemen?
  • Where are your competitors?

The customer should always be at the center of your decision, but it’s important to also include aspects of the other Ps that we discussed.

Promotion

My favorite P… and the one I tend to blog about the most.

Promotion!

Once you’ve optimized the previous 3 Ps, it’s time to promote your offer.

And to be clear, when I talk about promotion I am not just talking about getting your brand out there… I am talking about generating revenue.

What’s the point of promotion if you can’t drive sales?

But with all of the channels out there on the web, which ones do you start with first?

Well, I want you to go here and put in your competitor’s URL.

traffic analyzer

If they are big, you’ll see data on how much traffic they are generating… which keywords they rank for on Google… the sites that link to them and talk about them… and even how many social shares they are generating.

If they are small, you won’t see any data. You’ll have to put in a bigger competitor.

Another site that you should use is Similar Web. Put in your competitor’s URL and you’ll see tons of data on how they promote themselves.

similarweb

What’s cool about the web today, versus when I first got into online marketing, is that there are tons of tools that make your life easy. So use them to your advantage. 😉

How do you promote well?

I want you to start off by asking yourself the following questions:

  • Which channels does your audience use the most to consume information?
  • What kind of message tends to be more effective when promoting your solutions?
  • What is the ideal period for promoting your product?
  • Is there any concern about seasonality?
  • How do your competitors plan and carry out their promotion?

Again, you can use the tools I mentioned above to get a jump start. Another thing I would highly recommend is that you look at Facebook’s ad library.

fb ad library

It will show you the ads that your competition runs and, more importantly, the messaging that they use.

Now, I won’t bore you to death about promotion tips as I already have tons of blog posts on that. But I would start off with these:

Conclusion

The 4 Ps of marketing may seem boring, but they are essential.

Without them, how are you going to differentiate yourself from the competition? It really is important to stand out.

No one cares for another me-too company. We all want something unique, special… something we resonate with.

And how do you get that? You leverage the 4 Ps.

How are you leveraging the 4 Ps of marketing?

The post The 4 Ps of Marketing: A Step-by-Step Guide (With Examples) appeared first on Neil Patel.

Top 5 Elk River News Websites To Follow in 2020 (City in Minnesota)

Top 5 Elk River News Websites
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1. Star News

Elk River, Minnesota, United States About Website Star News covers the latest local news, sports, weather, government issues, education, community happenings, and more from the city of Elk River. Frequency 7 posts / week Website hometownsource.com/elk_river..
Twitter followers 1.5K ⋅ Social Engagement 52 ⋅ Domain Authority 68 ⋅ Alexa Rank 208.7K View Latest Posts Get Email Contact

2. Elk River, MN | News

Elk River, MN | News Elk River, Minnesota, United States About Website Get the latest news, information, important announcements, city alerts, upcoming events and more from the official website of Elk River, MN. Frequency 5 posts / week Website elkrivermn.gov/CivicAlerts.aspx
Facebook fans 3K ⋅ Twitter followers 459 ⋅ Domain Authority 35 ⋅ Alexa Rank 2.7M View Latest Posts Get Email Contact

3. WCCO | CBS Minnesota » Elk River

WCCO | CBS Minnesota » Elk River Minneapolis, Minnesota, United States About Website WCCO – CBS Minnesota is Minneapolis’s source for breaking news, weather, traffic, and sports. Get all the local news and information you need plus other fun stuff across the city of Elk River from the team at WCCO and CBS Minnesota. Frequency 1 post / month Website minnesota.cbslocal.com/tag/e..
Facebook fans 366.1K ⋅ Twitter followers 230.5K ⋅ Social Engagement 109 ⋅ Domain Authority 92 ⋅ Alexa Rank 1.7K View Latest Posts Get Email Contact

4. Bring Me The News » Elk River

Bring Me The News » Elk River Minneapolis, Minnesota, United States About Website Bring Me The News is your one-stop-shop for the most important, interesting, and entertaining news and sports happening right now in Minnesota. Subscribe this feed for the latest news and updates in Elk River, MN. Frequency 1 post / quarter Website bringmethenews.com/tag/elk-r..
Facebook fans 151.7K ⋅ Twitter followers 40.1K ⋅ Social Engagement 751 ⋅ Domain Authority 67 ⋅ Alexa Rank 34.7K View Latest Posts Get Email Contact

The post Top 5 Elk River News Websites To Follow in 2020 (City in Minnesota) appeared first on Feedspot Blog.

Beat the Economic Downturn With Credit Score Hacks Every Business Owner Should Know

It’s looking a lot like the novel coronavirus is leading to an economic downturn. But you can still hack a great business credit score. Here’s how.

Do You Know These Credit Score Hacks? They’re Even More Important in an Economic Downturn!

Economic downturn got you down? Beat the recession with these credit score hacks for every business owner.

Establishing business credit means that your firm acquires chances you never believed you would. You can get all-new equipment, bid on buildings, and cover the company payroll. And you can do so even when times are a bit lean. This is especially helpful in holiday firms, where you can go for months with simply negligible sales.

Because of this, you need to focus on building your company credit. Improve and maintain your scores and you will have these chances. Do not, and either you do not get these business opportunities, or they will set you back you a lot more. And no entrepreneur wants that. You need to understand what affects your company credit before you can make it better.

Recession Period Financing

The number of US banks and thrifts has been decreasing gradually for a quarter of a century. This is from consolidation in the marketplace along with deregulation in the 1990s, reducing barriers to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets focused in ever‐larger financial institutions is problematic for local business owners. Big banks are a lot less likely to make small loans. Economic recessions suggest financial institutions become extra mindful with lending. The good news is, business credit does not rely upon financial institutions.

Economic Downturn Credit Score Hacks: Your Payment History is Important

Late payments will impact your small business credit score for a good seven years. You will need to pay your business debts off, as fast as possible and as fully as possible. If you are able to do so, then you can make a very real difference when it concerns your credit scores. Make certain to pay without delay and you will enjoy the rewards of punctuality.

And pay your personal debts off as fast as possible. Pay them off in full if you can. Check Hack #3 for why this is so vital.

Your payment patterns and history are a driving force in your overall credit score. Over time, paying your bills on schedule will help establish your company as one that pays their financial obligations. This will undoubtedly help push your rating up and show other business you are a low risk.

If you pay attention to none of the other credit score hacks, you will still do well to practice this one.

Economic Downturn Recession Credit Suite

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Economic Downturn Credit Score Hacks: Keep Your Debt-to-Income Ratio in Check

Credit utilization rate just means the amount of cash you have on credit which is then divided by your total available credit.

The more debt you have on your plate, the more invoices you have, as well as the less disposable income you have. If your total debt approaches or surpasses your income level, then you’re probably to be seen as high-risk.

Keep your debts in check and regularly pay them off to maintain a healthy balance between what you make and what you owe.

Lenders commonly do not wish to see this exceed 30%. So for every $100 in credit, do not borrow on more than $30 of that. If this percent is rising, you’ll need to spend down. And be sure to work off your financial obligations ahead of borrowing more.

Economic Downturn Credit Score Hacks: Your Personal Credit Can Have an Effect on Your Corporate Credit

Are you having a bad business year? Then it could end up on your consumer credit score. And in case your small business has not been in existence for too long, it will directly impact your corporate credit.

Nonetheless, you can unlink the two by taking measures to split up them. Open a separate bank account just for the business. And use your business credit cards for your business only. The same is true in reverse – don’t use your personal credit to pay business expenses.

Keep this up, and the credit reporting agencies will start to treat your personal and small business credit separately.

Also, make sure to incorporate. Or at least file a DBA (doing business as) status. You can also take care of your company’s invoices with your company credit card or checking account, and make certain it is the company’s full name on the bill and not your own.

Your own personal credit is fair game when it concerns your Intelliscore Plus rating. Running a company is hard work, yet don’t let your personal finances suffer. Make certain that you remain on top of your personal monthly expenses. Stay clear of unnecessary credit inquiries. And do not compromise your personal credit for business needs.

Economic Downturn Credit Score Hacks: Credit History Length Matters

This is in essence the length of time your firm has been using business credit. Of course newer businesses will have brief credit histories. While there is not a lot you can specifically do about that, do not fret.

Credit reporting bureaus will also take a look at your personal credit score and your own history of payments. If your own personal credit is excellent, and especially if you have a fairly lengthy credit history, then your individual credit can come to the rescue of your business. That is, you did not just get your first credit card recently.

Naturally the opposite is also right– if your personal credit history is poor, then it will impact your corporate credit scores until your company and consumer credit can be split.

Economic Downturn Credit Score Hacks: The Credit Reporting Bureaus Can Get it Wrong

Irrespective of what your credit score is, it is crucial that you continue to be thorough and examine your personal and business credit reports. This can help you discover possible issues and stay informed by yourself credit profile.

Just like as each and every organization out there, credit reporting agencies like Equifax and Experian are only as good as their files. If your business’s name is like another’s, or your name is a lot like another business owner’s, there can possibly be some mistakes.

So keep an eye on those reports, and your small business report at Dun & Bradstreet, PAYDEX. Stay on top of these reports and dispute charges with documentation and clear communications. Do not just allow them to stay wrong! You can correct this!

And while you’re at, it you should also be keeping track of the credit reporting bureau which exclusively handles personal and not business credit. So that is TransUnion. If you do not know exactly how to pull a credit report, do not worry. It is easy – just Google to find the links to the CRAs.

Economic Downturn Recession Credit Suite

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Economic Downturn Credit Score Hacks: Use Your Credit

Keeping your financial obligations low remains sound advice. Still, opening and responsibly making the most of company credit accounts can help you broaden your available credit and enhance your credit score.

Economic Downturn Credit Score Hacks: Monitoring Your Business Credit For Less

Know what is happening with your credit. Make sure it is being reported and address any errors ASAP. Get in the practice of taking a look at credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.

Update Your Record

Update the data if there are errors or the details is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So for Equifax, go here: www.equifax.com/business/small-business.

Economic Downturn Credit Score Hacks: Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any problems in your records. You can fix mistakes in your credit reports. But the CRAs often want you to dispute in a particular way.

Get your business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report inaccuracies usually means you send a paper letter with copies of any proof of payment with it. These are going to be documents like receipts and cancelled checks. Never mail the original copies. Always send copies and retain the original copies.

Fixing credit report mistakes also means you specifically detail any charges you contest. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you mailed in your dispute.

Dispute your or your small business’s Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute inaccuracies on your or your company’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B wants you to dispute by phone. So their PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.

Economic Downturn Recession Credit Suite

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. Get money even in a recession!

Economic Downturn Credit Score Hacks: Takeaways

Hacks for your business credit score are really a fancy way of saying one thing. Be responsible. Pay your debts on time. Don’t put too much on credit. don’t neglect your personal credit. Keep your accounts open. Jump on any errors you find. Use your credit. Monitor what happens with it.  Follow these suggestions and you will be well on your way to an excellent business credit score.

Beat the economic downturn! You can prosper, even now!

Once you know what impacts your small business credit score, you are that much nearer to building improved corporate credit. Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The COVID-19 situation is not going to last forever.

The post Beat the Economic Downturn With Credit Score Hacks Every Business Owner Should Know appeared first on Credit Suite.

The 4 Ps of Marketing: A Step-by-Step Guide (With Examples)

The 4 Ps of marketing… You’ve probably heard about them from a friend, a textbook, or even at school. I know it sounds like a boring topic that’s common sense, but there is more to it than meets the eye. And no, it’s not just for large companies… the smaller you are, the more important …

Develop Content Strategy – Streamline Your Content Production

Over 95% of marketing nowadays takes place on online platforms. Simply having an online presence is nonetheless not enough to get people on your website and social media pages. You need content that keeps people glued to the pages, sharing links to the pages, and coming back time and again. Churning the right content is, …

The post Develop Content Strategy – Streamline Your Content Production appeared first on Business Marketplace Product Reviews.

5 Most Common Mistakes Business Owners Make in a Recession

Mistakes happen.  When under pressure, even more mistakes happen.  If business owners have ever been under pressure, it’s now.  COVID-19 has thrown the economy for a loop, and business owners can’t makes heads or tails of it.  Before you do anything else, take a look at the relief options available, including the Paycheck Protection Plan.  Then, consider these common mistakes business owners make in a recession, and how to avoid them.

Avoid these Common Mistakes Business Owners Make in a Recession to Make it out of the Recession Twilight Zone

A recession can be a hugely stressful time.  Not only can finances be in shambles, but the stress can take a toll on many other things as well.  During a recession it can seem that all is lost, but avoiding these common mistakes business owners make in a recession could help.  It certainly won’t hurt.

Imagine you wake up tomorrow in the twilight zone, and it lands you right in the middle of recession land.  You may be feeling the effects of the recession even now. Here is what not to do if you want to survive. Avoid these mistakes, and your business could just make it out alive.

Common Mistakes Business Owners Make in a Recession: Moving Too Fast

While you definitely have to spend money to make money, it is necessary to be a little more careful during a recession.  Spend money cautiously and only when the payoff is certain to avoid this and other common mistakes business owners make in a recession.  That’s not to say that you can’t ever take a risk, but definitely don’t do it too quickly.

For example, if you have the opportunity to purchase inventory at a cut rate, it may seem the best idea is to purchase as much as you can.  After all, if you sell it at the same price as before, you will still make a larger profit because the cost to you was less.

This is one of the common mistakes business owners make in a recession, because it makes sense when you are not in a recession.  However, with people having less disposable income to spend, it is possible that that inventory will not move. Then, you are stuck with inventory you cannot sell, and a lot of it.

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The Better Option

Considering the financial hard times, take a minute to evaluate things.  Why is there a cut rate on the inventory? Is the wholesale provider is having a hard time moving it?  If that is the case, you may have the same problem. Pay attention to your customers and your current inventory.  Do you see any downward trends?

There a few options here that may be more beneficial.  First, consider not stocking up on the inventory at the reduced rate.  Maybe buy a little more than normal, but focus instead on the option the reduced rate gives you to lower your own prices.

The better decision is to evaluate how the recession is affecting the industry and the markets around you.  Then, make decisions about how much of the discount inventory to purchase based on that. From there, you can make a plan for how to make the most of the discount.  

That may mean that you have a sale offering the cheaper inventory at a price below what your competitors are offering.  Another option is to purchase enough to lower prices for the duration of the recession.

The only way to make these decisions however, is to have thorough market research.  That may cost money as well, but it is a much better use of the funds than wasted inventory.  It will take time, but the slowdown will definitely be worth it.

Common Mistakes Business Owners Make in a Recession: Failing to Plan

One of the most important parts of running a business is planning for the unexpected.  This includes planning for a recession. That is one of the most common mistakes business owners make in a recession.  They panic, and either forget their plan, or they realize they never had a plan.

The first way to avoid this mistake is, obviously, to make a plan.  If you have a plan, now is the time to put it into action. Don’t panic.  Take stock of your expenses and revenue. Adjust expenses accordingly as much as possible.

Keep a watch on the market to see how your particular industry is responding to the recession.  Use what you learn to tweak your plan as necessary. The point is, if there is a plan, use it. If not, it’s never too late to avoid this one of the most common mistakes business owners make in a recession.  Make a plan and put it into action.

Not Having Fail Safe

You always need a safety net.  Unfortunately, one of the common mistakes business owners make in a recession is not realizing this until they are in the middle of a recession.  Technically, that is the mistake made before the recession.

The “in recession” mistake is actually not trying to do something about it.  If you catch the problem soon enough, you may be able to take action. What type of “fail safe” do you need?

Credit Card

A credit card that is open can help you float until you find a more permanent fix for whatever woes the recession is causing you.

Line of Credit

A line of credit works similar to a credit card in that it is a revolving line of credit, but it does not carry the same types of interest rates and terms that a credit card does.

Whether you get a credit card or a line of credit, it is important to remember to use it only to get you over a hump.  It has to be paid back, and you need to be sure you can do that. These are tools that could be useful if you have customers that cannot pay invoices, or if you need to take advantage of a special deal like in the example above.  

However, if you find you are continually using these “safety nets” to simply run the day to day operations of your business, you need to do more. You are going to have to find the leak and shore it up.

What if…?

There are a few other options if you have already waited too long.  For example, you can consider factoring your invoices. This will allow you to access cash immediately, often without a credit check.  Also, you do not have to worry about paying the money back, as your lender will collect the payments on the invoices directly.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Be aware however, they will purchase them at a premium.  You will not get the full value of the invoices, but if you need the cash fast, it may be worth it.

Another option is a merchant cash advance.  If you accept credit card payments, a lender may advance you funds based on your average daily credit card sales.  Then, they collect repayment from those future sales, typically daily.

Common Mistakes Business Owners Make in a Recession: Trying to Take on Too Much

It is easy during a recession to try to save money by cutting staff.  While there may be a time for this, one common mistake business owners make in a recession is trying to save money by doing everything themselves.  

That just is not always the answer.  If you are trying to do the day to day operations as well as the bookkeeping, cleaning, advertising, and even purchasing yourself, you are going to burn out.  Not only that, but things are going to start slipping through the cracks. Bills will be missed. Orders will not get entered. Invoices will not get sent.

These things are just as detrimental to a business as paying employees you cannot afford.  What is the better option? The first thing is to not let go of a bunch of employees out of panic.  Slowly and carefully evaluate each job. Do you have any positions that can be combined? If so, do you have employees capable of accomplishing the tasks of both positions?  

Better Options

Is it possible to cut one position, split it between two others, and raise the pay of the other two but by less than what the cut position was making?  No one likes to let go of good employees at all, but taking the time to evaluate all of the options is much better for everyone than a massive axing party.

Additionally, consider which jobs can be outsourced.  Outsourcing can save money because you do not have the additional payroll costs that go along with an employee.  Janitorial services, bookkeeping, and social media marketing can all lend themselves well to outsourcing depending on the situation.

Common Mistakes Business Owners Make in a Recession: Thinking You Can Do It All

Another of the common mistakes business owners make in a recession is not playing to their strengths.  This is similar to taking on too much, but for different reasons. While it may seem like you are saving money by not paying someone else to do certain things, it can definitely cost money to do things that you are not good at.  

We all have certain strengths, and not knowing yours can be a money drain. If you are not good with the books, don’t try to do them.  A mistake in that area can be very costly. If you are not great at managing people, assign that task to a trusted employee. Know your strengths and your weaknesses, and delegate tasks accordingly.

Do not let the fact that you are operating in a recession cause you to try do work in areas where you are weak in an effort to save money.  It won’t work, and during a recession it could cause even more damage than it would otherwise.

Cutting Prices Too Soon or Too Much

When things start to look scary, it is almost a reflex reaction to cut prices. The idea is that If you offer a better deal, more people will do business with you.

This isn’t always the case. If your products are not at a price the market supports, it might work. Otherwise, you may see an increase at first, but long term it isn’t going to be a good thing.

People are willing to pay for a quality product. If you are struggling, it is best to figure out what they are buying instead of what you have for them. It could be the demand just isn’t there.

In a recession it is quite likely that people just do not have the disposable income necessary to purchase your product or service. In fact, it is even more likely than not.  The answer then is not necessarily as easy as a price cut.

A price cut could work, if you can maintain quality.  A better option is to be flexible and figure out what they are able to spend money on.  For example, if you specialize in premium quality boutique clothing, consider adding inventory that is not as expensive.  Call it something that sounds catchy, like “economy boutique,” and you just may have something that will get you through the recession.

In the restaurant business, consider offering specials at reduced rates to make what you have a better deal for customer that they can better afford.

Forgetting How Much Quality Counts

Truly you get what you pay for, and a hugely common mistake business owners make in a recession is that they forget that.  This rings true in all aspects of business from inventory to supplies, and even employees.

There is a fine line between saving money and sabotaging yourself.  You cannot purchase lower quality inventory, charge the same, and expect that profit increase to hold.  Word will spread. You can’t pay less than the competition and expect your employees to be top notch.

Keep in mind that for you and your customers, quality counts, always.  You get what you pay for, and your customers expect to get what they pay for.

Common Mistakes Business Owners Make in a Recession: It’s Never too Late to Build Business Credit

If you don’t already have established business credit, that can go a long way toward helping your business through a recession as well. Incorporate your business and get an EIN from the IRS.  Make sure your business has a different address and phone number from your own, and sign up for a DUNS number from Dun & Bradstreet.

Once these things are done, check into doing business with starter vendors.  These vendors, such as Uline, Quill, and Grainger will offer invoices with net terms. They do this without checking your credit score, and they will report your payments to the business credit reporting agencies.  

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

In this way, you can begin to build business credit even during a recession.  If you make your payments on time, you can continue to build it by applying for credit from the retail credit tier, the fleet credit tier, and the cash credit tier.  Then, if you need funding to help get you through the recession, you will have it. It takes time, but it’s never too late to start.

Avoid these Common Mistakes Business Owners Make in a Recession and Keep Your Business Going Strong

Of course, there are no guarantees the recession won’t pull you under, but there are things you can do to make it less likely.  If you are careful to not make these common mistakes business owners make in a recession, and pay attention to what is going on around you, your business just may have a fighting chance of making it out of the recession twilight zone intact.

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