About the Chamber
 President's Message
By Julie Pastrick, President & CEO
Let's Talk Recession-Proofing Your Business
A recession typically is only acknowledged in hindsight. The classic definition of the “R-word” is a decline in the Gross Domestic Product for two or more consecutive quarters. The preliminary numbers for the first quarter of this year say there was actually 0.6% growth in the GDP for the first quarter of 2008.
But with a volatile stock market, home sales declining and credit tight, it is common to hear about businesses fearing a downturn.
Here are strategies discussed nationally in the Chamber industry to make your business recession-proof:
1. Stay in touch with your customers. Understand how this environment may be affecting their businesses and show that you care. Your strongest, most long-lasting business relationships may be built during the hard times and will allow you to profit even more when times get better.
2. Provide superior customer service. To get a larger share of a shrinking pie, you have to make sure that you and your employees create a positive experience for customers.
3. Develop strategies to land more customers. One of those strategies is using your Chamber of Commerce membership. Make sure your decal is prominently displayed so that potential customers know you are a member (when consumers know that a small business is a member of the Chamber, consumers are 63% more likely to buy from it). Take advantage of the many Chamber networking events to promote business-to-business relationships.
4. Continue to get the word out about your business. Do not drop your marketing or advertising expenditures. Or if you cannot afford a traditional advertising/marketing campaign, work on alternative means to get your message out, such as online newsletters, e-mail marketing or blogs. Also work on new partnership opportunities with other businesses for promotion.
5. Spend on hiring. Economic downturns are typically short-lived and it is more expensive to let go of employees and have to rehire them than to keep the employees you have and use the time for more training. You might also be on the lookout for talent that has been laid off from other businesses during downturns.
6. Entrepreneurs should keep personal credit ratings high. Borrowing, especially for small business, often depends on the credit rating of the business principal.
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