Closing Business during the so called credit crunch!
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Speaking to clients and prospects recently (within last couple of months) its been really interesting to hear their concerns in relation to their business and the so called ‘credit crunch’. I’ve read and heard so much in the press that I though it was about time to voice my own opinion.
Yes, I agree that the market isn’t great and it’s certainly not how it was back in 2006. Food prices have increased significantly with Marks and Spencer’s this week reporting a 5% decrease in sales….wow a whole 5%! Due to the ridiculous increase in fuel prices we have lorry drivers driving their HGV’s through Westminster protesting outside the Houses of Commons. House prices have reach a plato and inflation is continuing to rise at a steady rate, so I do understand why people and business owners are, and rightly so, looking over their shoulders and waiting to see what happens next. However, with that said there are still plenty of business’s out there vying for, creating and driving good business and therefore reaping the rewards. The market I believe it still pretty strong, there is plenty to play for and it the dawdling and protractive companies that will be left behind!
Many companies I’ve spoke to have had a bumper 2008 and this is set to continue. I believe that you have to be conscious of what’s going in the economy but focus on what you can do to help drive your own business forward rather than waiting to see what happens. If this means buying a new piece of software or investing into an online advertising strategy then so be it, if it will provide you with a return then do it?
The hype and media surrounding the credit crunch I believe is a bit of farce and inevitably puts the willies up businesses looking to expand or invest. It makes them think twice which isn’t always a bad thing but can additionally then stiffle their business growth. If one Managing Director of a company who I spoke to on Tuesday is puting her marketing budget on hold for 3 months as she is worried about the economy, looking at the bigger picture there will be plenty more Managing Directors like her doing the same and the end result is FACT the the economy will suffer! A vicious economic circle built up by media hype!
Working in the digital marketing sector I feel blessed at times like these as it enables me to understand what’s happening on the ’shop floor’ as normally if things are tight the first area that business’s cut back on is their marketing budget, which has never made sense to me and is another story for another time! However Digital Marketing is different in the fact that everything you do is measurable, if you spend £100 on a PPC campaign and see a return of £200 then that’s good business. On top of this I sell our professional services which makes a huge difference. Service is critical to any business and often make you stand out from the competitors.
So when when I’m trying to close business and prospects mention the state of the economy and the so called ‘credit crunch’, I suggest to them that most of it is media hype, business growth is all about taking the initiative and focusing on seeing the end results. Sell your added value services, product features and core benefits, focus on that and I think people will soon start to see the wood through the trees and change their negative perception concerning the so called ‘credit crunch’!
I found your site via Google while searching for home internet business marketing opportunity and your post regarding Business during the so called credit crunch! | Generate UK – Digital Marketing Blog looks very interesting to me.
There is no such thing as the ‘credit crunch’.
How is your life any different now than it was this time last year?
Hi Andy, thanks for your comment.
Interesting view. If there is no such thing, why is it referred to? Are you suggesting that it is a media hype? Banks have certainly stopped lending, businesses and consumers are certainly finding it more difficult to raise credit and there is certainly a slow down on the number of mortgages on offer.
No credit crunch?
Interesting article. Opposing and also agreeing to somewhat of Andy’s argument I believe that the credit crunch is certainly used in the wrong way. However, because of the housing market collapse because of former lending practices, the the financial sector suffered because of “bad loans/mortgages” which caused the other sectors in the equity markets to suffer and now we are seeing a domino effect.
I think whose want to close of business should take a few step before make a final decision. First, try to cut the cost first, after that not to make unnecessary expenses and try to make a saving.
It is a struggle for every company during the recession but on the positive side it separates the well run businesses from those just floating along because the economyu is doing well. In a way it streamlines the way businesses are run.