How many people do you know who have increased their business this year?

I was discussing the economy and its effects on small businesses with John Heenan, a business associate in Belfast, Northern Ireland, and owner of TDS, a fulfillment company. His business has increased in 2008—the Year of the World-wide Recession! This was the result of adding many new clients and netted a gain in revenue for him, although many of his existing clients have had dramatic drops in volume. John is one of the many business owners who know that a bad economy does not have to mean a bad year for his business. Now is the time to get back to basics; increasing sales activities, cutting costs, taking care of existing clients and focusing on improving all aspects of your business.

This is showcased by one of John’s clients who has doubled his business in the past year including this Christmas season. The company is XKCD, a company that publishes its own web comic three days a week. Their business model has them generating most of their income from selling T-shirts, posters, and prints. When many business people hear of their success their reaction is that the Internet is a different world and that is why XKCD is successful. Closer examination, though, shows that it is not the Internet that drives their success but sound basic business practices. These include developing a loyal client base, dedicating time to what they are good at by outsourcing the areas that are not their core business, and relentlessly strategizing on how to improve their business. When John talks to the partners, they are always brainstorming with him on ideas that will move their business forward. This is a very different conversation than he has been having with most of his clients.

The theme continues with the other business owners that I meet. Talking to a mortgage professional, I was pleasantly surprised to hear that mortgage rates are great, refinancing was up, and he was off to the best month he has had in a while. Imagine my surprise when I talked to different broker who explained to me that it was impossible to do business right now because of the holidays. He said that it made no sense to call anyone because “everybody was away” on vacation or caught up in the season.  The story stays the same when I talk to realtors, contractors, financial planners and office equipment businesses. Within the same industries some people are being ravished by the economy and others are making the adjustments and moving forward.

I was fascinated by what the differences were between the two groups. So I began to ask professionals about how they were spending their days; what their thoughts and actions were. Some of the answers were obvious. Others were less so.

The professionals whose businesses were moving forward were fully aware of the present economic conditions but they were also aware of the fact that a lot of business was happening. If business was down 20%, that still left 80% of the sales activity. They saw it as their job to go and get the 80%. They did this by evaluating their business and figuring out where their opportunities existed. This might be by going back to the core of their business or it might be by moving into new areas that were opening up. They read books and articles on how to create more business and they attend seminars and workshops. They believe that their fate is in their hands and act accordingly. The second group believes they are victims of circumstances and that they don’t need to change themselves or their business; what needs to change is the economy.

The group moving forward rearranges their workday in order to do more revenue-producing activities.  The group going backwards reorganizes their desks and offices because no business is happening any way. The group moving forward looks at their business and figures out where they had let fat develop during the good times that they can eliminate now without hurting their business. The group moving backwards only reacts when they have to and then not strategically.

Which group you are in is your choice! Choose the group moving forward. Here are some suggestions:
1. Resolve to go to the bookstore, choose a book, and read it.
2. Find someone in your industry that is doing well in a different market and visit to get new ideas.
3. Attend a workshop or seminar, listen to a tape and resolve to be one of the businesses that in five years will say that it was during this time of difficulty that you made the changes that lead to your success.