With the end of the year looming, U.S. government officials don’t appear to be any closer to a resolution for the pending “fiscal cliff.”
Falling off the cliff would most likely mean a recession according to some economists.
What happens then? A more dramatic version and acceleration of what’s already happening: the middle shrinks.
People still buy necessities, but the middle freezes up, afraid to spend discretionary money.
Even on necessities, Dan Kennedy says, speaking from experience…
“The profit margin goes away, as merchants at the bottom battle over consumers’ shrunken spending power with price cutting as the only weapon…big companies even sell products below cost just to keep factories, stores, and offices open, thus crushing small businesses.”
The good news is there is a way to offset pending gloom and doom. However, you’ll want to start preparing for it now.
Today we’ll take a look at a few suggestions from Dan Kennedy and GKIC members who no longer worry about things like this—having learned how to create what Zig Ziglar called your own “personal economy.” (You can read Zig’s description here: Zig Ziglar: One Of The Best Gifts You Could Ever Receive)
It’s something you can do too.
Here are the top three ideas for preparing your business so you can offset the fiscal cliff.
Niche your business. GKIC member and co-owner of Cater Galante Orthodontic Specialists Dr. Donna Galante says between 1997 and 2007 her business was growing gangbusters. In fact it was growing 25% a year minimum and at times doubling. Then in 2007 her business tanked. She says, “The phones stopped ringing and in 12 months’ time we had lost 30% of our revenue and production.” In one of the hardest hit industries in the country, orthodontics, which is considered an elective, was down 47% nationwide.
She says, I kept thinking about what Dan was always saying about how “there are riches in niches.” So Dr. Galante decided to specialize in the niche area of Invisalign, a proprietary orthodontic treatment which uses a series of clear, removable teeth aligners as an alternative to traditional braces.
Things turned around very quickly for them as her practice became one of the top 1% producers of Invisalign nationwide in 18 months’ time.
Recession-proof your business. Look no further than Dan Kennedy to know how to recession proof your business. In his book, No B.S. Marketing to the Affluent, Dan says “Those in the middle are the most affected by recession. They tend to be living at their means or above their means, yet spending only about 60% on necessities. In recession, they stop spending the other 40%. They just cramp up. So merchants selling to them don’t see a 5% or 10% drop; they get whacked with a 40% drop. Even price cutting doesn’t help much.”
His advice? “Trade up.” The richest 20% of the population account for more than 60% of spending in our economy. It’s just as easy to sell to the affluent masses who are least affected by tough times.
To get started, set yourself up to attract the affluent and their money. First transform your business to appeal to and attract the affluent. In other words, find out where the money is and then go get it. To market to the affluent, study who your affluent customers are, where they are, what they buy, why they buy, and the best ways to get into sync with them.
Learn how to “speak to sell.” GKIC member and co-owner of Bradley Communication Corp., Bill Harrison gives this advice”: “Learn how to speak to sell.” He says, “In 2002, we almost went out of business because of the post 911 recession. We were really hurting and my brother went to a conference he had spoken to before and had never come home with more than $800. That year he came home with $67,000 because of what we learned from Dan about platform selling.
GKIC member and owner and chief instructor of Unified Martial Art Academy, Dwight Woods says his business would have folded had he not learned how to persuade people about the benefits of his products and services. He says, “I always taught for the love of the art form and thought that selling was evil. I’ve realized that you are no longer a hobbyist once you are in business, so you better learn how to sell.
In a recession, when you get someone on the hook, it’s essential to be able to move them to asking you what they should buy as quickly as possible. Whether you are speaking to one or to many, selling in person or through the mail or online, you must find your voice and learn how to speak to sell.
One way to make this easier is to eliminate your competition before you get into a selling situation. In Dan’s sales system, detailed in Sales & Persuasion Strategies, he stresses the importance of eliminating the competition by making you, your product or service a foregone solution—this way you are dealing with clients, customers or patients who are pre-determined to buy from you and you alone. This not only makes the sales process go faster, but you no longer have to compete on price.
Don’t wait to see what happens. Get prepared now.
So what are you doing to prepare your business? Share your ideas in the comment section below.
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