Surviving The Recession - Small Partnership
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Surviving The Recession - Small Firm
Many partnership owners suffering a downturn on takings are currently weathering out the economic storm, cutting costs, prices and focusing on survival. On the other hand, some entrepreneurs are splashing in puddles taking full advantage and find opportunity in this global recession. These brave individuals are taking on more debt to launch new products and services, experiencing sleepless nights to increase their product portfolio.
These entrepreneurs will tell you their partnership has been revitalised, their focus has increased and come the end of recession, their company will experience extreme increase whilst others go bust. I was talking to an entrepreneur only last week, he owned a small recruitment partnership focusing on the IT markets. He explained that only 10% of their client base was recruiting, the other 90% were either making redundancies, freezing employment or in administration.
With a family to support he spent many hours researching other sectors, industries, products and services to see how they could use their current infrastructure and adapt it to generate income from a new sector. After 10 years recruiting in the IT industry he decided to introduce a consumer cleaning arm to the business and a wedding services partnership hiring wedding chair covers. By targeting the upper class consumer and implementing correct marketing strategies, they were able to create strong brand awareness in these demographics.
As the economy slowed and consumers pulled back, a small company in the child clothing retail sector decided the time was right to invest and start a new business. This company owner I also met last week at the same presentation.
She explained to me that with the new design clothing sold at discount prices within supermarkets and the growth of the internet, her customer base began to dwindle before the credit crunch started. Borrowing off her credit cards and utilising her company overdraft, she set up an online Nanny Agency recruiting experienced nannies across London. Investing £10,000 to build a customer website, off the shelf database and stationery, she then began to ask herself if this was the right thing to do.
After this she reached out to her potential clients, telling them about the services on offer and offering discounts to promote sales. From her knowledge and experience in marketing, she employed a leaflet distribution company to target the wealthy demographics in London. Advertising in local directories worked well, whilst all this was happening her domain name was becoming more and more popular. The organic google listing began to rise through the rankings, thus developing more sales leads.
From speaking to these 2 entrepreneurs, it is quite clear that if they held back and wasn’t brave, they could have lost everything. I guess borrowing money and increasing your debt can be very daunting, however the power of the internet makes researching a firm idea easier.
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