Almost all businesses today, big and small, are worried about what toll the current economic situation is going to take on them. Many are losing clients; employees are losing their jobs and companies are trying to see how best they can retain their present customers and attract new ones. However, there is one avenue through which a business can actually survive and make the most of a down economy. Here is an introduction as to why online businesses might help you to actually make profits in the present economic situation.

1.    At a time like this, even the consumer is feeling the pinch and is trying to get the most out of every dollar spent. Buyers are less quick to make purchases and wait to compare prices across a few products before making a final selection. Online businesses can offer this kind of competitive pricing and give consumers the convenience of making the comparison then and there. This is one of the reasons why online businesses are continuing to do well.
2.    Most online businesses start with very low overhead. These are either small businesses that have home-based offices or have much smaller offices compared to the big companies. As a result, they are able to offer better prices to their customers and still end up making a profit.
3.    Another important advantage that online businesses have over traditional ones is continuous accessibility. Their products or services can be bought at any time of the day and customers can have them delivered to their doorstep. Moreover, since online businesses know no geographic boundaries, their client base is spread all over the world, providing them with more opportunities to make sales and make profits.
4.    Finally, business owners can use online resources, most of which are free, to market their products and services. While traditional forms of marketing are not only more expensive, they reach out to smaller numbers of customers. The Internet makes it possible for companies to place their advertisements so as to reach a very large cross-section of the online population. Also, new technological tools have made it possible for them to track their marketing efforts and see what results they are yielding and where they need to make improvements.

It is therefore very important that regardless of what the nature of your business is, you should develop some aspect of it online so that you can avoid the effects of any future recessions and actually build on your profits during a down economy.

Part 2:
Making the Most Of A Down Economy: The Basics
The current economic downturn is not only affecting the common man but even big brand names, some of which are struggling to survive. It might therefore come as a surprise to you that we are actually talking about making the most of a down economy. We are not kidding – here are some basic steps that will help you to not just survive but thrive in a down economy.

1.    It is inevitable that nearly any time there is a slowdown in the economy, companies start to fire employees to reduce costs. However, they will not generally fire employees who are valuable to the company. If you are an employee, work to make yourself indispensable. Take on work and projects that others might dread doing. Work hard to get assignments from a higher level. Of course, it will be tough at first but soon, you will find yourself acquiring a higher profile and handling higher-level projects more often and more easily. If you own a small business, try to find a way in which you can make your products more attractive and save your customers money. Think of ways in which you can some products in bulk, reduce the pricing while offering it to customers and still end up with some profit.
2.    You should learn to reduce your expenses. While previously you may not have thought twice about spending something on an impulse buy, you should now be careful about every single expense. Cut down on magazine and cable TV subscriptions. Use the public transport or car pool to the office. Take your lunch from home and repair your equipment, rather than immediately replacing it.
3.    If you do get laid off or if business is slow, spend the time in getting yourself an education in something that will help you later. For example, you might try to get the MBA that you always wanted to but did not have the time for. You could also offer to help in other departments to understand how they function – this knowledge will help you later and make you a more valuable employee.
4.    In a slow economy, the first area where companies tend to make cutbacks is in sales and promotion when that should be the area where they focus more. Increase the amount spent on advertising and double the efforts made on increasing the quantity of sales.

Remember, the lessons that you learn during a slow economy will help you to not only survive but also to succeed.

Part 3:
Making the Most Of A Down Economy:
Frequently Asked Questions
A down economy brings out the worst fears in people. They are afraid that there is now less financial security and are not sure if they should even be investing in the market. If you, like many others, are worried or concerned about the economy and have questions about how you can make money in a down economy, the answers in our frequently asked questions section should provide you with some relief.

Is a down economy the best time to be buying stocks?

Most experts believe that a down economy is the best time to be investing in the market. The prices of many highly-valued stocks are fairly low and if you invest them now when the economy is down, you will make a certain profit once the economy starts to recover.

What other investment avenues exist during an economic downturn?

Though many of us think of spending less during a down economy, the wise thing to do is to save on unnecessary expenses and invest in services and investment options that would have previously been out of reach. For example, when the economy is doing really well, real estate prices were sky-rocketing and were out of reach for most of us. Now that prices have started coming down, you may want to think of investing in a good piece of real estate.

I work in the marketing department of my company and am one of the few ones not to be fired by my employer. How can I continue to ensure that I stay valuable to my company?

Just like you and me, companies too are looking to get more out of every dollar that they spend in a down economy. This means that any cost-cutting idea that you come up with will be highly appreciated by your company. Another way in which your company can make the most of a down economy is by concentrating on sales. Get your marketing department to concentrate more on converting marketing efforts into actual sales. Get in touch with present customers and inform them of any special deals or discounts first so that they stay loyal to your company.

I own a small start-up and am having a tough time getting sales. Could you offer me any advice?

Most small businesses overlook an important avenue of sales – through online means. Offering easy accessibility, global visibility and product availability at all times, online stores are a good avenue for not only maintaining your turnover but also for increasing your profits.

If you are a small business owner, you would be used to the usual ups and downs of the sales cycle by now. However, in the present economic situation, you may be more worried about the prolonged decline of sales.  The questions is: Are you just going to wait hoping that things will improve or are you going to take steps so that you can turn your business around? To help you move your business in the right direction, we provide you below tips that will help you make the most of a down economy.

·    Never forget the basics. Go back to the fundamentals that brought your business success. Review your mission statement and revise it if need be. Make a plan of what you need to do to get your business back on track and then do five things everyday that will help you move closer to your goal.
·    This is a good time to understand what the deficiencies in your company are. When sales are slow, take the time to overhaul your system. Organize your files and store your information more efficiently. Understand what has caused this disconnect between you and your customers. Concentrate on what you need to achieve and not on what is going on around you.
·    A down economy is also a good time to build on relationships with present clients. Take the time out to speak with them, hear their concerns and see what you need to do to retain their loyalty. If they have any suggestions or feedback to offer, see how best you can incorporate them in your product or services.
·    A recession is also a good time to take stock of your cash flow. Many business owners tend to panic and hold onto their money. This does not help the general market sentiment or your company’s reputation. Collect any amount that is due to you but also make all payments on time.

It is true that no one likes the present feeling of uncertainty about the economy. However, there is never a certain time in business and only by taking positive, decision actions will you make sure that your business makes the most of this down economy.

A down economy can be a tough time for most businesses. And most of them tend to follow the more traditional solution of reining in costs to battle declining sales. However, the more insightful ones will reduce unnecessary costs while increasing costs in areas such as marketing and promotion, bringing out new products and services so that when the economy starts to improve, the image of the company is fresh in the minds of people, leading to more demand of those products. Our collection of helpful resources will provide you with plenty of advice and useful tips for making the most of a down economy.

Websites

·    How to Make Money in a Recession
(http://www.businessknowledgesource.com/blog/how_to_make_money_in_a_recession_feature_article_026707.html)
·    The Innovation Engine: The Upside of Recession
(http://www.businessweek.com/managing/content/mar2008/ca20080313_646790.htm?chan=careers_managing+your+company+page_top+stories)
·    Enough’s Enough – How To Make The Most Of The Recession
(http://www.selfgrowth.com/articles/Enough_s_Enough_-_How_to_make_the_most_of_the_recession.html)
·    Making the Most of Now: Marketing During Recession
(http://advertising.microsoft.com/europe/AboutUs/default.aspx?pageid=2232)
·    Recession or Not, Making the Most of Your Tax Savings is Always a Good Idea
(http://advertising.microsoft.com/europe/AboutUs/default.aspx?pageid=2232)
·

Books

·    The 2009-2011 Recession Survival Guide: 414 Actions Businesses Can Take to Weather the Storm and Boost Profits by Michael McDermott and Stephen Hawley Martin – An economic crisis is the best time for a business to bring about some major changes in the system. While employees may be reluctant to change things when the going is good, industry leaders realize that during the economic downturn, people do not hesitate to come together and find solutions. Such positive actions will not only help the business survive the downturn but emerge much stronger than its competition.
·    Recession $urvival Guide: Low-Cost and No-Cost Strategies to Spend Less, Save More! by Campbell Norwood – The current economic crisis has hit most of us hard, with many struggling to pay off monthly utility bills, pay for insurance and pay off mortgages. This book does not preach nor does it give you a rosy picture of the future. It just gives you some practical, cost-saving solutions that you can use easily to save hundreds of dollars every month.
·    Your Job Survival Guide: A Manual for Thriving in Change by Gregory Shea and Robert E. Gunther.
·    A Recession Survival Kit for Small and Medium Consultancies: A Practical Guide with Twenty Plus Tips for Surviving a Recession by Tom Taylor, Ed Rhodes, and Rob Dee.
·    Beat the 2008 Recession: A Blueprint for Business Survival by Nicholas Bate.
·    Survive and Succeed…In Spite of a Bankrupt and Bailout Economy by Michael Perry.

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