HWW #45 – Why The Recession Is Like A Potato

Hey Folks,

Welcome back to the HardWorking words newsletter.

You remember that old Gershwin brothers song?

I think it was called “Let’s call the whole thing off” and I bet you can hum it in your head.

Or heck, you can even sing it out loud. I promise nobody will look at you weird. It goes like this . . .

“You say Poh-TAY-to and I say Poh-TAH-to . . .
You say To-MAY-to and I say To-MAH-to
Poh-TAY-to, Poh-TAH-to . . .
To-MAY-to, To-MAH-to . . .
Let’s call the whole thing off.”

It’s a fun song, and to me at least, it seems to be a pretty apt metaphor for all the screaming and rambling going on in the news these days . . .

After all, I don’t care if you call it a Poh-TAY-To or a Poh-TAH-To, it still tastes great covered in butter and sour cream.

And it doesn’t matter if the chattering heads on the news rant about an “economic slowdown,” a “financial meltdown” or (GASP! EEK!) a *recession . . . it’s still a big, scary mess that’s going to hurt a whole lot of good people.

Now, I’m not saying this to get you down or to raise your anxiety . . . If the continued reign of “Beverly Hills Chihuahua” at the box office tells us anything it’s that people are looking for light escapism these days.

But personally, it drives me *nuts* when I see people dashing around, arguing semantics and rearranging the deck chairs on the titanic instead of taking the simple, proven steps they need to survive (and even grow their businesses) during the recession.

Because, hey, it’s a FACT . . .
* Unemployment is  EXPLODING . . . did you know that since January 750,000 Americans have lost their jobs? (Heck, I personally know 3 people who have lost theirs just in the last 2 weeks.)

* Businesses big and small are going to die sudden, painful deaths . . . think Lehman and WaMu were bad? Wait until the credit crunch and lack of consumer confidence trickles down to the everyday small and medium businesses that make this economy run.

* Retirement as we know it is DONE . . . Hear that crazy sound coming from the stock market? That’s the sound of millions of retirees (or soon to be retirees) watching their savings go up in smoke because of the unethical (and moronic) actions of the money men they trusted.

So say it with me, Potato, Potato, Potato.

And now take a deep, deep breathe and force a smile on your face, because . . .

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It’s Time For The Good News
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Even during the deepest depths of the Great Depression (and this one ain’t “great” and might never become so) . . .

* Over 75 percent of Americans were gainfully employed and had money to spend . . .
* Smart entrepreneurs *started* businesses, created jobs and absolutely thrived . . . .
* And even in the darkest of times people figured out how to mash up that nasty potato and get rich?

And you can do the same thing. But only if you take a deep breathe, think straight and act smart.

So here’s your Potato Survival Kit . . .

1. Figure out your 80/20

Most businesses get 80 percent of their business from 20 percent of their customers. Strangely enough, most customers have *no idea* what 20 percent is actually keeping them alive and waste all their time and effort going after the great unwashed masses.

Where are you really getting your business from? How can you serve them better? How can you give them better value? How can you get more of your most profitable customer?

2. Say Goodbye to Flash And Dazzle

Personally I’ve never been a big fan of flash and dazzle image advertising . . . but in an economy like what we’ve got today, relying on image to bring in sales is absolute suicide.

If you want to survive (and maybe even grow your business) during our current little problem you’ve got to focus on proven, tested marketing techniques that actually create sales and put money in your pocket.

If you aren’t currently using direct response marketing techniques to feed your business, it’s time to start. If you’re already hip (or semi hip) to the ways of direct response, it’s time to ramp up the testing and hold yourself and your marketing team to a much higher standard.

3. Give People What They Want

Gary Halbert is famous for saying “When All Else Fails, Give People What They Want.”

Not what you think they want.

Not what you want them to want.

But what they *actually* want.

I wrote a whole article on this in the past, but when times are tough it’s essential that you figure out what core desires your customers have and find a way to fulfill them.

Which might mean lowering your prices . . .
Which might mean changing the way you package and sell your products . . .
Which might mean giving away a whole bunch of value for free . . .

And which almost definitely means getting out of your comfort zone.

Later skater,

C

P.S. If you’re an employee drawing a salary week in and week out? You’ve *got* to start looking around for your own income stream. Right now even a stiff breeze is enough to cause most companies to lay you off. In a down economy, the only safe thing to do is work for yourself.

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