At Last, Sensible Advice From a Business Man with Success On His Mind...

Once again I find myself in California as I write this... and oh yes! It is raining! (I bet you didn't expect me to say that, did you? And I have to say - I am surprised too!)

I'm here to research attitudes of smaller business owners amidst the media hype around the current global financial crisis, recession, credit crunch or whatever you wish to call it.

As part of this research, I attended a BNI International Networking event earlier this week - on a sunnier day in San Diego :-). At this event a speaker gave a presentation on marketing a business in the current downturn. Interestingly, she mentioned two companies that grew out of the American Great Depression... Kellogg's and Wrigley's (you know the one... the chewing gum company!). So here is a bit of history for you:

The speaker explained how each of these companies had continued to market during this era and as a result have now become the leading brands.

At the time of the American Great Depression, Post was Kellogg's main competitor (I hadn't even heard of "Post"... until I got back to my condo and noticed that “Post” make my favorite breakfast cereal brand - Shredded Wheat). It seems that Post cut back on their marketing during the Great Depression... whereas Kellogg's did not.

Wrigley's main competitor was Beemans Chewing Gum (Who? Yes... that's what I thought! Apparently they are still selling gum to this day. Pardon my ignorance, but I don’t chew gum and my Google search seemed futile). Again, it appears Mr. Wrigley also continued to market and used the power of the press, and Beemans did not.

What really interested me, as a business woman and business coach, was that at the time consumers hadn’t stopped spending but simply looked for better deals. (This is something that the Press tends to forget to mention, don’t you think?) As a result, the companies providing better deals were the ones that became the market leaders after the depression ended. Why? Well, once spending picked up again, consumers remained loyal to those companies with which they were more familiar.

With all the doom and gloom about the credit crunch and financial crisis, I was DELIGHTED to watch Trusted Places founder Sokratis Papafloratis being interviewed on Sky TV News today. He said it is not all bad and that he gets a perverse sense of pleasure listening to the doom and gloom… a man after my own heart!

He openly admits that the past three years have been tough, however in this current economic climate he is finding it easier to recruit great staff (Recruiting difficulties is very common complaint that I hear frequently from clients on my Executive Coaching Programme).

He also said “If your business is going to be successful it has every chance even now.” And I agree.

This is a time for immense opportunity. A chance to separate the men from the boys (and women from the girls!). A chance to prove yourself in your business or your company. A chance to seek out opportunities in the marketplace – because they are there.

You may have heard how some people get rich on the stock market irrespective of market conditions... The same applies to you in this current climate. You can play victim and give up or you can seek out the opportunities and become the hero. Which path will you choose? (The majority will go for the path of least resistance - Don’t let that be you!)

It’s time to think differently and keep your focus on your business, focus on what you want (not what you DON'T want!) and focus on your goals. Yes, many businesses are struggling in the recession, but others regard it as an opportunity – and I believe that some larger companies are using the "recession" as an opportunitiy to lay off workers. This is, my own humble opinion, of course!

Now is certainly a time for "survival of the fittest". Of course it is going to be tough, but when you know what you want and you focus on that and let go of the distractions of negative attitudes, watching too much “doom and gloom” TV and newspaper reports and instead focus on what you want from your job or your business and ask yourself “Where’s the opportunity in this?” those opportunities will soon show up. I set my business up in the middle of a recession when business people abound were saying how bad things were. I made a healthy profit in my first year because I did NOT buy into the hype. I hope you won’t either. Whether you are employed or self-employ, debtfree or working toward that goal, you do not have to buy into the hype.

A friend of mine contacted me recently as said that her company had started laying people off. I asked her if she felt threatened by this. She said that she didn't but was secretly hoping she would be able to reduce her days from 5 days per week to 4 days per week. I suggested that she keep this in mind and take action to communicate this to her bosses (she pitched it as "doing them a favour") and guess what? She got what she wanted. Will you get what you want? Or are you too focused on what you DONT want, thus attracting that very thing you are afraid of?

For business owners here are some practical tips to apply if you want to thrive in the current climate:

Clear the clutter and rent smaller premises if possible – or better still work from home (it becomes a tax right off too!)

Keep an eye on your budgets – I’ve said this time and again in the DebtFree and Happy Programme, you have to get control of your cash flow. Have budgets in place and chase client payments quickly. If you are employed, work with your employer to bring the cash in more quickly… you’ll be seen as the kind of employee they have to hold onto.

Find cheaper more effective ways to market your business. The internet and email marketing is one way.

Negotiate deals – after all, everything is negotiable. Service providers are offering all sorts of special deals. Suppliers are cutting their revenues.

Until our next encounter....

Power to the People in Debt....

Yes I’m back! I’ve had hundreds of emails asking me why I’ve been so ‘quiet’ lately. No, I wasn’t abducted by aliens, but I’ve been an Alien…. spending some time in the USA (as a non-American I’m described as an Alien! I just love that phrase). So what exciting things have been happening? Lots! Let me explain …..

I’ve been researching the current policies of the banks and lending institutions. There has been a marked change in policy by the lending institutions in the way that they handle people who cannot afford to repay their debts.

You’ll remember, last year I commented on the new legislation that made it ‘easier’ to declare bankruptcy? Well now it seems that this has resulted in some lending institutions actively ENCOURAGING debtors (those owing money) to do this. In fact, some are even ‘selling’ this idea to those who may not need it if they simply had some help (educated guidance), support (freezing of exorbitant interest rates) and encouragement (‘we’re here to find the right solution for you’ not ‘whatever’s easiest for us (the lending institutions) so we can write the debt off and claim from our own insurance’.

At 5.30am this morning (my favourite reading time) I was reading a copy of “The Vegetarian” and an article on press coverage The Vegetarian Society received after it discovered Masterfoods - owners of Mars chocolate (candy) bars - was changing its production methods and it was not possible for the company to confirm which products were suitable for vegetarians because Mars, Maltesers, Snickers and other popular products were to be made with the use of animal derived rennet.

The article went on to explain how the Vegetarian Society asked its members to complain – SIX THOUSAND of them did so in a single week! That set about a massive press campaign and had even been discussed in Parliament.

Masterfoods reversed its decision within 7 days of the press coverage. That’s the power of our friends in the press.

What does this have to do with Debt Management …. patience please!

That got me thinking about the need for people like you and me to learn more about how institutions are changing their tactics. I truly believe the general public need to know that bankruptcy and IVAs are not the only option. And often it’s not the right option either. Many times I have quoted research, which suggests that the majority of people that get in debt do so again, shortly after getting rid of their original debts. There are exceptions of course.

Many of those that don’t get into debt again, I suspect, do not take out any kind of credit because of the fear of ending up in debt again (certainly this is the feedback I’ve had from clients when they initially contact me). However, this confirms the teachings in my course - that these people have a fear of money… and such fears result in a limited ability to create the kind of money one dreams of.

When I read the article about the Vegetarian Society members collaboration and how they forced the giant to back down, it proved to me that the power is still with the people. What's happening in the USA is the same - I salute Mr Obama's campaign tactics... it's resulted in major change, because the people took action.

You can do the same by complaining to your MP about the lack of education for the average person in debt who does not know where to go for impartial help. Let’s lobby for better education about money management and building ones self esteem, rather than simply forcing someone into bankruptcy and not dealing with the psychology of the self esteem issues that rise when someone loses almost everything. Power to the people!

And to back that up, I've made the decision to reduce the price of our DebtFree & Happy Programme to just £129.00 + VAT (sorry, can't do anything about the VAT), including postage and packing. And, on 1st December, you'll be able to get copies in MP3 downloads, for just £69 +VAT., so keep an eye on the website www.debtfreeandhappy.com