- Coronavirus economic downturns recessions.
It's front of mind for business owners right now.
And in this video, I want to come up with some remedies
for what you should be thinking about
for your business to make sure
that you have sought your success
and grow it for what's gonna be the hardest recession
that many of us have seen in our lifetime.
If you have entrepreneurial stuff and you're passionate
about growing your business, as I am passionate
about growing your business and indeed my business
please make sure you subscribe to this channel.
Give us one of those thumbs up.
And as we're going through it, if you've got any comments
or questions about what I'm talking about
you want some clarification hit it in the comments below
and I will answer them,
but let's talk about economic downturns
and recessions in business in general
your job as a business owner is to
find ways to give your customers pleasure
and to solve pain like a headache.
What do people really want?
They want some paracetamol.
How can you be someone's paracetamol
to their headache.
It's pain and pleasure
that business owners need to be thinking about crucially.
The marketing department of your business.
People have still got the same amount of money in the world.
There's the same amount
of money and what it just lands in different pockets.
Your job as a business owner/ marketeer
and we're always marketeers of our business.
If you want to be a super successful business owner
you've got to think like a marketeer and an operator second
Marketeer one, Operator second.
Sad fact of the reality is most business owners are
in the operating mindset rather than the marketing mindset.
How do you win in business?
You solve people's pain
and give people more pleasure.
In a recession,
I want to give you this fact 2008,
Cadbury's, their profits went up 30%.
Cadbury's are the little picture
of a chocolate bar there for me, chuckling 10.
That's my video editor extraordinaire.
Their profits in 2008, were 30% up.
Now, why is that?
Because people are looking
for cheap ways to give themselves a bit of pleasure
rather than going out to an expensive restaurant
or paying for that expensive holiday.
The three C's do well
in recessions, candy, cosmetics and contraceptives.
Yes. Apparently the facts show
that more people are having sexy time at home to recessions.
And so they are buying more contraceptives.
There you go.
But that's a fact for you go
and Google it because Google is always right, isn't it.
So you need to be thinking
about what do you solve with problems in your marketing
and try not to go down the feature route steep.
Let's think about our little analogy with that paracetamol.
Who cares about the ingredients of the paracetamol
and what SME business owners try and do is they try
and tell every feature of their business rather
than the headline of their business.
The paracetamol solves the pain of your headache.
And that's all you need to say.
You don't need to say it contains EZ, YZ formula
this and chemical that
and do that for this and do that for that.
People don't care about that stuff.
And in fact, if you give too many people features
of what your product does, then you'll likely lose them.
Now, once they know what you do and they're really
into what you do, they might want to know the features.
Once they've made a decision to buy from you.
So let's take this further.
I've got my laptop now
we have some ideas that I've been working on,
on how you can pivot to profit in a recession.
It's all about thinking like this.
We've got to make some money
because a lot of people go through
Oh God, you know when the doldrums, no.
Do you remember the still same amount of money in the boats?
You just got a pivot into where the profit is.
We built two brand new businesses on the back
of this economic downturn,
Our Christmas tree village
and our farm shop and our Christmas shop tree
really three new revenue streams.
Here's a little fact for you.
I found out that most millionaires
on average have seven different multiple income streams.
So this is a chart now to build multiple income streams
as your original business might be taking a bit of a dip
because of recession, not every business, but some are.
There's a good time to start pivoting.
Amazon probably got an Amazon prime
for AR and getting on Amazon and selling more online.
Most people just don't have a good law online presence.
This is a chance to
if you're a B2B business, maybe it's time to go B to C.
Maybe if you're selling on your own website
you've been talking about, Oh, we should get on eBay.
We should get on Amazon.
We've done all those things.
So try and think about those things.
Remove risk, wherever possible.
That's what smart businesses do in a recession.
Can you get your products and services on salary term?
Can you pay people for results on what they get?
Especially when it comes to hiring people.
So many people that are really good companies are going bust
and they're now on the market.
Can you look for those people
and say, look, I'm going to pay you a really low
basic, but huge bonus package.
If you get the results from the business,
remember as a business
you need to be a lubricant to a salary, not a friction.
When people are
in a recession, they've got their money in their pockets.
Should they be buying from A, B or C?
The company that has the most lubricant to do business
with them are the ones that we that win.
Remember action leads to traction.
What action are you taking to get traction in your business?
Are you just relying on the same old results?
I had someone on my podcast today does SEO.
He's trying to get leads and said
well, what leads, what action have you taken to get them
up there in a bit more of what I've always done before?
I said, well, no, take more action.
Go and see people get meetings with people.
And he turns around and says,
people still having meetings in coronavirus
type of stupid.
I've had four separate meetings with
four different people today.
There's still stuff going on in the world.
Don't worry about being perfect.
Get some south in then and improve on.
I've definitely learned.
This is what you can get away with in a recession.
I think about our Photoshop.
We started this.
We just had stock on tables with plenty tablecloths on now.
We've got all the slinky shows
and all the lighting, but we started
we got some south in, we put in sounds before operations.
There's a temptation in business to
always make sure you've got perfect operations
and then worry about the South.
No, no no.
Get the South in.
And then put the operations in place.
Remember when you're in a recession
and economic downturn, or even in the good times
you've always got to innovate your business
or you're going to evaporate.
People are looking
for innovation all the time, and this is a good chance
in a recession to look for innovation.
And there's new, great ways of doing your business.
The Corona virus to me has killed a lot
of our business, but it's made some massive improvements.
Our pumpkin village, for example, last year
that basically people come and buy pumpkins
from us this year because we've got staggered.
The amount
of time people come in, our average customer value is going
up because it's more relaxed
because we tell them people's come certain times.
And because people are paying.
Their pain now they come at certain times,
they're paying three pounds each.
It's mind-boggling what a difference
that is to our business.
So there's always opportunity there
let's look at some businesses that do well
in a recession, and in my belief
are recession proof look for businesses that
are love, want and need
people love the business,
want the business, they need the business.
For example, Day Nurseries, food, take aways.
People love a take away
They need to eat
That's a really bad example
They want their take aways, but they don't need it.
But grocery stores for example,
are a fantastic thing because people love food.
They want food, they need food.
So look for love, want and need businesses.
Discount retailers do really well.
Be specific where possible when starting out.
So maybe you want to do that.
You can't just try and be BNM and pound land
from the off cause they're broad spectrum
but you could be a discounting retailer just
for fishing discounting retailer for small hobbyists.
There's always riches in niches
for business owners and SMEs, grocery stores do really well.
We've all seen supermarkets soar to success profits.
That test goes up, up, up,
as more people buy than going out for dinner and stuff.
The C businesses, I spoke about them earlier.
Candy contraceptives and cosmetics may like go
like gangbusters
Auto repair and maintenance.
People are repairing more
than buying new people and have an extension to their homes.
More than buying.
I know we've got a stamp duty holiday
at the moment and properties going through the roof
but that's only going to be until the end of March.
And then the real tough two year recovery will start.
Daycare, day nurseries.
We've done really well.
As more parents go and do two jobs now.
Online marketing companies that get paid on results.
If you can be
in a results based company for whatever you do
you will do well in a recession, like group of works.
And now I hate group on a watch or for business.
Like it's terrible
but they get paid on results only when they sell.
Is there anything that you could do
in your business where people only pay you on results?
That means
that people are already, and if you know you're good
and you can get the results for companies
think about how you could become, do something like that.
Accountants and tax firms, they do well.
Coffee shops and cafes.
People feel like they're going out.
The five pound 50 average customer value via going
out for a business for a meal, a restaurant 25 pounds.
Fast food goes like the clappers.
And that's what I was getting mixed up
with Love, want and need earlier.
Yeah. McDonald's fish and chips.
That's cheaper than going to a restaurant.
So fast food does very well.
Movie theaters, play centers and days outs over holidays.
Anything like that cheap days out always do well.
Our indoor play center business sort
throughout the last recession education on online courses
people need to upscale to get going again.
This is a great time for entrepreneurs
Being nimble, fast and approachable
with your marketing and you will win.
Be flexible and talking about online education
for being a business owner.
Have you checked out my entrepreneurs university?
It's my online training platform
where I help you grow your business
and you can try it free 14 days.
And have me as your coach.
And after that, it will only cost you 49.99,
as cheap as chips.
Last recession proof, free 14 days www.jamessinclair.net.
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And if you want to get some more ideas
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I'm James comment below.
Let me know what you think.
How are you doing in your business?
I'll see you soon.
Bye-bye.
(upbeat music)