Is It Time To Be Confident in This Economy?
A soloist wrote to me recently asking what to do about investing in new marketing materials and equipment for his business. "Is this economy turning around enough to spend money now, or should I be stashing it away to make it through the summer?"
While I'm not a seer or a financial analyst, my reports from soloists around the country are telling me that yes, things are picking up. For those who have been feeling the sting of lingering post-9/11 economic doldrums, this is good news. However, it's difficult to say what lies ahead. Several economic factors must be taken into account, including persistently high US trade deficits, public and private debt levels, and widespread geopolitical risks. Throw in the volatility of an upcoming Presidential election, and the economic climate is as difficult to predict as, well, the weather.
However, whatever the economic environment, several general guidelines apply. First, I always encourage soloists to make wise decisions about equipment investments. If you can put a piece of technology to work in your business within the next 90 days and it will generate income, buy it. If not, wait -- because it will likely be cheaper, faster, or better. Also, if your clients won't see something, avoid spending money on it (particularly in the early stages of your business). For example, there's no need for fancy office furniture if clients won't see it. In contrast, spend the money on things that will: a) generate new business; b) present a professional image that will bring you new business; and c) continue to fuel your marketing momentum so that you get new (and repeat) business. You can see where the focus is here: invest in revenue-building solutions.
As for marketing, most folks who've followed my work know that my philosophy is that successful solo marketing begins with a "marketing mindset" -- that is, to think of *everything* you do as marketing. This means from the way you answer your phone to your email signature to the fancy four-color brochure you may have. Marketing is an integrated activity and it must never cease -- no matter what the economic climate. So whether we're poised for an economic uptick or settling in for a few more months of doldrums, the strategy is very similar: make careful purchasing decisions and continue your marketing efforts without fail. Soloists are able to weather a wide variety of economic challenges because they can be nimble; maximize your flexibility by making wise financial decisions.
Working Solo is a registered trademark, and The Frugal Entrepreneur, SOHO Connection, the Business Gym, and the Personal Pathfinder Program are trademarks of Terri Lonier. All other trademarks are the property of their respective holders.
This newsletter is designed to provide small business information, and is sent with the understanding that we are not engaged in rendering legal or financial advice. If expert assistance is required, the services of a licensed professional should be sought.
Copyright 2004 Terri Lonier. All rights reserved.
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