In Times Of Recession, Go Online
Fortunes are made in good times. They're also made online in "bad times"
Look at the host of opportunities. Costs are low. Media prices are down. Rents are down. There are great deals on equipment. Talented people are available for hire at reasonable prices. Many of your competitors will fold - if not in practice, psychologically. They will attribute all their challenges to the 'bad economy' and give up, instead of actively seeking solutions and workarounds. Entrepreneurs who use their minds - and their courage, not just their intellects - will find no shortage of opportunities.
The one single industry that is slated to benefit most from the recession, in my opinion, is undoubtedly, the online industry. More and more businesses are turning to the web and realigning and reinventing their business plans to benefit from the online model. It makes perfect sense to set-up an online store with a shopping cart application and online payment gateway. Cost reduction, going global, efficiency of operations and economies of scale are guaranteed to succeed.
It is quite obvious that when people have more time on their hands they turn to the internet. That translates to a larger audience for organisations that are after a captive audience. As companies worldwide decide to cut back on advertising spend in print and outdoor media, they will still have to reach their potential customers in some way. There is a concerted effort on their part to rely on online media for its cost effective USP and the fact that internet advertising is less expensive and is supposed to be easier to understand in terms of evaluating its efficiency as there are various technologies enabling the advertiser to see how people interact with his ad on different sites.
A recession is also a time to establish bonds and hold hands with your existing clients. An online community site helps forge relationships and provides a good platform to engage creatively in a Win:Win relationship with your customers.
People are looking harder for the best price and forcing companies to work harder for their money. With house prices falling and peoples hard earned equity getting ever more squeezed, certain online estate agencies are providing a creative solution (self-sale.com).
Online searches for the term ‘second hand’ has increased by 22% while ‘DIY’ and ‘how to’ queries increased by 25%, according to Hitwise. Some of the online businesses that are thriving in current times are auction sites (Flogit4u.com), used products sales portals (findyourgooseberry.com), second income generator sites (Peopleperhour.com), cash back sites (Quidco.com) and not to forget online shrinks!
Send your comments to sharad@cyber-gear.com.
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