Business Tougher Nowadays?

This article has cure, guaranteed!

I was talking to owner of a computer store yesterday. They’ve been in business eight years in a large metropolitan area. “Things are tougher today than when we first started, and I’m thinking of leaving business.” – that was theme of our discussion.

It brought to mind other businesses where I’d heard that line in past. The consumer finance industry back in seventies – even before Federal Regulation ‘Z’ (which put a cap on interest rates), oldtimers constantly lamented that things were tougher. Big companies bought out little ones and for first time, computers (not desktops) came onto scene while losses mounted even in Louisiana where interest rates where higher than any other place in galaxy..

While all this upheaval went on, one company, Coburn Finance, made "obscene" profits. How’d they do that? Well, since “oldtimers” were all saying that business was terrible, in Louisiana, they turned out experienced, disallusioned crews and hired young people who didn’t yet know that profits couldn’t be made. Within twelve months, there was a dramatic turnaround.

I have a lot of experience with used car industry. The common thread there is that someone will start up a new business with little money. They buy cheaper, “work cars” and deal with working class people. They make money. Several years go by and they “upgrade” their stock, and carry newer cars with a smaller profit margin. Also, their initial enthusiasm wanes. Talk to them now and they’ll tell you that “business is tougher nowadays..”.

When I sold life insurance, back in ’69 & ’70, I read numerous accounts of people having made millions during depression while most businesses languished and died. How did they do that? Same economic conditions, same industry, yet some succeeded while most failed.

I hear you saying, “But this is different. Now we have CompUSA, Best Buy, and online discounters to contend with.” Yes, you’re right, this IS different. The conditions you’re working in are no where near as bad as Depression of thirties.

Working in a localized area, you have countless opportunities to promote your business that mega-stores can’t begin to take advantage of.

You could offer free computer courses one evening or weekend afternoon each week. You could give talks to your local Chamber of Commerce to business people on how to best keep up with computer issues, upgrades, etc.

You could publish a monthly or quarterly newsletter on all local computer goings on in your area and throw in some "how-to tips". You could do a weekly radio show (local radio stations are often looking for interesting content). Offer a free spy-ware checking service one day each month. The ideas are limitless.

Oh, but you don’t want to invest time to give a “free” one-hour class each week? Or to do “free” spy-ware checking once a month, etc.?

When I was in business, I figured it cost me around twelve dollars to bring each new customer into my store. That was based on $800/week I spent on advertising in my Dallas/Fort Worth marketing area.

Consider that many newspapers will publish “free” services at no cost to you. Consider that maybe only twenty people take advantage of your free offer each time. Then you just got “paid” $240 for giving your “free” service based on cost of $12 per new customer.