An R-rated Post

Reader Discretion Advised.

This post contains uses of the word ‘recession’ that may cause panic attacks in small business owners. Readers are advised to continue reading as the following post may contain tips for growing your business even in challenging economic times.

Christine Beck of Aiko Designs asks: “I recently left my day job to pursue my own jewelry business full-time and the economy isn’t in the best shape at the moment — do you have any suggestions or tips for those of us starting out in challenging economic times?”

First off, Christine, your jewelry is gorgeous, classic and feminine - love it. Big kudos for being FEARLESS enough to follow your dream. Starting a business is a lot like having a baby – it’s never going to feel like the right time and you’re never going to feel 100% ready. It is crazy scary, no matter what the market conditions are like. So the advice I have for you isn’t just practical, it’s emotional too. Here goes…

1. Be a sales maven. Everyone is worried about cash flow right now. That doesn’t mean that no one is going to buy your jewelry, but it does mean that there is more competition for your customers’ dollars. That means it’s time to start working on your sales skills. If you truly believe in the quality of what you do, now is the time to start promoting yourself and your business. Here’s the good news. If you can master it now, think about how good you’ll be when the economy loosens up! In the meantime, here are 3 books that will help you hone your skills:
   • How to Win Friends and Influence People by Dale Carnegie is a classic for a reason.
   • Secrets of Great Rainmakers by Jeffrey Fox is quick, easy and will remind you never to give up!
   • The Sales Bible: The Ultimate Sales Resource by Jeffrey Gitomer. The title says it all.
2. Shore up liquidity. Here’s the bad news. The mortgage meltdown has made banks less willing to extend credit, even to the most creditworthy borrowers. Now here’s how it affect you. Plan ahead. Don’t wait until you NEED the money to apply for credit. Make sure that you at least have a line of credit. At the very least, go in to the bank and apply for overdraft and then a line of credit. Don’t get in over your head right now. Make sure you allow enough time to apply and fix anything that could be getting in between you and the financing you need.
3. Get a cheering section. Don’t be surprised if people in your life warn you how difficult it is to start your own business, especially in a market like this. They will amplify that whisper of doubt in your head until you can’t think straight. Surround yourself with people who believe in you no matter what.
4. Learn the word ‘arbitrage.’ When the economy is tough, many talented people are looking for work or are looking for contract work between gigs. For you, that could mean access to skilled people at relatively low costs. Think creatively!
5. Watch your costs. No need for extreme austerity. Just take an afternoon and comb through your expenses. You’ll be surprised at how many small changes you can make and save yourself some dinero.

One more thing. Since you’re sourcing gemstones and precious metals (both of which are expensive right now), make sure you have built in a decent margin for yourself.

To creating a bold business and an extraordinary life!

Starla