The storm clouds have been massing on the economical horizon for some time, and the sun is having a hard time breaking through. More tough times ahead. As the storm rolls in more fierce, our correct natural instinct is to kick into survival mode.
I plan on surviving this storm, will you join me?
Depending on who you talk to, we are either already in a recession or will be soon. The writing is on the wall.
According to Bill Bartman, said to be the 27th richest man in the country, here's what we ALL need to do to ride out the storm - get lean, get focused, and expand marketing like never before.
Mr. Bateman says there are five things we need to understand about recessions:
1. They regularly happen, usually about every 8 or 9 years.
2. More than 500,000 businesses fail during a recession.
3. They are ultimately healthy - they weed out the crowd and level the playing field.
4. They reward the nimble and the flexible.
5. All of them come to an end within 1 to 2 years.
Bartman points to six ways that smart survivors not only ride out the storm, but also find themselves in control of their market areas once the storm has blown over. OK, I'm ready to listen, because I plan to survive, and eventually thrive!
1. Get Lean!
Paring down operating expenses is a must. Some examples: employee cuts may be needed; if you have two product lines and one is failing, sell or discontinue that division and concentrate on core markets; ratchet down inventory; cut or eliminate travel expenses, meals and entertainment; renegotiate contracts for materials, equipment and services.
2. Expand Financing.
Borrowing power tightens with the economy. Line up dollars and terms NOW for the long haul. Knowing it's there when you need it will free you up to make smart decisions. For me, the best advice I ever got for my real estate business was to LEAD WITH REVENUE. If I don't have the cash, I don't buy it. ALWAYS a good plan.
3. INCREASE Marketing.
Why? While your competitors are cutting back or ceasing their presence in the marketplace, you'll be positioning yourself to capture their lost market share. How? Revise your promotions to make buying from you easy for you customers; put systems in place to get in touch with your past clients and stay in touch with them every 21 to 30 days; create referral reward programs (note to Realtors, don't violate RESPA!) implement direct mail and drip marketing campaigns; focus on high-end and economic buyers for highest response rates; match your message to your market segment; FINE TUNE AND AGGRESSIVELY PROMOTE YOUR UNIQUE SELLING PROPOSITION!
4. Maintain Prices.
Business analysts and recession survivors all tell us it's a mistake to slash prices to increase cash flow. If anything, some products may need to increase in price. Deep discounts and services weakens brand value, dilutes your profit margin and when the economy shifts your customers will still expect similar discounts. Instead, offer extras or freebies that incent loyal clients without damaging your brand or the bottom line.
5. Adopt Cutting Edge Solutions.
Technology can be the key when competition grows and the economy wanes. Customer relationship management software, email marketing systems, drip campaign programs and admin management software allow you to know your business is running smoothly and allows you to keep your eye on the ball.
As I said before, I am in this for the long haul. I love the real estate business, helping people be successful when their hopes and dreams involve buying or selling real estate. I'm good at it. It makes me happy. I make my clients happy. Now, more than ever, people need EXCELLENT real estate advice and representation. I plan to ride out this storm and come out stronger on the other side.
May God continue to bless America, where we are free to choose how we will react to circumstances beyond our control.
Photography credit goes to my amazing sister, Kerri Thoreson; and to Don Sausser for the rainbow photo.
Janna Rankin Scharf, AB, GRI, CSP, CNS, CLHMS, provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
Janna Rankin Scharf, 208.651.9700 NorthIdahoJanna@gmail.com
Janna Rankin Scharf provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
No matter how grand or modest your real estate dreams may be, you can turn to me in confidence. Give me a call today and let me know what I can do to be of service to you!
Janna Rankin Scharf AB, GRI, CSP, CNS, CLHMS 208.651.9700
Janna- First let me tell you that I almost didn't read this, as so many Posts have been written on this. But yours was different.....you had real examples, and the way you presented the bullet points....well I liked it. I also liked the message that I have been doing the right thing by not slashing prices, and by reorganizing our expenses. Thanks.....enjoyed this, as my particular niche has been very hard hit.
We've been in RE for 20 years, and we've seen the ups and downs (well, not THIS far down). We'll be fine. We do rentals as well as sales, so we're busier than ever, and when the market turns we will have a lot of listings which we are now renting out.
If we were purely sales one of us would be doing something else for awhile, but we'd survive.
Janna- You have a well thought out game plan to get through these difficult times. I believe we are looking at at least 2 years more of a depressed market and unstable economics. We all need plans to make it through to the other side. Thanks for sharing your thoughts!
I think we all need to buckle our seat belts, it's going to be a bumpy ride. Been downsizing my budgets for several months now!
Janna, Eventhough the message is hard, I found your post very inspirational and wise. As Zig Ziglar would say see you at the top:))
Janna,
I'm with that first comment by Kathy. This is exceptionally well written. Thanks!
Mike in Tucson
Janna,
I have been a realtor for 30 years and I am in it for the long haul also! I have seen interest rates at 22% and we still sold homes, why, because there is always a need. We professionals will satisfy that need with good and honest service to our valued clients. We will survive this market and be better agents for it!
Caren
Thanks for the great advice. I will check back often. I really like the blog. I am new at blogging but I am beginning to learn quite a bit from reading blogs like the ones I find on Active Rain. If I can ever be of help just visit my blog or my website: http://yournowwhat.com
Thanks, Terry
Janna, I cannot tell you how much I enjoyed this! So well put together and a strong message of HOPE. We all need that today. I can tell how much you love your work and how important it is for you to stay in it. I truly believe you when you say you will survive! Good luck and God Bless.
Debbie
PS Tell your sister Kerri that the photos are incredible!
Beautifully said and depicted, Janna. Thank you for a hopeful light in all the hoopla.
Janna, That was a great example of a featured post, I hope the brain trust agrees. By the way, I will join you...
Hi Janna,
Thanks for taking the time to think this post through before writing it. Very well done! The pictures are awesome as well.