Booming in a Recession?

The technology and communications revolution!

So what types of businesses are booming in a recession and where are companies focusing their resources?

Certainly in the UK the Government is ploughing millions of pounds in to training to save the economy and Obama’s $825 billion plan to jump-start the economy and create or save up to 4 million jobs with an additional $102 billion going to help victims of the recession with unemployment insurance, health care, food stamps and job training. (USA Today 15/1/09)

Tina's Training

This backs up my view that with output falling and some firms having to lay-off or go to the shorter working week, companies and individuals will need to spend their free time on education and training so they can keep their heads above water let alone get ahead.

This is good news for training and education businesses. I know of a number of trainers and training companies who, funded through government indicatives, are seeing an increase in business as they attempt to train people back in to jobs.

Even small businesses, entrepreneurial business and consultants are spending their free time in getting as much education as they can while times are tough. It’s the only real way to stand any chance of getting ahead. Everyone seems to be looking for the ‘magic bullet’ that will win the next order and as investment in your own learning is just that – an investment – those who do have a little savings are spending it in this way in the hope it will make them more appealing to companies and clients alike.

As a result this recession will fuel a massive leap forward ‘tomorrows technology’ and in the way people communicate and use technology. More and more people are becoming expert in blogging, social media marketing and use of tools such as YouTube and Second Life for training, marketing and consultancy based businesses.

With small entrepreneurial businesses needing to keep overheads to a minimum, many will choose to work from home and have virtual offices on the web instead of actual premise. I expect that Second Life will be used in a much more business savvy way. The creation of virtual training rooms will be available for staff in large companies to work on at slow times, to suit their companies or to take training in their spare time from the benefit of their own homes.

This will be a technology and communications revolution.

But face to face will still have its place and I predict an increase in local networking groups seeing a rise in membership. Small business owners will come together and work the leads and connections that are available. I have joined 2 new groups in one week alone, and the turn out for these groups is much higher than in previous years. Where in the past, you might become TOO busy to attend, now, with more time being available, people are getting out and making those contacts and forming longstanding relationships with a view to gaining more business. Business is becoming harder to come by and takes more work to find it, targeting and win it.

Another strategy being adopted by many consultants is, ‘let me do the work and pay me AFTER I get you the results’. That takes away the cash flow problem that might be preventing companies from doing things in a new way and only when new business comes in, does the company then pay the consultant for their input. I can see this approach being taken on by many entrepreneurial businesses who work from home and have the advantage of no/low overheads which makes it an option they are able to offer.

Be interesting to get your thoughts on this. Are you an entrepreneurial business or a consultancy that is having to find new ways of doing things. Are you a company who is working with trainers and consultants to get the edge? Please give your views below

Tina Jesson - The Visibility Creator
Author, business growth & markting consultant, trainer and speaker. www.tinajesson.com