Thriving in the Downturn

I am being asked with, unsurprisingly, increasing frequency what businesses will do best in the current tough economic climate.

In my view, a focus on delivering value (as understood by the customer!) is key. This is universally true in good times and bad. However, failure to deliver this in good times results in missed opportunity, whereas failure to deliver it in bad times results in, well...failure of the business.

So, to focus specifically on the current climate, a consumer business will - ideally - do one or both of the following for their clients:

1) Enhance employability
2) Reduce stress

Already, we see training and business education doing well, and gyms, yoga classes and family counselling services booming.

In B2B, services and products that increase efficiency or reduce cost (especially fixed cost), or increase sales or profitability for their clients are likely to do well.

None of this is "field left" - these are good areas to be in at any time, but the current crunch will make everyone re-examine where their dollars are going, and look for solid value. Just remember, the vast majority of people have not experienced a drop in income, so the money is still out there - you just have to work out what represents value in your industry or customer segment.

Having said that, there are some long-term trends that are worth looking at, and convenience and "green" do stand out.

I hope this gives you something to think about. Do post comments or contact me if you would like to follow any of this up.