To follow-up further on my recent posts, I really do believe this could be a good time for business over the next 6 months, and could well be part of the stimulus that we are all looking for.
Wow, that is a pretty bold statement, don’t you think?
Well yes it is, and here is why I say that. It is obvious that the past two years have been pretty sobering to say the least. First we had the financial collapse, which many would say was inevitable considering the lax standards and strong growth that preceded it. Then, ever since the meltdown, we have been stuck in a period of angst and fear of a double dip recession along with the continued fallout of the real estate market collapse.
For sure, there is much that still needs to work itself out – however, my optimism is predicated upon the small business sector and the inevitable need for businesses to start moving again. Two years are a long time to put expenditures on “permanent” hold. At some point a business that has deliberately held off on doing any marketing for two years will ultimately make a decision to commit some of the upcoming year’s budget to be proactive in this area. It might not be a record spend, however the simple focus of getting started could be a significant change!
In most cases businesses have made the painful cutbacks necessary for downsizing. In other cases, many of the weaker organizations have had to close up shop. This has culminated in record unemployment, however it has also allowed most businesses to become profitable again. With this shift, the mindset will now trend to looking for growth. Historically, marketing budgets are the last to come back, and I believe we will see this begin in the next 6 months. Businesses may have a modest surplus that they will finish the year with and start now, or at the least they will be budgeting a slight increase in this area for next year.
Business has always been cyclical. Just like in 1999 when the fear that the new millennium would disrupt the current computer systems and hence the investment in new technology was unprecedented, it did not take a rocket scientist to figure out that new technology investment would drop off significantly in the following 1-2 years.
With business having suffered through the worst period since the great depression, I really believe that we will begin to see the turn-around beginning now. I don’t expect us to be seeing record growth, however I do think it will be the small business sector that will drive the economy in the short-term – and that some of this will begin with an increased emphasis on new marketing efforts and the growth that will follow this effort.
All of our businesses have changed over the last couple of years, and now is the time to start telling your existing clients and prospects of how you have adopted. Jump in and get started!