Wednesday, 04 February 2009 15:18

How to Get Through and Out of the Economic Crisis

Written by  Patrick Valtin
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Patrick V. Valtin is an international sales & marketing consultant and management coach. He has trained over 75,000 people in more than 25 countries. He recently was lecturing in Athens, invited by AMT Management.
Patrick V. Valtin is an international sales & marketing consultant and management coach. He has trained over 75,000 people in more than 25 countries. He recently was lecturing in Athens, invited by AMT Management.

Do you want to survive and be able to experience expansion while everybody else believes this is the worst economic crisis ever – and is set to last for the rest of their life? If your answer is yes, then follow these 3 steps:

RULE NUMBER ONE:

IF YOU KNOW YOUR HISTORY, YOU HAVE NO REASON FOR WORRY! The current economic crisis is just a repetition of the past. Don’t you remember “Black Monday”? It refers to Monday, October 19, 1987, when stock markets around the world crashed. The Black Monday decline was the largest one-day percentage decline in stock market history. But all world stock markets rallied in less than 1.5 year.

Moving forward, you may recall the 1991-1992 world crisis right after the Gulf War: huge peaks in oil prices, a steep decline in the commercial real estate market and a credit crisis (following the infamous savings and loan collapses of the late 1980s). This crisis ended in 1994 and world stock markets hit top values in less than 2 years.

And of course, in our recent past, the 9/11 attacks had a significant economic impact on the United States and world markets. The New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and NASDAQ did not open on September 11 and remained closed until September 17. When the stock markets reopened, the Dow Jones Industrial Average (DJIA) stock market index fell 684 points, or 7.1%, to 8921, a record-setting one-day point decline. By the end of the week, the DJIA had fallen 1,369.7 points (14.3%), its largest one-week point drop in history.

But recovery came faster than expected, world stock market hitting again unparalleled top levels within less than 2 years and continued to climb until 6-7 months ago.

So, the moral of the story? Crises always bring recoveries, and these come faster than many dare hope. I have personally lived and survived through 6 crises over the last 50 years. I have grown stronger and smarter out of each of them. And so have you, I am sure!

RULE NUMBER TWO:

IGNORE the bad news. Do not read or listen to the bad news in the papers, radio or TV. I am sorry to say, but listening to bad news, gossip and rumors will not do you any good.

You will find out that the mass media are specialized in scaring you to death. When you understand that, you want to get access only to “good news” media. And there are some! Good news brings good news. Insist on getting good news at least once a day! And also put your attention on giving your friends, your employees or your colleagues good news at least once a day.

I once advised a customer who did not know what to send out for promotion. He was concerned that his customers were complaining about his bi-weekly email newsletter. I told him “well, double it. Send them good news…” He took this by the letter and started to send his 20,000 customer base some success stories or good news from happy customers on a weekly basis. Nobody ever complained about it – and he “miraculously” started to make more money!

So, spread good news around, in life and in business. Suggest to people around you to do the same. Surround yourself with people who are “good news” – and you will soon see a big difference in your business… and in life. I like to live with the following principle: “One piece of good news a day keeps the trouble away!”

RULE NUMBER THREE:

GO NUTS on your promotional actions. Increase your reach to your market. This means, literally: increase your communications to your mailing list. Are you sending 1,000 promo pieces per week? Start sending 3,000 of them. Spend less money on quality and more money on quantity. During tough times, most people and businesses tend to introvert and reduce their reach out to the society or to their market. Don’t do that, as it is a fatal mistake!

You may have to double or triple your promotional actions. So what? If you were stopping your marketing and promotional efforts what would happen to your business? It would die… well, what will happen to it if you multiply your promotional actions? It will grow.

So here is the tip. Find out what was your best promotional action, ever! Which promotional action was giving you big business? Do it again! It does not matter if it was one or five years ago. Find out what promo was successful and do it again BUT IN HIGHER QUANTITIES. Find the money to multiply your reach out to your market. Sure, you should economize; spend less money on less valuable actions. But your business will grow to the extent that you are (still) existent in the eyes of customers. Promotion is the last thing you want to reduce. Triple (or more) what you have ever been effectively promoting!

Conclusion: do what most people don’t. Go against the flow. Do what Warren Edward Buffett recently suggested in a CNN interview: “When people are greedy I am worried. When people are worried I am greedy.” I always like to take advice from people who proved to be right! Warren was ranked by Forbes as the richest man in the world during the first half of 2008, with an estimated net worth of $62 billion. In his recent interview he laughed when the reporter asked him why he wasn’t worried about the current world crisis. His response: “I got rich also because I learned to disagree with the bad news…”

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- Tampa Bay Informer
The Good News Newspaper

   

Read 1389 times Last modified on Thursday, 22 October 2009 15:58