East Portland Chamber of Commerce

I would be remiss if I didn’t take a moment to highlight one of the many benefits of belonging to your local chamber of commerce: access to business experts.  This information I am sharing is from the perspective of a student; the East Portland Chamber of Commerce is blessed with several excellent business consultants for everything from accounting to marketing.  Join the organization and you’ll gain inside access to some of the brightest professionals in the industry.

Last week I left off with number 2, don’t borrow.  Number three, Defer capital investments. This advice comes with a caveat, if you must make a capital investment to keep your business running, then by all means do so.  Machines break down and if that is your only means to generating income, then fix or replace it.  Don’t go out and buy those new computers just yet, try to get a few more months use out of your existing computers.  If you can squeeze more use out of your existing machinery, then wait to invest in new equipment.

Number four, Postpone hiring. This one seems pretty obvious, but it can be a bit challenging to adhere to.  More people in the unemployment lines means demand for high wages is decreased.  While it may be tempting to hire a few lower price workers; you may have an issue when times get better with keeping employees you under paid.  If man power is low, consider putting more of your own hours into production.

Number five, Lower your prices. Stagnant inventory is a business killer.  Keep product flowing through your business, don’t let price points and desired profit margins stand in the way of money flow (the lubricant for your business).  Service based businesses are better positioned in times of recessions because lower overhead costs means you can cut prices.  In the end, the goal is to spend more time with your customers because when the recession is over, your customer will reward you for “being there during the tough times”.

So far all the recession response suggestions have been in the form of cuts.  One area where you can not cut is in Marketing.  Number six, Increase your marketing. If you are producing less, then you have more time to market.  If you don’t already have a marketing plan, take a day or so to write one.  Seek out the marketing experts we have in the chamber, get professional advice on your marketing plan then execute.  The best plan left unused is worthless.

If you are not already a member of a local chamber of commerce, then NOW is a time to join one (or more).  Recessions always look worse in your financial statements.  Money is tight and everyone is hurting, adding depression to the mix will only make matters worse.  The Pacific Northwest presents an extra mental challenge in the winter time with dark gray skys and drizzling weather.  Getting out and being around other business professionals will be good for your mental well being.

Dr Thomas G. Jones didn’t mention this next one, but he didn’t have to because we were sitting in his classroom; but sign up for a business class.  Recessions are a perfect excuses to go back to school or advance your personal/professional education.  Community college programs are very affordable, the Oregon Small Business Development Centers are always offering business improvement classes, and the library is FILLED with great books on how to do everything.

Here comes a shameless plug.  Sorry!  On November 19th, I will be teaching a class with Max Corona at the Gresham Small Business Development Center on Online Marketing.  You can eMail me or call the Gresham SBDC for more information.

Last bit of advice on how to make recessions a positive business experience.  Go have coffee at least once a week with someone new you meet at a chamber meeting.  Share stories about your business, listen to them talk about their business.  Sometimes business growing ideas are born from obscure conversations with new friends.

Don’t let this recession drive you out of business, use it as a spring board to launch your business a head of the competition.

Ed Bejarana
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