It Is Time to Recession Proof Your Small Business

October 4, 2008 -- If you are a gym owner, spa owner, studio owner, personal training, or any entrepreneur, for that matter, you need to take heed, times are not quite normal. Even with this week's congressional bailout, all the indicators are pointing to a very nasty recession.

Goldman Sachs Group said the U.S. economy will enter a recession "significantly deeper" than previously forecast, with unemployment reaching 8% by the end of 2009.

U.S. payrolls plunged in September 2008, signaling the recession may be the worst in 25 years as the 13-month-old credit crisis on Wall Street finally hits home on Main Street.

Consequently, the challenge for the fitness industry is to remind their customers and prospects, that the good health that fitness fosters, is not discretionary it is a need, an absolute necessity, cut back elsewhere.

If you are a gym or studio owner or self-employed personal trainer, don't despair, if you stay ahead of the curve with some critical actions, you will survive and then thrive during the inevitable upturn.

Here are some definitive measures you should be taking -- starting today.

Preserve Cash

Create an emergency fund. Calculate what your monthly expenses are, then multiply that rate by three-that's at least as much as you should have socked away in an emergency fund which will be your absolute necessity expenses. "Six months is even better" says financial adviser Suze Orman. Downward Recession Arrow

Reduce Debt

This is a good time to be working on getting out of debt. The precarious economy ups the ante-and the possibility of deflated sales -so it's even more important to bag your lunch, forgo the afternoon Starbuck's latte, and pay down those credit cards.

Keep Marketing, But Shift Your Tactics

The televised financial gurus are all advising that consumers cut back on their spending during these turbulent times, advising that they distinguish very carefully their wants from their needs, and to pare back on those wants.

Consequently, the challenge for the fitness industry is to remind their customers and prospects, that the good health that fitness fosters, is not discretionary it is a need, an absolute necessity, cut back elsewhere.

Of course, you have to keep selling and marketing, but you're going to have to be very creative and using the vehicles that have a high return on very little investment, again, we are preserving cash.

Creative Pricing

"Make sure you have multiple streams of revenue in your business that provide your clients with various entry levels or "price points", advises fitness marketing advisor, Susan Block, "If a month of personal training costs the average client $600-$1,000 a month, you want to also provide some kind of service that costs less. This way, if a client is experiencing her own personal recession, you have a way she can continue working with you during that period. After all, it is far easier and less costly to keep an existing client than to get a new one."

Launch a Website

If you don't have one, now is the time. With good search engine optimization, the Web can be perfect for driving customers to your business. A Website is a necessity for providing additional information clients need to make informed buying decisions. "At first, don't worry about slick Flash images, simple photos of yourself and text which articulates your unique value proposition will suffice", says Al Valente of FitcomDesign.com. The Flash can come later after the economy improves, but you need to keep your name out front.

Gift Certificates

October is an ideal time to start selling your gift certificates instantly on your Web site. Statistics show an overall 30% increase in gift certificate sales when they sell through their Web site. Using PayPal or Google shopping cart is an easy way to set up a merchant account instantly.

Write A Newspaper Column

Become a recognized expert in your field by publishing a column. This may take some footwork to get in the door, but don't get discouraged. The pay off is well worth it. "The media are always looking for unique stories on the same tired old themes, says Jim Labadie, advisor to personal trainers, "As a fitness professional what are you doing to help your clients stay fit during the holidays? If you are, the media would love to hear from you. Also, the more unique you are and the 'fresher' your ideas the greater the likelihood of the media starting to look for you."

Source: Fitcommerce.com

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