This is a great time to start a new business

Starting a business during an economic downturn is not a bad idea. Checkout this video from entrepreneur.com...

Keep your cool and don't blame your customers

When you are facing hard times, it is easy to project that onto your customers. When you are getting hit with higher expenses, do you start looking at your customers as liabilities? If you do then, you will feel the need to punish the customers so that they feel your pain too. You may find yourself thinking that it isn't worth it to keep offering the same level of service when you are getting a diminishing return.

Let me encourage you to keep your cool at this point. If your business is taking a downturn and you have fewer customers, then you have more time to serve the customers that you have retained. Massage your clients - don't punch them in the gut.

I was hit hard by Delta airlines a couple of weeks ago. They let me know loud and clear that they are hurting and that I should hurt too. I got a double punch to the gut in the form of extra fees totaling $175 (one way) when I had to check three bags instead of one. They clearly let me know that I was the cause of their high fuel costs and I was going to pay and pay big. Boy, I learned my lesson - Don't fly Delta when the chips are down - they take their frustration out on their customers. I tried explaining this to a customer service supervisor and he tried to win me over by arguing with me. I lost the argument and Delta lost a customer.

I'm flying Southwest from now on.

Free wifi and coffee

I am enjoying some good coffee, answering email and watching the Fox Business Channel. Where am I? I am at my local Honda dealership. Oh, did I mention that I am also getting my oil changed? I don't have to make an appointment to get in here - just drive up and they are more than happy to assist me. Sure it takes a little longer than a quick lube place, but it is less expensive and I can get some work accomplished while I am waiting. I am now a customer evangelist for Holler Honda in Orlando, Florida - good job guys.

There are more people drinking coffee here than in most coffee houses. Has anyone thought of opening a coffee house inside a car dealership?

Fireproof: Hot Viral Marketing

ABC News reports...

A film that was made for $500,000, relied more on word of mouth than television and print ads, and is headlined by an actor best known for a 1980s television show, opens at No. 4 in the country and rakes in $6.8 million in ticket sales.

The film is called Fireproof and as of today has taken in over $12.5 million (the ABC figure was from opening weekend). What is more impressive is that fireproof opened in only 839 theaters. The production company relied heavily on viral marketing to reach their target market.

Community First

Threadless T-Shirts has developed an online community of artists who submit t-shirt designs. Members of the community vote on the most popular designs. The top-voted designs get printed on t-shirts, which are sold back to the voters. Threadless creates community, finds out what the community wants, lets them create it and sells it back to them. Never underestimate the power of community!

Bail Out or Bail?

How will the government bailout of Wall Street affect your business? Do you feel like you have been bailed out or is it time to bail? I see businesses failing all around me. Mostly, I see a failure to adjust to changing markets. Whenever there are huge moves in how people do business, there are always opportunities for entrepreneurs to create new models. One thing we know for sure is that we can't keep doing business the same way. So, how (or) are you going to change?

Before you decide to bail, take a step back and look at the big picture. Is there a way that you can continue to offer your product or service without the trappings of traditional business models? What are your competitors doing or not doing? What opportunities do you have? Do you see a wave that you can ride?

As you re-think business, don't forget to evaluate your use of information technology. You can make huge cuts in your overhead costs if you properly harness internet tools that didn't even exist 3 or 4 years ago. If you feel stuck, or don't see any way out - you may need a coach who can help you see your potential.