Let's face it: we can't control the price of gas and groceries. But what is in our control? A handful of independent professionals recently took the time to share how they're dealing with today's economic conditions.
Matthew Beaulieu
In the areas that are affecting Beaulieu Marketing & Design, such as gas and printing costs, I manage to find other low-cost alternatives, and travel only when needed. I also do not to pass along any excess expense to my clients. I have found that my clients are feeling the crunch more than I, and I like to help them out as best I can, while still earning their business and making a living. This the ideal I live with, and I have not raised my rates since I started the company. Some business is better than none, and I feel it will build stronger relationships with my clients.
Debbie Campbell
As a distributor of promotional products, I order products from multiple suppliers. I cannot control the cost of materials and shipping that are determined by my suppliers, but I can control the efficiency of my business. It is important for me to take an extra minute to review orders for accuracy to avoid costly mistakes. I also take extra time to review invoices from my suppliers instead of just paying the total at the bottom of the page. It's surprising how often there are errors in quantity or price that affect my profit on a project.
Susan Coates
The speaking industry has felt the crunch of rising costs. Clients have to reimburse travel and expenses of their paid speakers. I have found this to be advantageous to my business because I have the resources to find speakers in the city the event is to take place, rather than flying in a high-paid speaker from across the country. And because of the relationships I've developed with my speakers, I'm able to design more creative programs for a better return on their investment. As an added benefit to my clients, I invested in a travel business so I could have even more resources available to the meeting planner; thus when travel is necessary, I can find the best rates. So, although the rising costs have hurt in some areas of my business, it has increased business in others. Hopefully, it will all balance out in the end.
Ron N. Gilbert
I make sure to remind my clients of the volatility in the costs associated with completing their projects, especially if the charges are significant and beyond the parameters of what would be considered normal. I always create an estimate (less obligating than a quote) for client approval. I can protect how financially secure my business is by putting some common-sense procedures in place. One of these practices is having my clients sign an agreement of services, which in its simplest form obligates the client to pay me for graphic design services performed in the agreed timeframe, regardless of the ability or willingness of that client's customer (if there is one) to pay them. No matter what the economic climate, there would hardly be anything more devastating to a business, and therefore one's personal finances, than to work hard and deliver a superb product or service and not get paid for it. Don't let your relationships with your clients be about how much you charge, but about the great service and/or product your client receives when he or she hires you. We should always perform to expectations, but in hard times, especially, we have to promise high and over-deliver. Keeping up the good work almost always carries a guarantee of repeat business. That's how you deal with a weakened economy.
Carla Van Hoose
I work longer and more efficiently than I did 20 years ago and see 5 to 10 more clients a week. I rent office space to other counselors or other small businesses and do some workshops, teaching or paid music jobs for additional income. I reuse paper for printouts that aren't saved, buy longer-lasting, greener light bulbs, buy office supplies on sale and in bulk, and bring my lunch to work most days. I check my bottom line at least quarterly or before any large purchases to be sure I won't have to borrow money and create interest payments. I pay the maximum to my retirement fund so I keep more of the money and the IRS gets less of it. I take good care of my equipment so that it has to be replaced less often. I look for free advertising wherever possible.
Kathie Stamps is the co-founder of www.ISBO.biz, an online directory of independent/small business owners. Contact her at kstamps@stampscommunications.com.