The Private Practice Professional’s
No-Fail Strategy to Survive the Next Market MeltdownWe all know its coming… The next Great Recession, market “correction” or downturn, bear market—whatever you want to call it.
These predictable busts in the economy are manufactured for one reason: to redistribute wealth from those who produced it to those who did not. Since the privately-owned Federal Reserve took over our money supply in 1913, this “market cycle” has become a normal state of affairs.
But do you have to fall into the trap? Do you have to be the one from whom the wealth was stolen? The truth is that you don’t, but you have to disagree with what APPEARS right and comfortable with the masses and take action in what ACTUALLY produces results.
The first action is to implement the Econologics Road Map® for Professionals. This Results-Based Financial Planning® tool creates a household financial condition that predicts and provides for the major risks that can destroy your wealth. This protects what you have already earned from the destructive effects of taxes, interest, creditors and market manipulation.
In times of economic duress, you must also take steps to protect your income. In order to do this, you must rise above the noise of the media and your competitors and do something they just will not do: increase your marketing efforts.
During great economic environments, promotion is easy since there is plenty of money around to pay for it. However, when the economy slows and patient/client visits become more difficult to keep on the books, then you must increase your promotional efforts instead of cutting back to save on expenses. All of your competitors will be cutting marketing costs as a first line of defense and cry that they “can’t afford it.” You, however, will play it like a true professional—promote and market yourself like crazy when everyone else is battening down the hatches.
Why? Because it works and I have studies to prove it. Take note:
The American Business Press and Meldrum & Fewsmith study on the 1970 recession year showed that “sales and profits can be maintained and increased in recession years and [in the years] immediately following by those who are willing to maintain an aggressive marketing posture, while others adopt the philosophy of cutting back on promotional efforts when sales appear to be harder to get.”
The same group did a study on the 1974-75 recession years and found that “companies which did not cut marketing expenditures experienced higher sales and net income during those two years following than those companies which cut in either or both recession years.”
McGraw-Hill Research’s Laboratory of Advertising Performance found that “business-to-business firms that maintained or increased their marketing expenditures during the 1981-82 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased marketing.” This came from analyzing about 600 industrial companies during that period.
Management Review article “Fortune Follows the Brave” in January 1993 noted that “The keys to gaining market share in a recession seem to be spending money and adding staff. Firms that increased their budgets and took on new people were twice as likely to pick up market share.”
The Harvard Business Review article “Advertising as an Anti-Recession Tool,” in January-February 1980 talks about the effects of profits when you cut advertising budgets. “The rationale that a company can afford to cut back in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position… Advertising should be regarded not as a drain on profits but as a contributor to profits, not as an unavoidable expense but as a means of achieving objectives. Ad budgets should be related to the company’s goals instead of to last year’s sales or to next year’s promises.”
So, your marching orders are clear. Put the hammer down on marketing during economic slowdowns. Here are some suggestions:
- Create a marketing campaign that you will use during a slowdown today. Don’t wait until the crash occurs—put a plan in place so it can be executed when all hell breaks loose.
- Create a sinking fund (an account full of money) so that when the crash occurs, there is money already sitting there to be used to fund your campaign. Cash flow may be tight in other areas of the practice, but not so for your marketing program—its already been paid for.
- Monitor your results by focusing on your metrics. Measure what is working and what isn’t. You should be doing this anyway, but it is much more important when money is more scarce.
- Focus on the value proposition, the benefits and advantages of your service. During weak economies, people will look for as much value as possible for as little outlay possible.
- Don’t stop promoting. Even if the recession carries on for 2-3 years or more, keep going. When the market recovers, you will emerge as the dominant player in your market because you showed your public that you have not only survived a bad economy, but grew from it because you know how to service patients/clients no matter what. That kind of PR cannot be bought.
Align your actions with natural laws and the way things really work, don’t follow a blind and scared herd, and you’ll become a Private Practice Millionaire. These are proven actions to ensure your prosperity regardless of the economic climate.
Fortune, indeed, DOES follow the brave.