Over the last 2 months we've been asking small businesses about the impact of the recession. The most interesting result of this work is how many small business owners and entrepreneurs talked about the opportunities they see.
Don't get me wrong. Most small businesses we talked to focused on the negatives of the recession. But a substantial subset (roughly 1/3) is quite upbeat and felt their firms were positioned to not only survive the recession, but to thrive.
The primary reasons the optimistic firms see opportunities in the recession are:
1. Their customers are looking for ways to cut costs, boost productivity and do more with less. The optimistic firms feel they are positioned to provide increased value and expand their relationships with existing customers.
2. Their prospects are re-evaluating all aspects of their business. Prospects are more open to switching vendors and considering new products and services that cut costs and/or improve productivity. The optimistic firms see this as an opportunity to grow.
3. The optimistic firms believe their business position is enhanced due to weaker competitors facing financial problems. The optimistic firms consistently mentioned picking up new business because weaker competitors are cutting staff, reducing their service or quality levels and going out of business.
We'll cover optimistic small businesses in more detail over the next couple of months.
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