A Guide to Understanding Tough Times in the Gift, Home Decor, Personal Care and Floral Industry

Gas prices through the roof, credit market through the basement, banks closing, houses auctioned, debt piling up, dollar value falling, inflation rising, food prices unstable.....not the type of environment that makes the average American want to buy what you have to offer.



Let's face it, no matter where you go, money is tight these days and everyone is feeling the crunch. Small business owners have been especially hit hard by the lack of discretionary income available to most people so enjoyed in years past.



This is no time for looking into daring new territory, nor is it a time for major new forays into new products, advertising, promotions or warehouse and office expansion. Most manufacturers see it as a time to hold on and hold tight. 2008 will be the year of caution, conservative inventory levels, low sales volume and tight cash flow. Pay the bank, shut up and take it like a professional, right? After all, we are all helpless to the ebb and flow of economic cycles and no matter who we blame, business, lawyers, government, homeowners, rich, poor, black, white, Hispanic, we are where we are and nothing can change that, at least not at this moment.



But in the same fashion, this is no time to lose focus on what lies ahead and prepare for it. A time is coming, inevitably, when money will be plentiful to the consumer, your product will be the a sizzling hot commodity for a time and you will have a very short time frame to capitalize on the opportunity that a good economic cycle provides.



So what do you do today, when the storms of recession are overhead and no break is in sight?



Just like the weather, you look at the indicators and make your plans based on the best judgement that you have today. You don't plan for a picnic when thunderstorms are forecast for the next three days and you try not to plan to spend the day indoors when the sun in shining and temperatures are optimal. So this is a great time to plan for the next sunny day. What will you do and how? What will the consumer need and when will they need it?

It's easy to get caught up in the horror of big banks, big business and big money vanishing into thin air. The once mighty giants of the industry have fallen and one can't help to wonder if your business might be next, but does it really have to be that way?

At Beacon Consultants, our answer is simply, no.

Next: A Guide to Understanding Tough Times in the Gift, Home Decor, Personal Care and Floral Industry, Part 2