Jim over at Blueprint for Financial Prosperity commented on my short little Restaurant.com post — the one where you can use coupon code TREATS to save 80% through Halloween — saying that the participating restaurants in his area had left the service.
One might conclude that these restaurants are in a bit of contraction mode. The restaurants used Restaurant.com to gain new customers and keep old ones by having them sell discounted dining certificates. The restaurants hope to make up for the initial loss of giving discounted meals to customers by (a) getting them in the door and buying higher-markup items like drinks and appetizers and (b) having them come back with their friends.
When times get rough, it's all too common for businesses to cut back on advertising and marketing. The concerns become putting food on the table and making payroll, in that order. Withdrawing from Restaurant.com is a cutback on advertising. Restaurants are likely to get hit pretty badly in this recession (and any recession) because eating out is a discretionary expense.
Businesses are going to see tough times. Consumers will be guarding their spending. They will buy the essentials first, and forego other expenses that they gladly made when they felt richer. They'll be fixing what they have to save money instead of buying the latest and greatest. Businesses will have to provide awfully good deals, but the deals can only get so good before the business is losing on each sale.
Home-based business will see hard times, too, but I think the concern with secondary-income businesses — like blogging, for example — will be to keep things going even though the income drops. Making payroll may not be an issue, but writing several posts a week for a fraction of what was coming in a few months ago might get old. Watching affiliate income drop might get old, too.
I've been blogging for over three years now. The recession could last well into 2010, but I'm convinced that things will go on the way up again. It just may take a while. Unless a serious financial emergency comes up, I'll keep plugging away, building up my post count, subscriber count, etc. (Thanks for reading!) When the economy starts up again, people start spending again, I'll have a stronger business than before the recession.
The recession won't be forever, and lower sales and profits won't be forever either, but just keep at it! Some of your competition won't keep at it, and that's good for you. You'll be in a stronger position after the recession.
Good post, I agree – I am doing the same thing. Just keep on keeping on. Similar to investing over the long term, just keep adding to it when times are down and when they come back you will be sitting even prettier!
I agree that branching out into a home business is a good idea. After all, if diversification in investing is a good thing, then insn't diversifying your income even better?
All my ideas would give me an opportunity to do something I enjoy, and would have the added benefit of extra tax breaks. Sounds like a smart money move to me.
i am hoping that the global economy would recover from this economic recession. life has been very hard with these massive job cuts.
Our country was also hit hard by the Economic Recession. At least we are seeing some signs of economic recovery now. I hope that we could recover soon from this recession.
*…
Our home business was really affected by the Economic recession, we have to cut jobs just to cover up our losses. fortunately, we have already recovered. “