5 ways to boost your business, despite low consumer confidence

5 ways to boost your business, despite low consumer confidence

Consumer sentiment plummeted in March, foretelling new challenges for merchants

For a business owner, reassurances that "recessions don't last forever" may not carry much weight these days. The U.S. federal budget deficit continues to skyrocket, while unrest in the Middle East, higher gas prices and the nuclear crisis in Japan are continuing to create uncertainty. Some experts forecast that inflation is just around the corner as well.

The University of Michigan's consumer sentiment index for March reflects these challenges. The survey's gauge of consumer sentiment took a nosedive this month to 58.3, down from February's relatively optimistic 71.6. This month's findings mark the lowest level of consumer confidence since March 2009, and experts say that higher gas prices are partially to blame. As a result, retail sales are also vulnerable, say economists.

But merchants don't have to just helplessly absorb these body blows. Merchants must be nimble, quick and creative during hard times; but that is good news for smaller businesses. Small enterprises are more flexible than large corporations and therefore possess more options to quickly adjust.  

Here are 5 ideas for fighting back and surviving in a difficult climate:

1.  Take advantage of your local Chamber of Commerce and your neighborhood development association. Many services are free of charge with your modest membership fee, and the value of networking cannot be underestimated. Staff can give you advice and help put you in touch with government incentive programs and other sources of much-needed support.
2. Diversify your enterprise. For example, small-business owner Jason Devereaux in New York City's Inwood area expanded his private-label clothing boutique by adding a tea bar and chess lounge at little cost. Your enterprise may be more nuts-and-bolts than a boutique, but consider what else you may offer within your building's confines.
3. Consider moving. With the real estate market in such a bind, keep your eyes open for more affordable digs. You may see a move as disruptive and undesirable; but if you're struggling as it is, you might find a better situation in another part of town.
4.  Enter cooperative ventures with neighboring enterprises. The metaphor may seem trite, but four separate fingers can unite into a fist of strength.
5. Consider new forms of advertising, such as on the web and in regional newspapers and magazines.
It's not shameless to target wealthy customers, says Suzanne Muusers, creator of the Business Success System. Wealthy and affluent folks are looking for products and services that cater to their lack of time, and they don't mind paying more for convenience (and possibly status). Targeting these customers on the web or through a local publication that you haven't considered before could pay dividends in the future.

Article by Michael Thompson

Published: March 25,2023