Tag: new business markets

Bootstraps Still in Fashion for Budding Entrepreneurs

It’s heartening to hear that entrepreneurship is alive and well in America despite the dismal economy. A new business organization is growing in the heart of the American Midwest where it seems that bootstraps are still in fashion! The International Bootstrapping Association held its inaugural meeting in Columbus, Ohio this week. Its goal is to give budding entrepreneurs, known as bootstrappers, a leg up, help them get started, and teach them to survive on self-funding while the economy fights its way back to full recovery.  

“A bootstrapping entrepreneur has to solve problems with creativity and perseverance because they can’t buy the answer,” association co-founder Bill Troy told Margaret Harding of The Columbus Dispatch in an article that appeared on April 10, 2009. “They have to come up with some creative solution that doesn’t cost money.”

Most entrepreneurs don’t have the luxury of investment funding, particularly in the current economy. To keep American entrepreneurship alive, successful Ohio entrepreneurs have pooled their talent and resources to create a self-help organization by entrepreneurs for entrepreneurs. The organization provides an opportunity for would-be entrepreneurs to learn from the start-up experiences of their already successful, experienced counterparts. The group hopes to create a model that could spark similar chapters nationwide.

The first meeting debuted with a panel discussion followed by work groups. “We really focus on experience, not advice,” Troy, president and founder of Troy Research, told the Dispatch. The group takes a real-life approach to problem solving during its discussions. “It’s what people have really tried and done in the situation, not people telling you what you should do,” Troy explained.

Concerned about the pitfalls of investor-driven business, as all too clearly elucidated by recent events, the Ohio group aims to give entrepreneurs the tools to survive on their own. Troy believes that to survive U.S. entrepreneurship needs to return to the perseverance and scrappiness that defined its early pioneers.

As innovators in the field of ergonomically-designed, battery-powered material handling equipment, DJ Products understands the challenges faced by today’s budding entrepreneurs and salutes the launch of the International Bootstrapping Association. 

Where to Find New Marketing Opportunities

Competition is even tougher than it was before. Most sectors of the economy are expected to post losses through 2009 with little improvement expected until sometime in 2010. The bottom line is that for the next year or two everyone is going to be scrambling for a bite of a much smaller pie. In our last post we shared survival tips from DJ Products’ own experience and from Doug Gregory of Diamond Group Marketing (see his February 9, 2009 article on Manufacturing & Technology eJournal). Aggressive marketing, superior customer service and strategic diversification can help your business survive a bear economy, but to thrive you’re going to have to start searching for new customers.

Gregory and others agree that there are bright spots glimmering amidst the general economic gloom. Certain industries are expected to thrive and grow in the coming few years despite the downturn. Savvy firms will target marketing and sales campaigns to take advantage of expected growth in the following economic sectors:

  • Food industry. As Rally’s, a local burger joint, advertises, “You gotta eat!” The entire food supply chain from farm to table provides multiple opportunities for growing your customer base. Agricultural equipment, fertilizer, transportation, processing, packaging and retailing are just the tip of the food industry pyramid.
  • Pharmaceutical/health care industries. Baby Boomers, the world’s largest population segment, are aging. Demand for pharmaceuticals, health care products and health care services is expected to increase and remain steady over the next three decades.
  • Energy industry. Companies that produce, process or deliver energy products are excellent growth targets. With support from President Obama, increasing federal funds will fuel the development of alternative energy options. However, viable nationwide replacement of current energy sources is years, even decades, in the future. Current oil, gas and coal operations are expected remain strong with increases coming in their development of new, cleaner, more cost efficient applications for their products.
  • Transportation industry. Traditional transportation will still flounder for a while until production volumes and consumer spending improve. But there will be opportunity in infrastructure improvement and rebuilding fueled by federal stimulus spending and job creation. And watch for opportunities in new public transportation options still on the drawing board. Last year public transportation ridership posted a 52-year record high. As America struggles with energy issues and global warming, expect increases in innovative mass transit projects.
  • Look south. Southeast and Gulf Coast states are experiencing a manufacturing boom benefiting in part from post-Katrina spending. Census figures indicate that Americans are moving south, seeking jobs and better weather. Environmentalists are leery about the Southwest, however; which is already experiencing water shortages and some fear believe is on the cusp of long-term, possibly terminal draught.

New Marketing Strategies Needed to Survive Lean Years Ahead

With the economic prognosis dim for 2009, U.S. manufacturers and businessmen need to rethink basic marketing strategies. Gone are the comfortable days of order backlog that manufacturers have enjoyed since the post-WWII. Everyone is scrambling to find new customers and new markets for their products. As Doug Gregory of Diamond Group Marketing pointed out in a February 9, 2009 article on Manufacturing & Technology eJournal, “you can’t cut and save your way to survival and profitability.”

To survive the next few lean years, you’re going to have to take excellent care of your current customers and work hard to find new ones. Gregory recommends a number of marketing strategies proven during previous downturns to help companies survive and even thrive. We’ve added some comments based on the benefit of our own experience here at DJ Products in building a successful material handling company with a national reputation for innovation, quality products and superior customer service.

  • Aggressive marketing. Many companies cut back on marketing efforts during a downturn. Survivors will buck the tide and increase marketing across the board. During tough economic times, potential customers do more shopping around looking for the best bargains. Getting your company name out there where they’re looking gives you a better chance to snag the sale.
  • Customer service. Without your customers you won’t have a business. Keeping customers happy must always be a top priority. During economic downturns competition heats up and you have to work even harder to keep your customers from jumping ship and going with the competition. Keep in regular contact with your customers so you’re right there to meet their needs as they arise. In a downturn, companies typically decrease inventories to cut expenses. You’ll benefit if you can provide customers with fast order turnaround and guaranteed delivery dates.
  • Strategic diversification. A tight economy forces you to expand and diversify your customer list, but make sure you don’t lose your core focus. You don’t want to dilute the expertise that sets you apart from your competitors and draws customers to you in the first place. Look for new customers with needs similar to those you now serve. Take a look at your current customers’ competition. With the same needs as your present customers, they present a ready market for your products.

Next time: Where to look for new marketing opportunities.