Now is the best time to invest
Turning the worst of times into the best of times (Part 2)By Theresa M. Szczurek
In a recent interview with Charlie Rose, Warren Buffett said he thought the current recession could last two years or more. But Buffett isn’t worried about the future; although today’s economy is bad, the man behind Berkshire Hathaway — which trades in the five- to six-figure range — is confident the market will turn around.
The world’s wealthiest man, Buffett lives simply, invests in companies he understands, and uses the market’s downtime to his advantage by buying while stock prices are low.
“There is a time to accumulate and a time to spend,” Buffett says. “This is the time to spend (or invest) wisely.”
Now would be a good time to follow the philosophy of the “oracle of Omaha.” Use the recession to YOUR advantage by investing today in the future of your company.
Invest in marketing and advertising
Paul Van Erem writes of a study McGraw-Hill Research did of 600 companies between 1980 and 1985 in “Business Growth During Recession.” McGraw-Hill found that companies that continued or increased advertising dollars during the 1981-1982 recession “averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising.” Van Erem also highlights research firm Meldrum & Fewsmith studies that “showed conclusively that advertising aggressively during recessions not only increases sales but increased profits.”
Start by conducting market research and developing a marketing plan to guide your efforts. Then implement several guerrilla marketing — free or low-budget — strategies and tactics.
Proactive companies thrive in a recession — they research, plan, and then take marketing action. As Buffett says, “Time is the friend of the wonderful company, the enemy of the mediocre.”
Invest in your team
As the economy worsens, the grapevine in many companies vibrates with rumors of layoffs. Because of your own stress, you may neglect your staff. Before morale suffers, productivity falls or good people start to jump ship remember the most important element in business and life is PEOPLE. You can turn lemons into lemonade with the right chefs.