Posts Tagged 'Economy'

The residential real estate market in the greater Tampa area is continuing to strengthen, a positive trend that began about four months ago.  In fact, some of the latest signs of this trend can be seen in the short sale arena.

In most any market, following the laws of supply and demand, a sale does not occur until we have both a willing seller and a willing buyer.  In short sales, however, a willing buyer and seller are not enough.  For a short sale to proceed, the seller’s bank must approve the deal after the buyer and seller have agreed to the terms.  Let me describe a recent sale to illustrate my point.

I’ve heard a lot of words used to describe this recession, and I don’t think grateful is one of them.  It’s certainly not the most common adjective most people think of when discussing a recession, but that’s exactly how I feel.  Grateful.  Before you think I’m some kind of nut-job that loves pain & misery, let me explain how I got here.

I was affected by this recession just like everyone else.  I experienced reduced sales, reduced income, evaporating profits, higher debt ratios and business losses.  In one case, the losses were enough that I chose to close one of my businesses.  These are not the sort of things I enjoy.

Running a business is tough enough without trying to attract customers with a marketing message that is outdated, irrelevant, or just plain wrong, yet I continue to see businesses struggling with exactly these kinds of messages. A great message that has outlived its relevance to consumers is no longer a great message. Let me show you an example of a company that has effectively used this principle to expand their market share during this recession.

This economy gets blamed for everything. Granted, it IS causing plenty of problems for a lot of people. But that’s no reason to let other issues needlessly drain the profitability of your business. Let me explain what I mean.

After looking at dozens of businesses and talking with their owners, I saw a particular “economic” situation far too frequently. These businesses were struggling with reduced profits, or in some cases serious losses, due in part to a steep decline in sales. In every case, the owners told me this decline in sales was due to the economy. That’s where they’re missing the boat. What’s more, it’s the unspoken implications of this statement that make it so dangerous.