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IN A RECESSION, IT'S TEMPTING FOR SMALL BUSINESS owners to close ranks, slash spending, balk at risk, and focus on just making it day to day. But Desiree H. Young, a marketing and strategy consultant who cut her teeth in FEMA disaster recovery centers helping Hurricane Katrina
"The recession is the time to sharpen the saw--that means keep what's working and improve what's not," says the principal of New Orleans-based VentureWalk Business Partners. "It's also a key time to increase marketing activities as the cost for many vehicles has been reduced and getting awareness up now, will position the small business owner to already be known, liked, and trusted as we move out of this economic downturn."
The problem is many business owners' enthusiasm for trying new things has been dampened by discouraging economic news. A seasoned consultant can help get owners back on track by assessing current operations, strategizing expansion and reinvention, conducting market research, aiding product development and branding, developing social marketing plans, and more.
Those aren't the only benefits. "Working with a consultant that keeps his or her ear to what's happening with the Small Business Administration's initiatives in addition to local, state, and federal government programs can be well worth the investment," says Young. "The small business owner can gain access to better loan rates, potential contracts, and more assistance at little or no cost."
After Hurricane Katrina, Jason B. Home and his wife, Monica, the owners of XS Martial Arts Dojo in New Orleans, were eager to launch an expensive re-opening marketing campaign with onscreen advertising in local cinemas. Young had a better idea. She persuaded them to advertise on television, which reached more people for less money. "We were holding at about 65 students, the TV commercials blew it up to 200," Jason says. Now he calls the consultant his business GPS because her advice allows him to navigate operational and marketing challenges that fall outside of his martial arts expertise.
How can you boost the odds of getting your money's worth from a consultant? Young offers these tips:
* Avoid jacks-of-all-trades. "Understand what the person's specialty is," Young advises. "Be wary of anyone who says they can do it all. Anyone who has practiced for some amount of time is going to have specialty areas--things that they've done more than once. You don't want to be the guinea pig." Talk to the consultant's former and current clients and others in the field to assess client satisfaction, professional reputation, work style, and credentials.
* Clearly and jointly identify goals. Hiring a consultant doesn't mean you're off the hook. You need to manage that relationship by having a specific result in mind and gauging progress along the way. Otherwise you can be sucked into a long-term relationship that is comforting but doesn't boost your bottom line. Young always asks clients, "How will you know that I have performed the job that I've been hired to do? How will you know that this project is done and finished?" The answer could be when revenues grow a certain percentage, a grant application is submitted, or a certain number of media mentions are obtained.
* Plan how you'll work together. "It should not be a case where they go off and do work, and you don't hear from them until you get an invoice," Young says. "You should know how the process or project will work, including how many sit-down meetings you'll have, when you'll get status reports, and the best way to communicate."