STRATEGY #10 TO SURVIVE A DOWN ECONOMY

By Kevin M

When careers and money become questionable foundations in our lives, what’s left? It’s often only in bad economies that we even entertain the question.

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help us deal with the bad economy. Our topic for today, the final strategy, Strategy #10:

Seek fulfillment beyond your work. In a world where careers are no longer either peaceful or progressive, self actualizing through your work may not be the path it’s been in the past. Fortunately, there are plenty of opportunities to find fulfillment outside of work. Take more active roles in regard to your health, family, faith and community.

When times are good, and jobs, money and credit are plentiful, there’s a tendency for us to become self-contained. We self-actualize through our work, and surround ourselves with the things that prosperity enables us to afford. But when the foundations of that life are shaken or even dismantled, where do we turn to find comfort, platforms from which to rebuild and a sense of self-worth?

Self

The word has an almost negative connotation, but during prosperous times when work is plentiful, it’s easy to define ourselves principally by the work we do. But is that who truly who we are on the inside? And if our work has been downgraded, or is completely gone, then who are we? Now is a good opportunity to spend some alone time, purposely visiting (or revisiting) the question, who am I and what do I stand for?

When we’re on the fast track at work, a certain go-along-to-get-along mindset tends to seep into our lives. Things are going well with work, we’re making money—and all of that is good—so we need to put this or that aspect of our lives on the back burner for later. But maybe now IS later!

Spend some quiet time thinking, or talking with family and friends about the type of person you are, what you may be suited for, and to consider and discuss some plans you may have been nursing but never had the time to act on.

Family

Men are especially guilty of putting excessive time into our careers, and claiming to be doing it for our families. While this is necessary to a very large degree, we sometimes pursue career success in the name of our families without ever stopping to see what it is that our families want.

Recessions are a good time to take this issue up with our families. Hard times inadvertently help us to find more time to be with our families. If you’ve lost your job or your business has failed, one silver lining is that you’ll have more time to spend with your family. Take advantage of this. Find out what it is they want from you, have some fun and build some memories. A period of unemployment may be a financial negative, but it may also be a time to bond with family in a way that will strengthen the family unit and build cherished memories that will last a lifetime.

Community

How many of us have neighbors we don’t even know? That’s a sad statement on our times, but also fairly typical as we increasingly immerse ourselves in electronic media such as wide screen TVs, computer games, cell phones, I-pods and the computer on which you’re reading this post. There’s real utility in expanding our networks of contacts beyond our immediate communities via those media, but we shouldn’t use those networks as a virtual replacement for those of the flesh and blood variety either.

We may not think of it in this way, but the physical communities we live in are our most basic networks. While were searching the World Wide Web for networks around the globe, one already exists right outside the front door. When we’re consumed with work and looking to expand virtual connections, there’s often little time left for involving ourselves with the people and circumstances in our most immediate environments.

People who are physically present are also in the best position to provide direct help. Watching each others kids, running errands for one another or helping with a major repair project on the house or car when we can’t afford to pay an outsider, are examples of things we can’t get from the worldwide web. Never are we more dependent (and interdependent) on the people around us than when we’re experiencing a crisis.

But community is something which must be developed and practiced on an ongoing basis, and in order to have a network of willing helpers, or even just people to be with us to listen during times of trouble, we first need to be willing participants in that community. If you suddenly find yourself with more time on your hands due to job loss or reduction in hours, or even just a fear of what the future may hold, seek greater involvement in your local community. One of the very best ways to find helpers in that community is to become a helper yourself. We can all help one another in so many capacities, and that’s the basis of any successful network.

Faith

It’s become common these days to dismiss faith in a higher power as “old world”—something people believed back when no one knew any better. Against the backdrop of science, technology, all encompassing careers and an admittedly very impressive entertainment establishment, it’s easy for faith to seem irrelevant. But humanity has practiced religion from its very beginnings, well into the last century and still in many quarters all over the world today, so we can’t be quick to discount it’s relevance.

When a job loss or some other disaster befalls us, God can suddenly seem closer to us, in much the same way that we can never realize how many stars there are in the night sky until we find ourselves in a place without civilizations lights. Absent our usual props, we can become more open to the possibility of a higher power and the implications that it carries for our lives.

Being a person of faith, I’m biased here. But one of the most liberating things I’ve come to learn in my own faith journey is that it isn’t all about me, and it isn’t all about here, and it isn’t all about now. The world, the future of civilization and even my very life don’t depend on my plans and endeavors working out the way I expect them to. And you know what? It’s OK. A higher power will reset the pins even if I somehow knock them all down, and life will go on. Even if things look dark right now, at some point they’ll get a lot better.

Seek out faith, or reacquaint yourself with it if you grew up with it and fell away. Few endeavors in life can provide the comfort and sense of self-worth in the face of catastrophe that a solid faith walk can.

Health and fitness

Often when we’re in career high gear, and up to our necks in tasks, agendas and phone calls, a few things slip past us. A big one is health. Let’s face it, taking care of ourselves takes time, time to prepare healthier meals and to exercise. When our schedules are packed, it’s easy to let these efforts slide. With the slowing of the business treadmill, there may be more time to devote to taking care of our bodies.

Ultimately this is a good thing. Though we don’t normally think of health and fitness in financial terms, in fact they carry a huge impact. If we can work to improve our health, many other plusses will come our way. Better health equals more energy, self confidence and a better outlook on life. All of these are assets in what ever we plan to do in life, including getting back on the career and business treadmill. We can prepare our bodies now for the next shift in the economy, which ever way it goes.

Causes

I’m not deep into politics, but we all do our share of complaining about the political system. In truth few of us ever get truly involved. There are issues all around that disturb each of us, and we can get involved in the political process as a way of making things better. I’m not talking about pushing for a change in national political agenda, but there’s plenty that can be done at the local level where our voices can be heard. And sometimes movements get started at the local level then go national. When work is all consuming, there may not be time to get involved, but in the current slowdown, that time may be available.

Consider getting involved in charitable work as well. We may not have money to give to help others, but we all have our time and effort. Just like with faith, working to help with activities that are completely beyond our own lives helps us to realize that everything in our lives doesn’t and shouldn’t revolve solely around us.

Bonus points: involving ourselves in political or charitable activities may not provide us with a job or income, but either could put us in contact with people or circumstances that can.

Hobbies

I saved this one for last not only because it’s the most fun, but also because it may also be the most productive. Most of us have hobbies – activities or interests usually having nothing to do with our career paths. But what ever we may work at as a career, it’s our hobbies which often define our passions. And it’s from those passions that future directions, including careers, can be found.

If you’ve recently lost your job, feel certain you will or have hit a ceiling above which you don’t expect to rise anytime soon, now may be an excellent time to look to the future in the things that you like to do. You spent years of your life working at something you may not like much (or might even hate); if that’s come to an end, maybe it’s time to look closely at doing what you love. Inventory your list of hobbies, interests and passions, and consider if there may be a future career lurking somewhere in there, even if only as a side business. If we can work at something we feel passionately about, our careers may not feel so much like work. Many people begin new careers and businesses doing just that.

If it seems as if career and finances have taken a turn for the worse, maybe it’s time to take a closer look at these “softer sides” of life for answers.

STRATEGY #5 TO SURVIVE A DOWN ECONOMY

By Kevin M

In the dreary job market of the moment, people are having difficulty with two major areas in particular: keeping a steady income flow and increasing that flow. The increasing level of unemployment is not only eliminating jobs, but it’s also putting a lid on raises and promotion opportunities. This is in large part, the driving force behind the credit crisis and the epidemic of foreclosures and bankruptcies. Is there a way to deal with it without taking unnecessary risks?

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help us deal with the bad economy. Our topic for today, Strategy #5:

Be prepared to cultivate and balance multiple income sources. You may have a full time job and a part time business, or vice versa. Think of your work in terms of an investment portfolio, in which diversification adds strength. There are probably several jobs you are potentially good at; always be on the lookout for new opportunities.

Why increasing income or broadening the income base matter

Recessions produce a storm cellar mentality, a time when most people become concerned primarily with keeping what they have. But even if you keep what you have—your job and your current income level—you’re still falling behind. Official consumer price index (CPI) numbers aside, most of us realize that it costs more to live each year. Health care costs, education, utilities, real estate taxes, auto insurance, car repairs and many other expenses that we pay for products and services we can’t live without have been rising much faster than published numbers suggest. Meanwhile, gasoline and food costs bounce in unpredictable patterns. And what about preparing for retirement? If it often seems overwhelming it’s because it is!

If you’re in a job or business in which options to expand income are limited, it may be time to look outside the box for solutions. If you have a job that’s stuck in neutral, a part time job or side business may be the only way to increase your income. If you have a business already, it may be time to consider working in lines that are unrelated to what your business does as a primary function. If you can take on business lines that run in counter cycles to your main business, one for which peak season occurs when your mainline is in slow season, you may have found a solid way to even out your income stream.

Additional income aside, adding multiple sources will help to strengthen your income base, making you less vulnerable to job loss or income declines. Just being involved in different lines of work can often open doors to opportunities that would never surface if you stay exclusively in your regular occupation. Think wide, rather than deep!

I’m not saying that this is going to happen, but I will suggest the possibility…we may be on the edge of a time when job and income security can no longer be trusted to a single job or employer. We’ve known since well before the current recession that we don’t have anything like the job security workers enjoyed a generation or two ago. In fact, it’s now close to impossible to plan as much as a five year stint with one company with any certainty.

It’s worth noting that major changes often take root in society years before they’re even identified and labeled. True, we’ve been operating in an environment of one worker/one job for decades, but there’s more than a remote chance that a change to multiple income streams is in the pipeline already. Recessions often amplify and accelerate trends that were developing before the downturn hits. We can’t know for certain if that’s the case right now, but it may be worth some preparation just in case.

I’m having trouble keeping one income source, how do I get a second, or a third?

While it might be tempting to throw up our hands and resign ourselves to the fact that the economy stinks, and there’s little to do but hold on to the job or business we have and hope to tough it out until the next recovery comes and lifts all boats—including ours—but is that a plan or just a hope? I’ll dare to suggest that we need to be proactive, even now when opportunity seems to be hard to achieve. For the following reasons there may be more opportunity out there right now than there has been in a long while…

1. Many companies can no longer afford full time employees and are hiring part timers and outside contractors
2. With large numbers of people unemployed and underemployed, non-traditional work arrangements are becoming more common and accepted than ever
3. Un-/under-employment is advancing networking as the unemployed and marginally employed band together seeking opportunity
4. The internet has enabled would-be entrepreneurs to market to people across the globe at relatively low cost
5. In nearly every industry, large enterprises are in retreat, opening markets to upstarts and smaller competitors who can offer a better way
6. New trends—like thrift, energy efficiency, and cleaning up the credit mess—are emerging creating opportunities that didn’t exist two years ago
7. Financial hardship is causing both people and organizations to seriously consider new ways of doing business that they wouldn’t have entertained in more prosperous times

Each of these factors represents a single overriding dynamic: change. And each presents an opportunity either to stabilize or increase our incomes.

Worried that you job is in jeopardy? Offer to stay at your current job at reduced hours, making up the income loss with a similar arrangement with another company. Did you try a business idea a few years ago that didn’t make it? Maybe it’s time to dust it off and try again—a lot of the competition has quietly disappeared. Have a product or service that you haven’t had much luck selling locally? Maybe you were thinking too small; start a website, link it to other websites and try peddling to the whole world—you can have a marketing budget of zero, which will give you the staying power to keep at it until it works. Not having any luck finding a new job? Get connected with anyone and everyone you can on the social networks—Facebook, Linked In, etc.—and start looking for an *opportunity* rather than a job.

The point is, part time jobs, job sharing, contract arrangements and side businesses are out there, but require a bit more thinking than in the past. Start looking at situations from outside the box, and the opportunities may be more obvious. The part time side business you start today—yes, right here in the middle of the worst economy since the Great Depression—may be your full time career a couple of years from now.

STRATEGY #9 TO SURVIVE A DOWN ECONOMY

By Kevin M

In the best of times, borrowing seems to be a sensible way to get the things we want but can’t afford to purchase in full right now, but we’re sure we can tackle later with a predictably increasing income stream.

But when economic fortunes shift into low gear—as they are now—the same debt accumulated during better times can become a heavier burden, even one which is impossible to bear. Other than paying debt down and eventually off completely, there isn’t much we can do about the debt already accumulated. But the Great Recession should be a wake up call to all who might have come to view debt as a traveling companion in life.

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #9:

”Envision a future without debt, and then pursue it.” Gradually pay down—then pay off—your debt. This includes your mortgage. It should go without saying that lowering your cost of living will be a crucial element in this effort as well. (Are you noticing a pattern?)”

Is that even possible any more?

Stop the madness

Even if you haven’t lost your job in this economy, there are enough people who have that you have effectively been forewarned. Debt is NOT your friend, and if you harbor any notions that it is, now is a stellar time to change that view.

Here are steps you can take to get the situation under control if you now have substantial debt:

1. Stop taking on new debt—new debt it not the solution for old debt
2. Cut your living expenses immediately
3. Build up a savings cushion large enough that you can live without credit
4. Once you have a chunk of savings, begin paying down your debt with any system you’re comfortable with
5. If you have debts you can’t pay, contact the lender and attempt to work out a settlement for a reduced payoff; if you have savings, you may be able to get a better settlement with a cash offer.

Once out of debt, stay out of it. If you have to pay for something with a credit card, you can’t afford it. Find a cheaper way. Buy second hand cars and pay cash. If you need financing for college, go to a less expensive school, work your way through and keep any student loans to a bare minimum. Student loans aren’t manna from above, they’re hard debts that will need to be paid back in an uncertain future.

If you buy a house, make the largest down payment possible (20% minimum), keep the term short (15 years) and plan on monthly prepayments to wipe it out sooner. Buy a less expensive home that will enable you to finance under those terms, and if you can’t, you might be better off renting. The practice of perpetual debt has been the undoing of the current housing market.

Save your optimism for your career, your health and your social life, but don’t bet real money that you’ll be able to pay for something over time that you can’t afford now. That thinking has proven to be a sucker bet for too many households right now.

A return to the recent past, or a different kind of future?

For many today, the 1990s are a decade remembered as a time approximating what we might call “normal”, that is, it was a time of economic stability and growth. But often when we think of a time as normal, what we really mean is something more favorable, even desirable, and those were the conditions that prevailed for most of that decade. No one knows whether or not we’ll return to the level of prosperity seen in the 1990s, a decade of low unemployment, low gasoline prices and low interest rates, and what seemed like a certain future. But here’s a clue: the circumstances that produced that gilded decade—the collapse of the Soviet Union and of oil prices in the aftermath of the Gulf War—were events of historic proportions, unlikely to be repeated.

If we’re going to look to the past for clues to the future, we can’t focus our attention on any one time period, especially the more recent ones. The predictable prosperity of the 90s doesn’t in any way invalidate the very different conditions that existed in most of the current decade, or of the 1970s or the Great Depression of the 1930s, another event of historic proportions that molded the spending and savings habits of two generations for decades after.

No one knows what the future holds, so what do we do? Best answer: we err on the side of caution.

What that means, in practical terms, is that we structure our finances on the assumption that the future will see unpleasantness not unlike what’s been experienced in previous times. The idea of taking on debt in that environment—least of all, long term debt—should be something we seek to avoid at all costs. A debt is a fixed cost that will not fall commensurate with a drop in income. For that reason alone, it must be approached with a great deal of caution, especially in times of uncertainty or recognized weakness.

The Payoff: Living without debt

For some, living without debt means living without things that we want that debt can pay for—a form of deprivation in many quarters. But consider a different future, one in which debt doesn’t rule your life…

1. A debt-free position, combined with low living expenses and a healthy bank account balance means you’re beholden to no one.
2. Better sleep and more peace of mind.
3. Not being crushed by a job loss the way it will a more typical household.
4. You’ll still have bills to pay, but you’ll have fewer of them.
5. Less money going to pay monthly debts means more money for savings, a problem for many households even in the best of times.
6. Greater mobility, including the ability to pursue new job and business opportunities that others weighed down by debt can’t consider.
7. A life that’s more people-centered and less money-centered.
8. And finally, an unencumbered mind is a productive mind; absent the worry of debt, the ability to tap your creative energies will be more possible than ever.

What ever the future holds, yours will be more positive in everyway if you aren’t carrying a load of debt along with you.

Is that a future worth working toward?

STRATEGY #8 TO SURVIVE A DOWN ECONOMY

By Kevin M

A robust bank account has traditionally been considered to be a desirable asset to have, even a sign of prosperity. But in the past 20-30 years, with easy credit and almost predictable double digit returns in the stock market, conventional thinking came to view traditional savings as boring and unproductive. Being “fully invested” became the new mantra.

But given the current state of the economy, and of credit in particular, it’s a good bet that many people followed the new directive to their own detriment. Alas, credit lines can be shut down like a faucet, and stocks and mutual funds are really speculative investments and not true savings.

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #8:

”Accumulate savings. Make it a lifetime activity. This is the best insurance you can have against sudden income disruptions. At the risk of being redundant, you will need to lower your cost of living in order to do this.”

Previous generations viewed savings as a necessary part of survival, almost as important as earning a living itself. But today is a new world, with new rules—or is it?

Playing fast and loose with the definition

It isn’t ridiculous to consider that recent cultural understanding of savings has distorted the term beyond it’s practical purposes. So what are savings?

First, let’s take a look at what true savings aren’t:

1. Stocks or mutual funds
2. 401k’s or other retirement accounts—this is doubly true if those accounts are primarily invested in stocks and mutual funds
3. The equity in your house
4. The unused portion of your available credit card limit or home equity line of credit
5. A certificate of deposit or other cash asset that’s been pledged as collateral for a loan

In one way or another, each of these vehicles has come to be viewed as “savings” in many quarters. But stocks and mutual funds rise and fall in value, and the declines often coincide with the need to withdraw funds, making their reliability worse than suspect. Retirement plan withdrawals have tax consequences, and both home equity lines and credit cards are no longer as lucrative as they were just a couple of years ago—and plunge the user deeper in debt to boot. And a pledged asset is essentially canceled out by the liability attached to it. None of these represent true savings in the practical sense.

The only true savings then is, well, savings! Like a boring savings account, money market fund or short term certificate of deposit (CD). People look at the interest rates being paid on these accounts and bristle at committing money at such low returns. But the central point of savings isn’t return on investment, but safety and liquidity. Savings shouldn’t be primarily an investment, but a reserve against hardship. Recent events in the economy are showing that hardship isn’t necessarily as far away as we once thought.

Getting started

In Start and Grow Your Nest Egg Even if You’re Broke we listed several ways to build up a healthy savings balance in relatively short order, summarized as…

1. Sell your stuff—the little extras hanging around that you don’t need any more
2. Sell your bigger stuff—some major items you really love but don’t need
3. Bank a bonus
4. Take a part time job—temporarily
5. Make minimum payments on credit cards and redirect the extra to savings
6. Forego some luxuries until your savings reach a desired level
7. Go on a spending diet—make an across the board cut in your budget, banking the cuts
8. Take on a side project or contract job

(The list above is greatly abbreviated; you can click on to the original article for a more detailed discussion.)

The key is often in the startup; a quick build up can provide the motivation to keep the process going so that the accumulation of funds becomes a habit even for the person who’s never done it in the past. $50 or $100 a week can be a steady way to grow a bank account that already has a few thousand dollars in it, but if it’s the entire plan, it can require years to accumulate a relatively small stash. The process is as much psychological as it is financial, and early success tends to feed on itself while gradual accumulation has the potential to be derailed early in the process.

How much is necessary?

Many financial planners and counselors suggest having a savings cushion equal to three to six months of living expenses—the lower end being more appropriate for salaried employees, the higher for self-employed and commissioned workers. But these are just general guidelines.

In truth, how much you should have is totally subjective. Start with the question, “how much would I need to have safely tucked away that I’d feel reasonably secure in my financial position?”
The answer to that question will be different for everyone. One person might need a 12 month reserve to feel secure, another might be good with just three.

While it’s true that unlike the Great Depression, today we have unemployment insurance to provide partial insulation from job loss, imagine how much more secure you’d feel having a three, six or 12 month income reserve in addition to a 26 week (or more) unemployment benefit?

Once you reach the desired savings level, it will be time to begin accumulating funds for that other form of longer term savings—investing. And once your short term is covered, saving and investing for the long term will be that much easier.

Recent developments in the economy warrant a return to a more traditional view of savings, establishing it, growing it and considering it to be purely a survival asset and not viewed merely as part of an overall investment portfolio. In today’s environment, a job and income loss should not only be expected, but planned for. Pure savings represent perhaps the best insulation possible.

STRATEGY #7 TO SURVIVE A DOWN ECONOMY

By Kevin M

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #7:

Reduce your cost of living. What ever level you’re at, this effort will be crucial in the years ahead, much more so than it’s been in the past. Don’t assume a quick return to the easy money debt of the recent past will once again make thrift unnecessary. That thinking is a huge part of how the economy landed where it is now.

Simply put, it may be time to lower our sights in regard to our standard of living. Does that mean we lower our goals and make a conscious choice to accept a lesser life? Not at all! It would be better to say that it’s time to transfer our aspirations away from acquisition of the things we hope to own, and redirect ourselves toward goals in careers, savings and life in general.

Our lives after all, are what we do, not what we own.

It really may be different this time

Previous downturns had a cyclical nature to them: credit piled up as stocks and housing rose in value, followed by an almost predictable contraction, which itself ultimately would be ended by an even more generous credit expansion. In this go round, credit itself IS the problem; defaults and foreclosures are still being worked out/off, and lenders are likely to be gun shy for years to come. Translation: we won’t be able to borrow our way back to prosperity as in the past. The era of mailboxes full of credit card pre-approvals and a home equity line for every homeowner has probably come to its inevitable conclusion.

For generations, living beneath ones means was the difference between survival and destitution. Easy credit removed that imperative as both today’s lean periods and tomorrows desires could be quickly covered by writing a check on a credit line. That in itself kept previous economic expansions going longer than they might otherwise. It’s absence may very well keep the downturn around longer than we expect.

On the employment side, millions of jobs have vanished, many probably permanently. The loss of jobs to technology and off-shoring was well entrenched even before the current recession. The downturn has left almost no sector or industry unaffected. If there is an economic tidal wave developing which will be the source of new jobs in the near term it has yet to materialize. Recovery in employment may be years—not months—in coming.

We may have entered into a time when both jobs and cash flow will be less certain than they have been at any time most peoples lifetimes.

Letting go of a few things—and a few ideas

As depressing as that assessment seems, there’s no advantage in being defeated by it. Reality is what it is, the true variable is our response to it, and that’s where we have choices. We can choose either to be rolled over by changing circumstances, or to adjust and thrive in them.

Pursue a better quality of life, rather than a higher standard of living. Too much of the thinking over the past few years has been oriented toward a steady increase in standard of living, filling life with physical evidence of success. But as we’ve seen in the last couple of years, the trappings of prosperity of are a poor substitute for the real thing. Quality of life—the enhancing of our general well-being—usually doesn’t require a whole lot of stuff and conveniently is also usually less expensive. Let go of the stuff and concentrate on filling life with the people and activities that will bring deeper satisfaction than stuff ever could. The time is right for this shift since so many are in the same boat.

You can’t have ALL the candy in the store, but maybe you can have some of it. The past couple of decades have convinced us that we can “have it all”; we could buy what ever we could afford and borrow for what ever we couldn’t. Reality has always said we can’t, and right now it’s screaming louder. Stop thinking about having it all—that’s a manufactured TV image of life and none of us ever needed that in the first place. Focus on the few things in life that you do want, those things that mean the most and will have the greatest positive impact on your life. Choose one or two “vices”—activities or possessions that will bring the greatest happiness, and put everything else into a strict budget. You probably don’t need all of the toys and activities you have in your life, so slim the list to the small number that provide the greatest satisfaction.

Big ticket items have long tails attached. With big ticket purchases, the carrying costs are established the day you close the deal. There’s little room to reduce expenses on a house or car purchase. The payments are fixed, and the only way to lower the expense is to get rid of the asset, which isn’t always practical or even possible. In the case of a large house, there are variable expenses which are equally difficult to contain. What ever it’s other advantages, generally the larger and more expensive a house is the worse it will be for your budget. Taxes, utilities and insurance will be higher than on a more modest home. Maintenance will be more demanding and costly, and older or lower end furniture and cars don’t always look or fit so well. Keep all of this in mind when making major purchases, or in deciding to keep or dispose of past purchases and proceed accordingly.

Be intentional about being content. It’s been said that happiness isn’t about having what you want, but wanting what you have. Instead of aspiring to have a bigger house, a second home, a bigger car or what ever, instead aspire to be a better employee, business owner or family money manager. Seek those paths not as ways to expand your empire of stuff, but to increase income, build up savings, pay off debt—the activities of life that build a real future.

Finally, dig in for the long haul. It’s human nature to assume that the good times are “normal”, and that downturns are mostly temporary disturbances getting in the way of better times. But it’s highly possible that the forces at play in the current economy will become permanent. Don’t assume a perpetually higher income, or even steady employment, and plan your spending and budgeting accordingly. When it comes to money and planning for the future, conservatism is generally the better path than rosy optimism.

STRATEGY #6 TO SURVIVE A DOWN ECONOMY

By Kevin M

If there’s ever been a time to adopt flexibility as a strategy, it’s now. The certainty we knew only a few short years ago is currently failing us, and our progress and even our survival may rest on our willingness to adapt to change and to new rules as much as anything else.

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #6:

”Be flexible in your plans and ready to adapt to changing circumstances. If your job is eliminated, offer to contract or to work part time for the same company. If you develop multiple income streams, a shift to a part time arrangement may be to your advantage on a number of fronts. Be prepared to convert a negative development into an opportunity.”

Think “outside the box”

Often the first thought upon the loss of a job, or the prospect of it, is to replace it with a comparable one. But in many industries, a comparable position is either non-existent or too far into the future to be relied upon.

Instead of thinking “job”, think “opportunity”. In fact, think of it in the plural: ”I’m looking for opportunities.

You can miss a lot of income-paying situations by focusing too specifically on the search for a full time, benefited position paying something comparable to what you’ve made in the past, especially if your industry is in some stage of long term decline.

Job sharing, part time, contract work, a side business, a job without benefits and temporary positions, or a combination of two or more, all need to be on the list of possibilities. At a minimum, you can continue the search for the perfect replacement job while you’re working at something less.

This approach should be standard procedure if unemployment benefits have been exhausted, but also worth considering even if they haven’t. Working, even at below your past income level has a few things that an unemployment check can’t provide: a chance to make new contacts, learn new skills and—very important—to be out circulating in the business world. If you lose your job you will make mistakes finding your new way, but it’s important to be out there pursuing it, knowing it’ll take time to get it right.

Guard your time

In a down economy where jobs are at risk, there’s often a temptation or even a requirement to work harder and longer. But in many instances, working harder and longer isn’t earning you more money, or even keeping your income level.

It becomes crucial to earn an income commensurate the time an effort you’re putting into the job. Working a job that requires significant uncompensated time could be depriving you of time that could be spent working in capacities that might improve your cash flow or generate stronger future prospects.

Many times people who are looking for work find it in commission-only sales positions. Let me suggest however, that if income is the primary driver in the choice of careers, a commission situation is probably not what you’re looking for. You’ll have to make sales before receiving any income, and that’s an especially difficult feat to pull off in a weak economy. If sales veterans with experience, product knowledge and contacts aren’t having much luck, how successful do you think you can be as an upstart?

Be careful of common sales fields like real estate, insurance and car sales; people get into them because they’re easy entry fields, but relatively few have the talent or killer instinct to really make them work. The problem is that you can spend months of uncompensated time in commission only positions before realizing it isn’t going to work out, and by then your situation will probably be even worse.

Because there are fewer real job prospects in a recession, it becomes even more important to work in capacities where income is more certain and new skills, contacts or lines of business can be developed.

Guard your money

This means staying out of business deals that will tie up your money. In economic downturns, especially severe ones such the one we’re in now, people often take gambles they normally wouldn’t in an attempt to improve their circumstances. This might involve putting large amounts of money into investments or business deals that have less than certain outcomes.

While now might be an excellent time to start a new business, you probably want to avoid those that are capital intensive, requiring the purchase of an existing business, a large inventory or major equipment at significant cost.

It’s one thing to be optimistic and want to bet on your future, but betting real money is another matter. Businesses of all kinds are failing in this economy; if you’re unable to make a success of a venture you’ve poured most or all of your life savings into, insult will be added to injury if you can’t sell the business and recoup your investment.

In another direction (but same principle) there’s been a considerable amount of hype surrounding the purchase of real estate for investment purposes. Much of this thinking is based on the fact that property values have come down considerably from their recent peaks. But jumping into investment real estate when you have no prior experience is an exercise fraught with financial danger if the main motivaton is a play on lower prices.

Prices may be less than they were a couple of years ago, but unless you can buy a property for substantially less than it’s CURRENT depressed market value, it may not be a deal at all. Leave that business to the professionals who do full time. Making one bad deal early will put you out of that business before you even get out of the starting blocks.

Here’s a cosmic law that can save your life savings: when you absolutely, positively need a deal to pay off big, it won’t! Unfortunately, business deals don’t cooperate with our circumstances.

In this economy, capital is hard to replace and therefore it’s something that is best conserved. Bet on your skills and abilities, not your expertise at managing assets. Leave your retirement assets, your home equity and other savings for their original purposes, and if necessary, as a cushion for survival. Leave speculation to the professionals who know it well, and how to profit from it.

Mobility as a virtue

So far we’ve talked about being flexible in attitude and strategy, investing your time in income producing activities and preserving your capital, but all three pave the way to one overriding objective: mobility.

It’s important to realize recessions mean change more than anything else. Some businesses come up, some go down, old industries disappear, new ones arise, assets change hands, and so on. Some geographic regions will grow, others will decline.

The key is positioning yourself to take maximum advantage of that change. You can’t do that if you’re slavishly devoted to a declining industry, hoping to squeeze a couple more years of paychecks out of it, or if most or all of your money is tied up in a static investment or business venture.

This is a time of transition, and as much as we may want so much to dig our heals in and hold on to what we’ve known in the past, it’s often a losing strategy. Opportunity tends to come to those who are most open and prepared for its arrival, even if they aren’t entirely certain exactly how it will play out.

The future is waiting, so be flexible, travel light and be prepared to move as opportunity arises!

STRATEGY #4 TO SURVIVE A DOWN ECONOMY

By Kevin M

When ever the economy turns sour, there’s a general tendency to stay on current jobs as long as possible, under the belief that it’s better to stay where we’re established than to go to another company where we’ll be the new/low man on the totem pole. In addition, an often reflexive response to the news of a job loss, or an impending one, is to immediately seek new employment at competing firms within the same industry.

On the surface, these strategies have merit. In the former, we hold on as long as possible, hoping that either we’ll keep our current situation as long as possible, or maybe we’ll even out last the downturn. It seems to make sense to stay in the same career and in the same industry—after all, that’s where our skills are concentrated, and where we have the greatest income potential. But do these represent the best strategies?

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #4:

Consider a career change. This is especially true if you’re in a declining industry. If the end is certain, take action sooner rather than later. Don’t hang on trying to be the last man standing. It’ll be painful no matter when you do it, but always try to operate on your own terms and in your own time, not on someone else’s.

The stay-or-go decision

A career change isn’t an endeavor to be taken lightly, especially during a recession. But most people are aware of a job loss, often months before it actually happens; the question is, do you ignore it and hope for the best, or do you use the time you have to some advantage? Research the trends in your industry in general, and at your company in particular, and be realistic about the prospects. Ask the following questions:

What are the dominant recent trends at my company and in my industry? Pay particular attention to industry changes. Are there trends affecting your entire industry? How is your company handling those trends? Is off-shoring or outsourcing functions and departments critical to industry or company survival? What does that mean for you?

What are the likely future prospects in my current industry? Is the industry growing or declining? If it’s declining, is it primarily because of the current state of the economy, or—very important—was the decline evident even before the recession? If it was in decline prior to the recession, it may be a more significant longer term trend that was exaggerated (but not caused) by the general economic troubles. In that case, circumstances may not improve much when the economy does.

How does my skill set match up with those prospects? If your industry is changing, evolving, how well positioned are YOU in the midst of those changes? Can you upgrade your skills to match the trend, or do you mostly see yourself hanging on until retirement or a severance package? Does the survival of your company depend largely on its ability to function with fewer employees? What does that mean for you?

What other industries might be a good fit for a person with my skill set? This is a central question to ask while you’re still employed. List and evaluate the skills you have—what other industries or careers might be a natural move for you? How difficult would it be to supplement your existing skills with new ones that will make you more employable. Discuss it with trusted friends or with people employed in careers you’d consider. A large part of the stay-or-go question will be answered by the career alternatives afforded by the transferability of the skills you already have.

The opportunity cost of staying where you are

Not many people think in terms of opportunity cost in connection with staying on their present job, especially during recessions. But in point of fact, there are opportunity costs involved even if you don’t recognize them.

During recessions, some companies and industries don’t survive. Others survive, but only barely, often collapsing after expansion in the general economy takes hold. That’s the part we know and can see. But there’s a flip side to this dynamic.

Bad economies have a way of leveling the playing field, of bringing down the established companies. In the process, opportunity arises for new companies—businesses who will come in and do the work of the declining ones, but do it cheaper, faster, better and maybe with additional benefits. This transition is often happening just below human sight; while most people in the industry are focused on keeping their jobs with established companies, these upstarts are entering the market and quietly displacing older companies.

In some cases, entire industries are being replaced by new ones—consider how the print media is rapidly being replaced by the internet. While industry replacements may be easier to see, they aren’t always so easy to play from an employment standpoint.

By staying on at older companies in the hope of preserving some sense of security, a very real opportunity cost develops when we fail to see that long term, the real employment opportunities may be at some companies that haven’t been around all that long. And while older, less competitive businesses are declining, strong upstart companies are coming to the marketplace who will dominate the future and be the source of better jobs. And it’s often during recessions that such companies are gearing up, hiring and grooming future leaders. This is generally the best time to get into these companies, while they’re growing and hungry for new talent.

Testing the waters first

If you’re unsure of a move to a new career or to a job outside your current industry, the best way to test the waters may be through a part time job. Emerging companies and industries may be more open to part time arrangements than the established ones, since their employment patterns may also be in a state of flux. Many times, organizations that wouldn’t consider hiring you for full time work, will be less hesitant in hiring you for part time. Once inside, you’ll have a chance to prove your worth, even if you don’t have all of the preferred qualifications.

A part time job will provide an opportunity to try out a career situation without risking your current job—as well as providing a ready place to work if you lose your full time job. Getting into a new career or industry and actually doing the job is the best way possible to make a pending change real. In addition it’s way to gain valuable new skills, or—just as important—to find out which skills you need. It’s also a chance to gain some valuable new contacts; many people shy away from changing industries or careers because they don’t know anyone in the field—problem solved!

Though there is always risk involved when changing careers, those risks can often be managed. It’s usually better to start managing change early on, when the handwriting is on the wall but the ax has not yet fallen. And sometimes, the greatest risk of all is to stay where you’re at and do nothing.

By Kevin M

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #3:

“Improve your repertoire of skills constantly. The better you are at what you do the more valuable you will be to your employer. The improvement can also be in preparation for future endeavors. It’s never a bad idea to have a skill or skill set which is totally unrelated to your primary employment. Hint: if it’s something you like to do, it may not even feel like work.”

The Importance of Skills

The job market today is largely skills driven. You may not get a job that you apply for if you lack a specific skill the employer is looking for, even if you have the education and experience for the position. In today’s job market there’s no shortage of credentialed candidates in most fields, so the advantage will often go to the person with the widest set of desirable skills.

Number of years experience may not be much of a factor either, if most of that time has been spent with a single employer. Often, the longer we’re on a job the greater the potential is to get, well…stale!

When we’re on one job for many years, we’re often not getting better at what we do so much as we’re becoming more comfortable at doing the job we have. But that comfort can be a negative when the time comes that we’re looking for a promotion or a new position entirely. Also, since multi-tasking becomes the order of the day following layoffs, the survivors may very well include those with the widest set of skills, not necessary the ones with greatest tenure.

But even if you aren’t learning new skills on your current job, you aren’t powerless to make changes.

Skills Worth Learning in Nearly Any Career

Here are some suggested skills which can either improve your abilities on your present job, prepare you for a new job, or perhaps even for a new career. There is also the very real possibility that a new skill could open the door to self-employment, especially in combination with other skills you already have. The key is to either go deeper in your ability with the skills you have, or to learn entirely new ones that will make you a suddenly more desirable prospect.

Computer software systems. Most every industry today uses some form of computer software that is unique to that industry, in addition to more general packages that are common across different industries, such as Microsoft Office. Move from being a general user of the software to an expert user.

Take a course on the software system used in your business, find out all that it can do, and become The Expert in your company, the person others come to when they want to know “how do you…?” Find ways to improve system usage, or to incorporate new uses into your company’s workflow, and you may become a key player in your company in short order. Learn other systems in use in your industry and you may expand your employment possibilities beyond your current job.

This can often be accomplished by taking a course at a local college, or with an online training program or a tutorial package you can purchase.

ANY type of repair skill. If you can fix just about anything, you’ve ensured yourself a place in the workforce. We’re not just talking about office work here! If you work in the trades, or in any capacity close to them, learning a parallel skill can enhance your career, or open up new paths. In Can You Fix Things? Try Elevator Repair, Larry McMahon told of how an auto repair course taken in high school helped prepare him for a career in elevator repair, a field that often pays in excess of $100,000.

Pubic speaking. A lot of people have a mortal fear of speaking in front of groups, and that’s precisely why the people who can are usually the ones running the company! Take a course in public speaking to learn the mechanics, but more than anything, this is a skill that improves with practice. The more you do it, the more comfortable you become with it, and that’s the major hurdle that needs to be crossed. There are many jobs and careers that could be better performed if you had the ability to speak before groups, and a confident speaking manor will come across as a major plus in job interviews.

A foreign language. Bi-lingual—we’re hearing that word more all the time, and with good reason! Interaction with foreign entities is becoming more common in an increasing number of industries. One of the best ways to make that trend your friend is to learn a major foreign language. Almost any career you have can rise to almost exotic status by adding a bi-lingual dimension to your quiver of skills. Start by taking a course at local college, or one of the many online programs available. Connect with native speakers of the language so that you can sharpen conversation skills. This may be a long term process, but the more fluid you are at speaking any language, the more doors you’ll be opening for your future.

Web design. It’s not necessary to learn how to design a website from the ground up, but the more you learn about this increasingly valuable skill, the greater your value to a current or future employer. Most businesses have websites today—they’ve become an important part of marketing. If you can write web code and make site modifications, the business can improve it’s site and increase sales without having to pay for outside services. Again, local college courses are a good way to start.

Writing skills. How many times do you hear about communication skills? This of course includes speaking ability and phone skills, but is increasingly centered on writing. Email is driving this. Writing courses can help in this area, but should be focused on writing short, cohesive letters typical to emails and business letters. The abbreviated prose that’s common in text messages won’t cut it.

Sales skills. Like public speaking, many people have a phobia about sales. The “I’m not a sales person” defense flies in the face of the fact that businesses of all stripes need to generate sales, and at a minimum, developing some sales skills can improve your work performance and your value to your employer especially if you have regular customer contact. Sales departments always need support and troubleshooters, and you’ll be better able to do this if you have some basic understanding of what sales involves, and can do your part to in the process. Get some good books on sales, and try to work with established sales people to see what it is they do that works. The closer you get to it the less intimidating it is.

These skills can be acquired on a part time basis; in some cases your employer may pay part or all of the cost of a course if the new skill is relevant to your job. It isn’t always necessary to become an expert in a skill; sometimes all that’s needed is familiarity. This is especially true if you’re applying for a new job; the fact that you have at least some understanding of a certain skill may put you ahead of other candidates who have more experience or educational credentials. It’s well worth giving up some evening or weekend TV time for!

By Kevin M

In 10 Ways To Survive in a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Last week we took a closer look at Strategy #1, now we’ll outline Strategy #2:

2. Move outside your comfort zone. Network outside your career orbit; you never know where the next opportunity may come from, or who might assist you in getting there. Pigeonholing yourself into a single job or industry may prove to be a strategic miscalculation in the future.

Most of us have invested a considerable amount of time and energy developing a network of contacts within our respective careers or industries, and in the last article in this series we discussed ways to expand the number of contacts you have, to go wide with many contacts, rather than deep with a few.

Obviously the more contacts you have the better positioned you are in the event of a job loss. However, during difficult times, it is equally important that you make contacts outside of those directly linked to your career. This is especially important if you are in an industry which is being especially hard hit in this economy, such as the many finance related businesses.

Where to Begin

As discussed in Strategy 1, maintain active contact with people in your immediate career circle, only here we’re saying don’t stop there. Start with existing contacts as a base, and then work outward from there.

Network in fields which are loosely related to your career or industry. I say loosely because if your industry is in trouble, it’s likely that nearly all other businesses substantially connected with it will also have fallen on hard times. If you work for a car manufacturer you’ll probably find little salvation in attempting to find work at your company’s parts suppliers. However for all of the same reasons new cars aren’t selling, opportunities may be steady at companies involved in auto repair work. People who can’t afford to buy new cars will likely spend more keeping their current vehicles running. That’s one single example, but there are similar relationships in virtually every industry.

Even though the economy is in poor shape, people still have to live, and in order to do that, they need to buy things. Even if what they’re buying isn’t what your current employer is selling, rest assured they’re buying something else from someone. The job then, is to determine what it is they’re buying and where—and that should yield some career prospects.

Consider networking in businesses or career fields that interest you. Many people have a desire to do a certain type of work, but avoid it because the shift from where they are into the new career will require too big of a hit financially. The reality of the current economy is that many of the recently unemployed are landing in lower paying positions just because “it pays the bills”. If you’re income will drop no matter what you do, can you pay the bills working at a career you actually like? If you truly enjoy the work you do, not only will working become more pleasurable, but there’s a real possibility that you will flourish and grow in the new field, and ultimately generate an income that’s higher than what you’ve known in the past.

Finally, take a chance on some scattershot networking in totally unrelated fields. Network with people in careers and businesses that you’ve never entertained working in. Most of us tend to keep our networking efforts centered in areas that we know—that’s our comfort zone. But it’s important to realize that opportunity can come from any direction, and the more people (in more businesses) that you know, the better the chance of stumbling upon an unexpected opportunity.

Networking Outside Your Comfort Zone

So how do you go about networking outside of your career field, where you may have little knowledge and few contacts?

For starters, the internet has made networking easier than ever and provides a networking opportunity in virtually any career or business of your choosing. It would be worth your efforts to find some career/professional networks in fields which members are reasonably likely to be in a position to be aware of job openings that might require your skills. Being active in a network unrelated to your field will give you the advantage of being the only person in the group with that skill set—which is exactly where you want to be.

There are thousands of blogs and forums representing different industries, and certainly there are a large number who would welcome even an outsider.

Join local network groups, maybe even general business networks, close to home. Face to face networking can be even more effective than joining web groups. Look to meet people and groups and be prepared to tell them your story and what you’re looking for. Just remember that networking works both ways, and be sure to offer support and relevant leads to others.

So why do this? If you’re an accountant and you mostly network with other accountants, what chance will there be of finding an open position that others within the same network haven’t already applied for? Conversely, if you networked with a group of IT professionals, someone in the group might know of a job opening for a good accountant from time to time. If you’ve been successful in management or marketing in a financial concern, could you bring your skills into a completely different industry? Now is the time to try. Make sure to be open and available to keep abreast of what’s happening.

Get to know people you come in contact with. In our everyday lives we come across people who work in dozens of occupations—use this to your advantage. Slow down a bit, listen to their story, and tell them what you’re looking for. Swap emails and exchange more substantive information, even resumes. Every one knows people, and may be aware of someone who’s looking for a person just like you to fill a job.

No matter where you choose to network, always make sure others know why your there—to look for opportunities—which is the same reason everyone else is.

Business Owners

For business owners, moving outside of your comfort zone is even more critical. A downturn in the economy is the perfect time to get connected with sources outside your industry, not so much for possible employment, but mainly for new lines of business.

In many businesses, it may be necessary to face the reality that certain products or services may not recover with the economy. Technology and globalization are taking a toll in different areas, and any product or service you offer—or even your entire business—could be at risk.

Just as with job hunters, you’ll need to go beyond the familiar and look to expand contacts beyond your industry. It’s all about the search for niches, something most business owners are familiar with even during more robust times.

Look for additional product lines that compliment the ones you now carry. Pay attention to the trends (another outstanding benefit of networking) to look for entirely new product lines to create new revenue streams. Gravitate toward products and services you might like to have provided in the past, but were too busy to take on when business was booming.

For many businesses right now, the goal may be not only to survive but also to preposition your business for the next wave. Now is the perfect time to do this, and networking outside your comfort zone is an excellent way to get started.

By Kevin M

In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Now we’ll begin taking a look at each in greater detail. Strategy #1:

1. Assume perpetual economic instability. You can’t go wrong with this. If that assumption turns out to be wrong I’m sure you’ll have no trouble adjusting! Otherwise, actively network your business or your job skills continuously. You can never know when the next job eliminated might be yours. Be ready.

Network Your Career

Even if your job isn’t in jeopardy, resist complacency. This will serve two purposes; first it will drive you to perform at a higher level, and second it will keep you on an active hunt for your next gig.

As an employee, it’s more important than ever to get- or stay-connected. It’s OK to keep connections with coworkers, former coworkers and former employers, but you will need to move beyond the familiar. Part of the problem with familiar connections is that they often have the same circle of contacts you do, which is of little benefit.

In a strong economy, a few deep connections may be all you need to remain employed especially if your field of expertise is in shortage. However in a weak economy where jobs are being eliminated, it’s probably a better idea to expand the number of connections you have. Think wide, rather than deep.

It is advisable to join some network groups, including some on the internet. But don’t stop there. Look for some network groups in your area, preferably those who meet periodically. There’s no substitute for face to face contact. As people within the networking group are hired or promoted, there’s a chance you may be brought along.

As mentioned above, write articles for publications and websites potential employers might frequent. It will establish you as an expert and could lead to calls from prospective employers inquiring as to your availability. This is a way of getting in front of employers without sending a resume. If a company does call in regard to potential employment, set up a lunch meeting, even if you aren’t immediately interested. This will create a valuable connection for a later date should it become necessary.

Avoid doing anything reckless, like posting your resume on job boards or registering with every recruiting agency that’s out there (unless of course you’re unemployed). Eventually that will get back to your employer, which may hasten the arrival of a pink slip. Any search you conduct should be targeted and limited. It may be best to restrict the search to use two or three established recruiters. Good recruiters often market “blind resumes” that list your qualifications but omit your name and recent employers. This is a viable way for you to inquire about positions anonymously, or at least until a potential employer expresses concrete interest in your qualifications. (We network with a limited number of recruiters in specialized fields who are prime agencies in this regard. Click here to participate by sending your resume.

Network Your Business

A CPA I worked with many years ago was fond of saying “I’m a salesman first, and a CPA second–anyone who is in business always needs to be a salesman first”. The economy was bad at the time, but he was taking on new clients while other accountants were losing them by the boatload.

One advantage of a bad economy is that as competitors close their doors, their customers are up for grabs. If you can hold long enough you’ll win by default, just by staying in business. But you will need to reach the people who are buying what you are selling in order to do that.

Get more aggressive with marketing, but do it in ways that won’t increase your advertising budget.

Expand your sales force. Unless you’re in a business where doing so is prohibited by law, offer a commission or bonus arrangement to clients, vendors, your employees and other contacts as compensation for sending you referrals. You can have hundreds of people on your list. Just as important, develop a strategy for reminding them of your referral arrangement. A weekly or monthly batch email is an excellent way to do this that is both easy and free. Bonus: a personal referral is always a warmer prospect than an ad call.

If you don’t have a website, get one, and if you do, there are various ways to improve the reach of your site that don’t cost any money. If you can, learn a bit about web promotion. It’s actually less complicated than you might think, and whatever you can do yourself will be less that you need to pay someone else.

A couple of good books on the subject include:  Getting Noticed on Google (Ben Norman), and Marketing in the New Media (Holly Berkley). Both are fast reads and easy for a novice to understand. Find out how your successful competitors are running their sites and then pattern (but don’t copy) what they’re doing. These books will show you how.

If you do need outside help, a lot people are out of work, including web designers, making it easier than ever to get expert help on the cheap. If you can’t afford to pay the fee, try to work out a barter exchange.

Write informative articles in your area of expertise and have them published in print media and on websites which potential clients are likely to frequent. Prospects are far more likely to read and respond to beneficial content than to ads, and writing articles will position you as an expert and cost you nothing but your own time.

The purpose of marketing is to get your message to as many prospects as possible, for the least money possible. Try placing ads in homeowners association newsletters–people do read those. Consider restaurant placemats; you have a captive audience in customers awaiting their food. Give talks, with question/answer sessions, at various organizations, including the local chamber of commerce, business and network groups, senior citizens clubs or anywhere likely prospects might be. Again, this will cost you nothing except your time, but remember–you’re in business and therefore you’re a salesman first!