In today’s economy when most businesses are hurting in one way or other, the buyers leverage is increased substantially. These days whether I am buying something for myself personally or making a business purchase I make it a point to negotiate the price of the product/service as much as possible. Some may look at this as taking advantage of the situation but it really is a cyclical phenomena. During boom times, a seller can give little or no discount on a product/service as business is good and there is little need to reduce margins unless there is another angle to the strategy. The reverse is true during slower times. Sellers have rising inventory levels and deal flow is substantially reduced. Buyers during this period become increasingly cautious about their purchases and tend to indulge in a more comparison shopping before purchasing.

As a business owner we need to be aware of this change, whether as a buyer or seller. Discussed below are some strategies that have been of some assistance to me:

As a Buyer:

1. Do research on the options available to you. This will not only give you valuable information regarding different selling points, it will also help highlight detailed differences between various products/services being offered. Greater information will help you negotiate a lot more effectively.

2. Make longer term agreements with vendors for services such as office rentals, website hosting and other recurring expenses. This allows you to lock in greater level of discounts.

3. Get better credit terms for your larger purchases. Sellers understand that buyers are cash strapped and if they are able to lock them in they can re-adjust agreements when things become better.

4. Do not make impulsive or rash purchasing decisions. If you think that there is a chance that the seller will back down on the price or will agree to your terms, take the time required to sit out and evaluate other options.

As a Seller:

1. Become flexible as soon as possible. I went into a store yesterday and they had a big sign that said ‘fixed prices’. The seller refused to budge from set price points even on a larger purchase. He lost potential business and his stubbornness prompted me to write this  blog. We need to think long term at this point in time and capture the market from sellers who remain fixed in their ways.

2. Increase advertisement spending. As a buyer of advertising space you have  more purchasing power at this point in time. Use this to your advantage to promote your business in times when your competitors may be thinking of cutting back on this expense. Be creative in your promotions and get your customers talking.

3. Do your research on the competition. How are they adapting to the situation? Are they cutting prices? Are they promoting certain products more than others? Figure out how they are reacting as soon as possible to enable you to make tactical changes to your strategy.

4. Listen to your customer even more. This is an essential aspect whether one is going through good times or bad. However, during difficult times one needs to figure out how the downturn is effecting the customer’s business. Where are they hurting? How can your products/services alleviate some of that pain.

As a small business owners we need to remain adaptable and flexible. We need to know what to cut back on and on which matter to stand firm. Don’t make changes to your strategy just because everyone else is doing it, have a plan. Stretch your dollar to the maximum by leveraging your position and the condition of the economy to your advantage.

What are some of the things you are doing as an entrepreneur during these times? What strategies are you using to get the right price and deals from your vendors? How are you dealing with customers who are repeatedly asking for steep discounts on your products/services?

Everyone has some dreams, goals and ambitions about what they want to achieve in life. However, in most cases those dreams remain just dreams and some just accept life for what it is. The difference between the two states is resistance. It is the resistance to put yourself out there to achieve your goals and aspirations. It is fear that we may fail and end up disappointing ourself further that holds us back. In such cases, we are unable to overcome the level of resistance we face and, we give in. We settle for something that is less, simpler, easier and which does not take as much effort. Unfortunately, that is how the story goes for a great many of us in this world. Our dreams to be entrepreneurs, doctors, lawyers, leaders, change agents or anything else that we had aspired to be, are left behind as we give into the resistance that we face, thus settling for much less.

In life, the things we feel are most important to fill that certain void in all of us, are the ones that are associated with the greatest amount of resistance. It only seems fair that if we really want something in life we have to give it everything we have. If it were achievable with little or no effort, would be appreciated as much? I highly doubt it. Overcoming resistance requires being prepared, commitment and most importantly, a deep seated passion for what you are doing. On the surface these words sound cliched. Who doesn’t know that they have to be prepared, committed and passionate? Therein lies the mystery and dilemma. With everything at our disposal, we still never make the effort to take that first step. We stand on on the edge and let fear consume us. We become paralyzed with the thought of what could be….

The fact of the matter is that each and everyone of us faces resistance on a daily basis. Some of us however make the decision to push against it with all that we have. These people don’t do it because they have to, they do it because they cannot imagine doing anything else. Take for example an entrepreneur sitting on the sidelines waiting for the perfect opportunity…. knowing very well deep down inside that there is no perfect opportunity. We deceive ourselves so that we can continue waiting on the edge as life passes us by. Make a resolution today that you are going to take a step towards a goal that will make a marked difference in your life. It could be as small as writing it down on a piece of paper or as large as leaving your job and following what you are most passionate about doing. Either way, you have to make a move for any sort of momentum to be formed.

What are some of the things that hold you back from achieving your goals in life? What was the biggest challenge you overcame to make a difference in your life? What was the source of inspiration that made you follow your dreams? I would really like to hear your stories.

On my journey as a serial entrepreneur I have had to take a leap of faith, many a time, not knowing how things would shape out. I believe there is a difference between taking a decision based on incomplete information and just hoping for the best and a leap of faith. The difference is subtle on the surface, but when truly identified, shows the difference in situations quite clearly. For example in a business partnership, you could meet a potential partner at a cocktail session, and decide then and there to start a new business together, since it seems that both of you have complementary skill sets and it also feels right. I believe that is not a leap of faith, rather, it is a gamble on both parts. A leap of faith is when two would-be partners get to know each other, identify ways to work together, identify correct business opportunities and then make a decision to go forward and start something together. The difference between these two options is “knowledge”.

A counter argument could be that given that both individuals know each other well, how is that a leap of faith? The truth of the matter is that we usually know very little about each other initially. It takes time and effort to actually get to know an individual. However, the relationship changes completely when both individuals have something vested in the relationship, be it business, marriage or religion. In truth taking that initial step or commitment into the unknown, is as scary as jumping into a situation with a complete stranger.The difference however between these situations is that when we make a true leap of faith, we do it after studying and judging the situation at hand, rather than just taking a random shot.

When I started my initial business I also had an offer to go into the corporate world at that time. After analyzing the situation, I chose to venture out on my own and I am extremely happy with that choice. It was not an easy decision, even though on the surface it seemed a profitable business to go into. A leap of faith I believe represents a decision based on much more than just something done on the spur of the moment. It requires making a decision based on research,logic and a gut feel which is truly exciting. The next time someone asks you to take a leap of faith and do something, think about the situation at hand….is it really a leap of faith or just another shot in the dark.

I would really like to hear what you think about taking a leap of faith? Is it something that one just does, or does it actually require a lot of thought? Do you think too much thought restrains you from actually making that leap? Look forward to your comments and suggestions.

Image by Usman Sheikh

I got a chance to take some time off last weekend. For a couple of days I literally shut my phone off, did not power the laptop and was not checking my email every 5 minutes. At first it was a bit strange. The first day I was most uncomfortable. I would suddenly think of something related to work and get tempted to put my email service back on. However, after a short while, I started to enjoy my time a lot more, and went with the flow of living in the moment. This trip helped me realize how I am always planning for tomorrow, next week, next month and even next year, and often forget to actually enjoy today….the moment! I have read “The Present”, the book talks about the importance of “today”, and endeavor to act upon it, it is however a lot more challenging than it appears.

Although it is true that the lines between work and play are very blurred for most entrepreneurs, the fact of the matter is that I enjoy my work too much and truly enjoy doing it everyday. Most things revolve around it and the best part is I have am very comfortable with that. However, balance is important to keep certain things in life in perspective. I quoted the “Jar Story” a while back on this blog, it is a really good reminder that even though we may be thoroughly enjoying what we do, we should not let it consume us to the extent that we forget about the bigger blocks in our life. Those blocks include our family, health and friends. Without these critical factors in place, it is difficult to achieve an acceptable level of satisfaction.

Mini vacations is something that Tim Ferris is a great advocate of in his book The 4 Hour Work Week. During this trip I really began to see the importance of these mini holidays. Even if it is for a couple of days, the ability to detach ourselves from our very busy lives can provide enormous perspective. I will be planning many such expeditions for the rest of the year! I would really like to hear from readers about places they recommend visiting for around a week. Look forward to hearing your suggestions.

Starting a new business, launching a new product/service or forging a new partnership, needs to have a plan. The plan helps put your thoughts into perspective and brings them to life. It provides a framework to operate from, and achieve goals that have been set. Without a plan, it is more likely than not that things are rushed into, more often than not that things will fail, and all this because there are no guidelines about what to expect or where to go next. We are lost, things change rapidly in real time and a frame of reference has not been created to refer to.

Much has been written about how business plans once created are just left on the shelf, because conditions change rapidly when execution begins. This statement is true, I say this from several personal experiences when well constructed plans failed to take into account a couple of factors, which in turn cause it to breakdown. The fact of the matter is, that we cannot plan for every scenario. There will always be an element of risk in starting a new business, launching a new product/service or forging a new partnership. The ‘plan’ helps minimize the risk associated with this by helping draft contingencies and ways to react and handle them.

A plan is the basis of good execution. It helps develop a foundation on which to further expand ideas. It provides a direction to follow, when things do not go according to plan. It is a safety net and a frame of reference that will serve you well in all aspects of business. The saying “If you fail to plan, you can plan to fail,” is valid and should be a line for entrepreneurs to live by.

What are the biggest challenges you face while planning? Do you think we can succeed without a plan?

Today has been one of those really long days where your ‘to do’ list seems endless, and at the start of the day, the thought of getting all that work done is frankly, quite intimidating. What has helped in this scenario is that no matter how long my to do list is, I prioritize three things that need to be completed before the day is done. Not only does this provide psychological comfort, one can still enjoy a feeling of satisfaction at the end of the day.

When you look at life from a similar perspective, it is like a very long day. There are all these tasks you want to accomplish, feelings and emotions vary dramatically during the course of the day, and one is always looking for that often elusive level of balance which brings comfort and happiness. If we were to get overwhelmed right from the start, we would end up getting very little done. We need to pace ourselves, not only to avoid burnout, but to also enjoy our triumphs and victories.

Keeping our eyes on the larger picture, we give ourselves the opportunity to actually enjoy the journey. Days like today then fall into perspective, and one can look forward to the next day and all that it may bring.