| The media reports are full of bad news about the | | | | provider. In the Depression, they broadened their |
| economy on a global, national, and even household | | | | market so that they not only made specialty railings, |
| level. Predictions abound on if a worse economic | | | | grates and stairways; they also made plain metal siding |
| downturn like the Great Depression will begin, and if it | | | | for delivery trucks and security doors. |
| does, when it will start and how long it will last. Turn off | | | | Some entrepreneurs saw opportunities that others |
| the news and think about this: Consumers do not stop | | | | didn't see during the Depression, and acted upon them. |
| spending in a downturn; they just become more | | | | - Warren Buffet's father, Howard, noticed that many |
| selective on how to spend their money. They look for | | | | brokerages had closed or were not taking new |
| what appears to be a better deal, whether it is better | | | | customers, yet there were still some people who |
| pricing, better customer service, a special add-on, | | | | wanted to invest in stocks, so he opened a brokerage. |
| easier sales process, and so on. Even during the Great | | | | - Walt Disney knew people still wanted entertainment, |
| Depression, that began in late 1929, consumers were | | | | and provided it at a low cost through animated |
| still spending. Companies that survived, and even | | | | cartoons. |
| thrived, got creative and took action. Here are just a | | | | - Ever hear of Monopoly? The rise of this game |
| few examples from that time period: | | | | occurred as another form of cheap entertainment. A |
| - Kellogg and Post were once pretty close | | | | small investment for the Monopoly game became a |
| competitors until the Great Depression. Kellogg came | | | | way to see hope in the future, and as players |
| out swinging, with heavy marketing; Post took the | | | | developed their money making skills, they could |
| no-growth strategy -- what appeared to be the safe | | | | pretend they were real estate barons. |
| position. Kellogg overtook Post, and Post has never | | | | There have been severe recessions since the Great |
| caught up. | | | | Depression ended, and during each one, new and |
| - Chevrolet overtook Ford in much the same way and | | | | existing businesses were built to great levels of |
| maintained the lead for many years. | | | | success. Toys R Us and Domino's Pizza are |
| - Proctor and Gamble began a huge branding | | | | examples of companies that started in economic |
| campaign by being the first company to sponsor radio | | | | downturns. They thrived by using new marketing |
| soap operas, which was a significant form of | | | | models. Toys R Us used a new shopping model for |
| entertainment and relaxation for listeners. Their name | | | | toy stores, and Domino's used a new marketing |
| became a household word and remains so today. | | | | concept for pizzas - that your pizza would be |
| - Bixler Jewelers, credited as the oldest jeweler in | | | | delivered on time or it was free. |
| America, saw a drop in customer traffic and decided | | | | A very short list of some other companies that started |
| to open a free lending library in the store. This | | | | business during economic downturns include: Wrigley |
| increased customer traffic, helped to maintain | | | | Gum, UPS, NewEgg, Super 8 Motel, Microsoft, |
| customer loyalty, and little by little, increased their sales. | | | | Symantec, Nantucket Juice, Zippo Lighters and Hewlett |
| - A.E. Schmidt was a billiard table manufacturer when | | | | Packard. I imagine you have heard of most, if not all, of |
| the Depression hit. They diversified and sold janitorial | | | | these companies! What are the main keys to success |
| supplies to restaurants. They also sought new markets | | | | in these examples? 1. GETTING CREATIVE with |
| for their billiard tables, and approached the US | | | | marketing, business models, product diversification and |
| government about the need to provide inexpensive | | | | positioning, and, 2. SEEKING the opportunities that |
| and positive activities for those in government work | | | | others do not see, and, 3. TAKING ACTION, because |
| camps during the long, boring evenings when they | | | | of, and in spite of, the economic news. Turn off the |
| weren't working -- and billiards became one of the top | | | | news, get out of the fear mode, and work on these |
| activities at those camps. | | | | three keys to find your success during any economic |
| - Cornell Iron Works was a specialty ironworks | | | | condition. |