Invest in social networking and become 'recession proof'

The founder of a leading business site says that social networking will be a "critical factor" in the survival of small companies during the current economic downturn.

The founder of Ecademy, Penny Power, says that members of social business networks are using their online contacts to increase sales despite the credit crunch, and could even become 'recession proof'

Power advised small businesses in a recent interview that maintaining a low cost base that is entirely customer focused is the only way to survive the forthcoming recession and that the use of Collaborative Virtual Teams will enable businesses to continue to grow despite reports of a slowing economy.

“Members of social business networks are realising that once you have a great client, you need to nurture and expand that client by providing additional services and consulting through the Collaborative Teams in your network. In the current economic climate it is far easier to do that than try to find new clients."

“Businesses must ensure that they are communicating their expertise in as focused a way as possible. Niche will win and the more niche a business skill is, the more identifiable and attractive it is. Everyone now is found through Google and business people must manage their brand on Google and ensure they are optimised. A good Business Social Network that is ‘open’ to Google will achieve this for them immediately and cost effectively.”

“Ultimately, to survive the recession, businesses need to be able to put their head on their pillow at night as say to themselves, ‘am I more visible tonight than I was this morning’, and “have I gained an advocate today that can refer business to me and I, in turn, can help them”, adds Power.

Further Resources

We have a variety of articles on Bytestart which will help small business owners make the most of networking (both online and offline):

In an article we published earlier this year, Martin Davies, Director of NRG Business Networks, believes that successful networking could hold the key to survival for new businesses. In this article, he gives Bytestart readers his tips on how to implement an effective strategy.

Here are some more of our most popular networking articles:

• Essential small business networking groups

• Online ways to publicise your business website

• Networking - how to make your ideas happen