How to grow and promote a business in a difficult economy

Contrary to popular belief, difficult economies and recessions may be an ideal time for businesses to launch products and service. The reason for this, according to a Wall Street Journal article by a lecturer at Harvard Business School, is because most companies pull back to protect themselves. The company that continues innovation will emerge as a leader and possibly have higher results than innovative in a "competitive boom."

However, businesses are warned to not fall for every business opportunity, and proper research must be done to ensure the business development has more chance to succeed than fail - a difficult step for any business in any economy.

The following steps could take a business from initial idea through completion and, ideally, end successes:

1. The WSJ suggests businesses explore possible additions and ventures that consumers will find attractive in a struggling economy. This could include "affordable indulgence," like offering the most product offering for the least money. Businesses may also consider unemployment rates and customers' typical difficulty paying for things that are traditionally expensive, such as travel, large purchases, and daily necessities like food and clothing.

Companies that grew during the recession: Airlines touting low costs, such as Southwest and JetBlue; stores that carry required items, like Home Depot and Trader Joe's; and repair shops that allowed people to refrain from buying new because a product no longer worked.

2. A key for business owners to deliver successful, unique business innovations may be in using "underutilized resources" available at lower costs than usual, which may include more out-of-work people in a certain industry.

How to utilize these resources: The article recommends comparing a difficult economy to the collapse of the initial internet bubble, which put thousands of web developers and workers out of work. Much of today's most popular internet activities and developments - such as social media platforms, blogs and modern internet capabilities - were because unemployed internet workers innovated in difficult times rather than remain stagnant.

3. Although it may seem financially difficult to create a new business product or goal during economic hardship, the WSJ recommends business owners refrain from shedding employees and assets to conserve funds unless totally necessary. Not only will the business lose resources that likely make it a stronger entity, the loss of assets may make the business as a whole less valuable.

How to survive and make profit with a new business product or idea: Explore ways to market toward a current customer base and increase customer retention and reach out to new customers who might find the innovative business model and product beneficial. The WSJ also recommends getting attention by offering low fees or rates with a higher initial price, which may attract customers hoping to save money in the long run.