the reflexions insider

This recession is different for a variety of reasons. It’s already the deepest recession since the 1980’s and it will probably be the deepest since the 1930’s. Charts like these are enough to make anyone feel like we’re collectively driving off an economic cliff.

But this time it’s different for other reasons too, and I think they’re the reasons why small and mid-size companies are far better equipped to deal with the challenges we’re facing than ever before.

The web as a platform for business applications has become ubiquitous. It has enabled companies to cut costs and increase productivity with tools like hosted business applications and collaboration tools. Much of the underlying “plumbing” of the web, such as open source server platforms and next-generation cloud platforms, are more accessible and offer an attractive option for managers looking to slash budgets.

Here are some of the strategies we’ve been advising our clients to consider:

1. Reduce software licensing costs by switching to open source platforms including Linux-based servers and database systems like MySQL and PostGREsql, or cut costs while improving scalability with cloud hosting solutions like Amazon Web Services, Mosso, and 10gen. If deployed well, cloud platforms can deliver a better value than in-house or managed servers because they provide more flexible on-demand scalability, meaning you’re not paying for capacity you’re not using.
2. Replace costly proprietary telephony and PBX systems with alternatives like Asterisk or hosted pay-per-seat VoIP solutions.
3. Switch from pre-paid licensed business software like Microsoft Office to hosted platforms like Google Docs.
4. Improve employee communication and productivity with collaboration tools like Yammer (the “Twitter for business”) and Drop.io for real-time collaboration and file sharing (both are free).
5. Engage with customers more effectively with social platforms like Disqus and Twitter. Conversational media platforms have provided some of the biggest opportunities for building brands and deploying low-cost viral marketing and publicity campaigns (Skittles, anyone?).
6. Take advantage of a significant drop in advertising costs for pay-per-click platforms like Google Adwords. Fewer competitors means lower bids and more clicks per dollar for the most desirable keywords. We’ve seen upwards of a 30% reduction in the cost per click and cost per conversion for both B2C and B2B search engine advertising markets.

The current environment is both a significant challenge and an enormous opportunity. Successful companies will incorporate these kinds of tools within their overall strategy for survival and growth. What strategy is your company implementing to take advantage of the current economic climate? Feel free to comment or contact us and let us know.

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