Mike Michalowicz

President

Obsidian Launch

thetoiletpaperentrepreneur.com

MIKE MICHALOWICZ (pronounced mi-CAL-o-wits) started his first business at the age of 24, moving his young family to the only safe place he could afford – a retirement village. With no experience, no contacts and no savings he systematically bootstrapped a multi-million dollar business. Then he did it again. And again.

Mike is the president of a behavioral web optimization firm, Obsidian Launch; is the small business columnist for The Wall Street Journal; is a frequent television guest; is a keynote speaker on entrepreneurship; and is the author of cult classic book, The Toilet Paper Entrepreneur. He is currently writing his second book, to be released in 2012 by Portfolio, an imprint of the Penguin Group.

Despite the poor economy, all is not lost for businesses of all sizes; people still have to live—a process that involves spending. Even in a bad economy, the market still demands something that you can provide; the trick is to create openings within your business to satisfy the current needs of your customers. Collaboration with others and tightening bonds between the business and your market are necessary steps to navigate uncertainty. Consumer spending is necessary to bring us out of the recession and even though people may need your product or service; they just don’t have the cash to spend. Consumer borrowing doesn’t help either; the national debt is higher than it has ever been and doesn’t show any signs of coming down. Historically, America has weathered many an economic storm, but none quite as persistent as this one. After the highs of the 1990s, the Millennium decade saw signs of weakness emerging in the American economy. The gap between the rich and the poor was widening and there were problems with healthcare, social security and the manufacturing industries. Lax lending regulations meant people took on too much debt which sent the housing market spiraling out of control. Surfacing from the great recession, you may feel the need to hang onto what you’ve got, but as Beth Woods, Vice President of Business Owner Advocacy for MassMutual said on 2sbdigest.com, “This is a time when business owners need to re-examine what they’re doing in today’s economy while also preparing plans for tomorrow’s rebound.”  According to an article on gaebler.com, “Investing in marketing during a down economy is imperative if you want to make it through the tough times.” But, American consumer spending, which is responsible for more than 70 percent of America’s economy, is falling sharply resulting in a growth of the national debt and a weakened dollar. Regardless, for some entrepreneurs, this is the perfect time to start a new business. You too can create advantage out of adversity. To turn the economic downturn into an advantage, consider the following. Tighten up your processes. Tighten up your finances. Recognize that this is the perfect time to outsmart your competition. Watch for your own vulnerabilities. And lastly, stay close to your customers.