What a difference a year makes. Brick and mortar business fundamentals are back in vogue, and the dotcom boom is a bust. According to the Wall Street Journal, only 38 percent of Web retailers are profitable. Looking at the local San Diego e-biz scene, plenty of evidence suggest that this number is a bit optimistic. To survive the rough ride ahead, you need to carefully prepare and execute strategies that address short-term requirements while laying the foundation for future growth.
Markets are cyclical.
Put simply, one day you're up, the next day you're down. But relationships can last a lifetime, and in today's down cycle, your best bet for future profits is in establishing relationships with your customers now. While customers today are tightening purse strings, there will come a point in the future when they will spend again. Your investment in each customer relationship today will yield greater profits tomorrow. Loyalty translates to sales, and sales yield profits.