This according to a recent New York Times article, which points out most top analysts haven’t changed their fiscal predictions for the second half of 2011 at all, despite the recent domino effect that ensued in the wake of an 11th hour debt-ceiling deal neither party truly believed in.

And yet this flies in direct contrast to almost every Fortune 500 forecast out there, including those of the biggest firms in the country’s corporate sector, which have every incentive to maintain an attitude of cautious optimism.

So the question becomes: What are these analysts seeing that others aren’t?

Well, for starters, a lot of analysts view September as a major back-t0-business-as-usual period, during which companies recover from the post-summer jetlag and ramp up their efforts to finish the year on a high note.

In addition, the current forecast for third-quarter fiscal growth has only dropped off slightly (from 17% to 15.6%) despite the extreme roller coaster ride stock prices have experienced for the past month or so.

The projected forecasts for 4th quarter growth have dropped off even less (only .6%, according to an aggregate of expert resources), which means hope still springs eternal in a big-picture sense.

And, of course, there’s the notion that if the economy continues to experience positive-albeit-stagnant growth, there’s absolutely no chance of a double-dip recession, at least not for another three fiscal quarters, which would take us well into 2012 (at the very least).

Still, major brokerages including J.P. Morgan and Goldman Sachs have downgraded their predictions for 3rd and 4th quarter growth, perhaps believing a safe estimate is better than a sorry one, especially if they can exceed investors’ expectation and restore a sense of optimism in the months to come.

Finally, it should be mentioned that most analysts take a reactive, rather than proactive, approach to forecasting. That is to say, they generally wait to see what major corporations are speculating in terms of future growth and adjust their forecasts accordingly. This is based on the philosophy that the market, not the consumer, regulates most major fluxes.

It also means if major corporations continue to lower their expectations in response to more bad news in the final quarter of 2011, these analysts may not remain as cautiously optimistic as they have been thus far.

Source: “On Wall St., a Big Split on Outlook,” by Nelson Schwartz, New York Times, 8/21/11.

In retrospect, it’s easy to see how market deregulation and the smoke-and-mirrors derivative market could only lead to financial ruin.

All of which is why right now, given the clear and present danger the country’s financial situation is in, we may be staring down the barrel of yet another recession.

Consider these significant signs:

• The debt ceiling deal was stalled until the 11th hour, at which point both parties agreed to a deal neither completely believed was beneficial for the country.
• The ever-widening divide between political parties has never been more apparent or substantial. Even minor bills wind up in limbo for months, as both sides of the aisle vote strictly based upon party lines. It feels more like the Jets and the Sharks than Washington politics.
• As a result of that divide, the country’s credit rating has dropped below AAA for the first time in history. Standard & Poor’s, the lone institution that downgraded the U.S., provided this explanation: “the gulf between the political parties has reduced our confidence in the government’s ability to manage its finances.”
• Like falling dominoes, now Fannie Mae, Freddie Mac and all U.S. backed debt has been downgraded by Standard & Poor’s as well.
• Meanwhile, gas prices are rising to unprecedented rates, unemployment continues to linger around 9%, the housing market still hasn’t recovered from the first recession, and 82% of Americans now disapprove of the job the U.S. government is doing.

Could this crisis of leadership send us spiraling straight into a second recession? All of the elements for such a storm are in place.

The question is: Can the government learn from past mistakes and pick up the pieces before it’s too late?

The study, which the Wall Street Journal conducted in conjunction with NBC News, found the bulk of pessimism was due to rising gas and food prices, while a stunning 64% claimed President Obama was either “not responsible” for the current economic mess or only “somewhat responsible.”

Nearly 70% of Americans claimed they’d been significantly effected by the increase in gas prices. Meanwhile, more than a third of respondents said their economic situation had gotten worse in the last year, while only 20% claimed their situation had actually improved.

Nearly 40% of Americans take the conservative view that cutting federal spending will help the economy, while 31% believe federal spending is actually helping the economy long-term.

Finally, 46% believe there should be less government interference in business – a belief that reflects the mass deregulation of the aughts that many feel contributed to the recession in the first place.

Source: “$4-a-gallon gasoline contributed to Growing Pessimism on Economy,” by Neil King, Wall Street Journal, 6/6/11.

Sales guru Zig Ziglar once said, “Expect the best. Prepare for the worst. Capitalize on what comes.”

That’s especially true in today’s highly unpredictable business world.
Some analysts believe the economy’s poised for a comeback. Others believe we’re on the brink of another recession. Regardless of what lies ahead, these four strategies are a great way for sales pros to “expect the best, prepare for the worst and capitalize on what comes”:

1. Accentuate the positive. It seems like every prospect has a concern when it comes to the economy. Salespeople can take advantage of that by keeping an eye out for every article, news clip or blog post that shines a positive light on their industry or region. Including links to these articles in emails, e-newsletters and/or company blog posts is a tremendous way to keep existing buyers and top prospects optimistic about what’s to come.
   And it also provides sales pros with valuable selling points that could come in handy when responding to objections.
2. Seek out testimonials. A lot of today’s customers are quick to tell salespeople about all the reasons they can’t do business. Optimistic salespeople respond to that by providing testimonials from loyal customers that demonstrate why now’s the best time to do business. During difficult economic times, nothing creates a sense of urgency more than when prospects feel like top competitors are profiting from a product or service they aren’t using.
3. Adjust key selling points. As prospects’ priorities change, so do the selling points they respond to most. It may be helpful to solicit feedback from prospects (as well as loyal buyers) about what’s changing in the industry and how it’s impacted the way they do business. Has the buying process changed? Have their needs changed? What’s the one thing they value most that they can’t get from their current supplier? What are their goals in the year ahead? How have those goals changed as a result of current market conditions? Knowing the answers to these questions puts salespeople in a much better position to develop value propositions that speak to what prospects are up against now, while downplaying selling points that no longer wield the same power.
4. Become a solution provider. Today’s prospects need a salesperson who can translate value in terms of how a product or service can help them overcome their biggest challenges. Whenever possible, quantify the type of return prospects can expect, as well as how much revenue they stand to lose by putting off a buying decision indefinitely. Use metrics to demonstrate why not agreeing to do business would actually prove riskier than moving forward with the sale. Differentiate your offer by proving that while other salespeople may offer valuable products and services, you offer solutions that can help the prospect’s business succeed … not only today, but also well into the future.

Based in part on “5 Ways to Capitalize on the Economic Recovery,” by Mike Brooks, Sales Gravy.

Maybe not. Understandably, with headlines like these, everyone from line workers to the executive suite may be starting to get a bit nervous. And that feeling gets reinforced every time they pull up to the pump. Sky-high gas prices could plunge us back into an economic crisis, couldn’t they?

Here’s another angle: Don’t believe the hype.

There’s a compelling case recently outlined in the New York Times that the spike we’re seeing in fuel prices won’t drive us back into the depths of recession.

What’s changed

We all remember the number $4-a-gallon gasoline did on us in the months before this recession began.

But that was then and this is now. Now’s a good time to remind employees at all levels what’s transpired since then:

• Reason #1: We need it less. The U.S., like many other countries, is now significantly less dependent on fuel than it was even a few years back. In fact, oil consumption has dropped more than 5% since 2005.
• Reason #2: We learned from last time. Many people have made moves as a result of the last round of pain at the pump. For example, sales of fuel-efficient vehicles are way up; many folks put their SUVs out to pasture.
• Reason #3: We react faster. Fuel-dependent industries, like airlines and trucking, are passing their costs on immediately, rather than waiting for their profits to take a dive.

A reality check like this right about now could keep people from unnecessarily slamming on the brakes in their personal spending (or killing those plans for summer road trips) — actions which, if enough people take them, could impact our recovery.

• a lot of the language included in the bill was so dense that companies which didn’t have an entire legal team at their disposal weren’t in a position to fully understand, or take advantage of, most of its provisions, and
• several of the programs implemented as a result of the act weren’t put in place quickly enough to keep small businesses from bleeding substantial revenue (or going under altogether).

Despite that, there are three areas where most small business owners agree the act has had a positive impact:

1. Elimination of excess fees on federal loans: With so many banks refusing to lend to small businesses, the stimulus provided a huge break by streamlining the process, and waiving all excess fees on small business loans, so companies didn’t have to worry about digging themselves deeper into debt in order to secure loans (the Small Business Association approved $22 billion in loans between Feb. of 2009 and Aug. of 2010).
2. Tax breaks: The stimulus provided huge tax relief to small businesses, helping them collectively save millions of dollars over the past two years. In many cases, that money was reinvested in the company, creating additional revenue.
3. Percentage of government contracts awarded to small businesses: Perhaps the most valuable provision was a mandate that at least 23% of annual government contracts be given to small business owners. Last year, a third of all government contracts were awarded to small companies.

Source: “Small Businesses Weigh Recovery Act,” by Emily Maltby, Wall Street Journal, 2/24/11.

Productivity dips may be the least of your problems. Now your company could end up with a major legal nightmare when co-workers hook up.

Check out what employers are up against now, and what you can do to keep costly headaches to a minimum.

Let’s start with the small silver lining: The need for job security in a down economy has fewer people willing to flout anti-fraternization policies. The number of people saying they’ve been involved in an office romance has plummeted in the past few years.

But the cases that still exist may give you more costly troubles than ever before.

A new kind of love triangle: The couple and the co-worker who cries harassment

Legal trend watchers say there’s been a recent spike in hostile work environment sexual harassment claims.

The real kicker: Often, these suits are brought by people who aren’t even part of the office romance! Instead, they’re co-workers who claim others received special treatment, better assignments, more leniency, etc.,  because of whom they were romantically linked with.

The good news? Third-party claims like these are tough to prove.

The bad news? They’re easy as pie to launch. And many employees hoping to protect their own positions in tight times are jumping to raise these types of grievances.

So what’s a cost-conscious company to do? Start by spelling out what’s OK and what’s not as far as inter-office dating. It’s shocking how few workplaces have done so: A mere 13% of your peers have written policies addressing such matters.

True, since the year 2000, there have only been 18 month-over-month jumps that large. That fact has some economic gurus proclaiming that a full recovery is already underway.

But if others in your organization are tempted to believe that idea (or even make some strategic moves as if recovery were a done deal) you probably want to offer this reality check. May be a bit premature. Here’s why.

150K down, 1.35 million to go … for starters!

There’s no denying adding 151,000 jobs is a good thing. And no one’s going to argue those numbers are mush preferred to the alternative we have been seeing, with month after month of jobs being lost.

Remind others, though, that the October unemployment rate held steady at 9.6%.

And to even approach the employment picture we enjoyed before the recession began, experts say the average number of new jobs we’d have to add per year from now until 2016 would be about 1.4 million per year. So there’s still quite a ways to go.

Here’s another idea to wrap your head around: Some economists believe we’ll never reach those pre-recession employment levels. That means we just may have to adjust our view of what recovery looks like. And there may come a point when companies will have to start hiring and spending again even before they’re 100% confident we’ve “recovered.”

It’s an issue worth raising with the other top execs in your company. And this new job report is the perfect opportunity to open that conversation.

1. They live below their means: You make money by saving money (and reinvesting it wisely). That’s why a lot of self-made moguls spent their early years living slightly below their means, and stockpiling excess cash for other investment opportunities, according to Ed Butkowsky, managing partner of Chapwood Capital Investment Management. As you begin to accumulate wealth, living below your means no longer means sacrifice. It means being modest.
2. They promote themselves (and their brands): If you want to get a job done, sometimes you need to do it yourself. Diplomacy and self-promotion are major keys to building a strong reputation, attracting investors and encouraging others to listen to your ideas. Self starters need to develop strong promotion and marketing skills, if they expect their brand to flourish. Use the media, use the web, use every outlet at your disposal to keep your business ideas (and yourself) in the public eye.
3. They overcome adversity: You don’t make an omelet without breaking some eggs. And most big-name millionaires (or billionaires) have plenty of stories about the failures they’ve absorbed throughout their careers. In many cases, it’s a case of simply staying the course and learning from your mistakes, rather than repeating them. Every investment is a risk, but the best investments are calculated risks – the type that minimize your chances of failing, and ensure the possibility of failure won’t run you dry. Or, as Conrad Hilton once put it: “Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don’t quit.”
4. They develop a strong backbone: Once you start to enjoy a certain degree of success, other salespeople, business execs and ambitious entrepreneurs will be coming to you, hoping you’ll invest in their products or ideas. Making the wrong choices and/or entrusting your capital to someone who makes poor investments could very well sink you financially. Have a solid process that ensures you invest your money wisely, and follow every step before agreeing to invest the money you’ve earned.
5. They buy low, sell high: Speculate. Do your homework so you see the angles, the market potential, the comers and the goers. This is an age-old saying on Wall Street, but it applies to just about every facet of business, and life.

Source: “Top 5 Tips to Build Wealth and Success,” by Peter Gorenstein and Farnoosh Torab, Financially Fit, 10/2/10.

The survey, which was conducted by StrategyOne, polled more than a thousand American consumers. Among the 65% who believed a double-dip recession (which could only be brought on by two more consecutive quarters of negative economic growth) was imminent:

• 44% believe the second wave of recession will be worse than the first
• 21% believe it could be “much more severe,” and
• 23% doubt the U.S. economy will ever fully recover.

Still, when pressed, 52% of those polled said they felt America’s best days were still ahead – a sign that while recent headlines and warning signs may have consumers thinking gloom and doom, there’s still a strong sense of optimism for the future.

The bottom line: American consumers are keeping their purse strings tight for the time being. In addition to the 41% of consumers who say they plan to cut back spending over the next 3-4 months:

• 35% say they plan to spend less online (only 12% plan to increase their online spending)
• nearly 80% say they plan to spend less during the holiday season
• 87% say they plan to roll back or avoid big-ticket purchases, and
• 26% don’t expect their personal finances to fully recover until after 2011 (just as many doubt their finances will ever make a full recovery).

Perhaps the best thing salespeople and marketers can do to weather the storm is remind skeptical prospects:

• The U.S. economy has made slow, steady gains over the past several quarters, indicating progress, and, more importantly, ensuring that a double-dip recession isn’t even possible over the next several months.
• Layoffs are down, the majority of companies have lifted their hiring freezes and most corporate sectors are on the mend.
• It’s never been more crucial to buy (or invest) in American companies than it is right now. The more consumers invest, the better chance the U.S. economy has of growing (a true win-win).

Source: “Two-Thirds of Americans Expect Double-Dip Recession,” a PR Newswire press release.

1. Help buyers hit the ground running. With so many economists optimistic about economic recovery, a lot of prospects are considering how they can capitalize on new opportunities and recover some of the business they’ve lost over the past few years.  Salespeople who focus on solutions that give prospects a competitive edge are much more likely to win their business. Ask prospects how they plan to grow their businesses in the year ahead. It’s a great way to put the emphasis on their needs, while gaining some insight into what impact (if any) the recession has had on their company. It also lets you know what the prospect’s priorities are, so you can adjust your value proposition to mirror those priorities.
2. Differentiate your offer. Right now, a lot of prospects are facing the same challenge salespeople are — finding a clear way to differentiate their products and services from the competition. Value-added salespeople respond by focusing on how their offer can help buyers save on costs and/or boost revenue. Some sales pros even develop their own competitive analysis, which helps prospects see a clear breakdown that highlights all the reasons why the salesperson’s offer provides more long-term value and how much revenue the prospect’s company stands to lose by not agreeing to move forward with the sale. A competitive analysis also help you anticipate (and perhaps even avoid) objections, while highlighting the areas where an incumbent supplier may be coming up short.
3. Sell solutions, not services. Prospects want to do business with a salesperson (and company) whom they view as reliable. That means proving to prospects that you understand their industry, their company and all the ways the economy has impacted the way they do business. One way to accomplish that: Present solutions that demonstrate clear ROI, and break down how each solution can make the buyer’s business more successful. Let prospects know you’re excited about building a partnership by offering solutions that show you’re in it for the long term.
4. Use loyal customers as leverage. Proven results are a major selling point, which is why so many salespeople rely on buyer testimonials to boost credibility. Used correctly, testimonials and case studies can create the type of trust that compels a prospect to buy. Case studies can also demonstrate how your products and services have helped some of the prospect’s top competitors generate more revenue and/or branch out into new markets. You may even want to take it a step further, by showing prospects how much revenue they stand to lose by stalling, or putting off the sale indefinitely.

For sales and marketing pros to get up and run while the economy is on its hands and knees means avoiding these seven mistakes.

Mistake #1: Relying on your gut instincts

Some business people seem to think that relying on information is a sign of weakness. They are more comfortable trying to guess correctly than they are attempting to get the facts and accumulating the necessary information to help the prospect make an informed decision.

Mistake #2: Always keeping your eye on the competition

Just because the competition is doing it doesn’t make it smart, effective or correct. Following the competition like a shadow may be a sign of a lack of confidence. Top business pros see themselves as innovative, cutting-edge pacesetters — not second-hand followers. They embrace new ideas and suggestions on how to stand out from the competition.

Mistake #3: Focusing solely on product quality and price

Top revenue generators recognize that just offing a great deal on a quality product isn’t nearly enough in today’s competitive market. They recognize that they can get everything right in terms of the product and price — but unless they complete the process with incredibly good customer service, they run the risk of losing business.

Mistake #4: Believing a quick payoff is better than making an investment

The extended slowdown may be creating serious panic at some organizations. They may respond by making few investments in their customers and concentrate only on making the sale today. But those who’ll come out on top now — and when the economy rebounds — recognize the importance of making long-term investments in existing customers. It’ll boost customer loyalty, which in turn will keep sales up despite economic conditions or increased competition.

Mistake #5: Thinking the sale is made after the presentation

Oftentimes, the sale is made — or lost — before the presentation begins. It’s what happens before the presentation that determines whether the sale is made. How is the salesperson or your company perceived by prospects? Do prospects trust you? Do they know you’re willing to share your industry knowledge and expertise both before and after the sale.

Mistake #6: Taking rejection personally

It’s never easy to learn that you’ve lost a sale or an existing customer to a competitor. But never take rejection personally. Use it as a sign it may be time to review your techniques and try to pinpoint areas for improvement.

Mistake #7: Relying heavily on relationships to sell

There was a time when one customer could influence numerous decision makers within their own company. But that trend’s fading out. Today, department heads want more autonomy. They want to make their own decisions, because more companies are holding decision makers personally accountable for their actions. Being overly reliant on existing relationships to help boost sales can be dangerous today.

1. The Pulse of Commerce Index (PCI): PCI measures the amount of diesel fuel being purchased at truck stops around the country. The amount of goods carried by these trucks and the frequency of routes give economists a sense of how robust business is flowing.
   The good news: the PCI jumped 3.1% between April and May – the largest one-month increase since 1999.
2. Service sector shipments: The service sector measures the amount of scrap and waste material hauled off by trains every month. This statistic is always relevant because it reflects the rate of production in several industries, most notably manufacturing.
   The good news: Waste and scrap shipments hit their highest rate in 16 years last month, a solid indication businesses are ramping up production.
3. Electric output: The Edison Electric Institute monitors how much electricity the corporate sector uses every week.
   The good news: Usage for the first week in June was up nearly 11% from the same week in 2009, a sign of more employees, higher productivity and increased work hours.

What do you think? Are these all signs of a rebounding economy, or simply a reflection of businesses fighting an uphill battle to boost production and staff, despite ailing revenues?

Feel free to share your thoughts in the comments section below.

Source: “These Below-the-Radar Indicators May Signal Growth,”
by David Bogoslaw, BusinessWeek, 6/15/10.

1. Employment: A lot of job creation has been temporary, and when there are jobs popping up in certain markets, it seems as if they’re almost immediately canceled out by layoffs somewhere else. With some of the largest states in the country still fighting exorbitant unemployment rates and stimulus jobs (as well as census jobs) drying up, what will it take to fix the job market?
2. Housing: Things are still dismal despite a bright spot here and there. New home sales have fallen off a cliff and prospective homeowners are afraid to buy with so much uncertainty surrounding the economy. What does the housing market need to get back on its feet and what steps should be taken to fix it?
3. Credit: Banks aren’t lending, consumers are afraid of borrowing, the government is clamping down on credit regs, and independent, high-interest loan companies are in a position to bleed consumers dry. The overall effect is a credit market that’s still in complete disarray. How can small business owners secure the loans they need to grow? How can the credit market right itself so consumers and business owners feel secure borrowing?
4. The stock market: It’s up, it’s down … it’s down. How can the market right itself and gain the consistency necessary to make investors feel secure about throwing their hats in the ring again?

What do you see as the major problems that are keeping the economy from a full recovery? What has the current administration done right? What has it done wrong? Should we stay the course? Or abandon these policies altogether?

Please feel free to share your thoughts in the comments section below (and pass along this link to friends and co-workers so they can share their thoughts as well).

The strategy: Several of today’s top retailers are literally buying customer loyalty. It’s a short-term strategy aimed at winning sales now, then keeping customers in the fold once the recession lifts (assuming the strategy pays off in the short term).

Some key examples:

• Sam’s Club is offering to back loans to customers for up to $25,000, based on them meeting standards approved by the Small Business Administration.
• Target is offering 5% discounts on most products to club card members, as a way to attract and lock in members now, so they continue to shop with Target for years to come.
• Staples and Office Depot are unloading old or outdated stock by either selling it for a penny or giving it away for free (with a minimum purchase).

All three strategies are different takes on the same philosophy — do what you need to win customers’ loyalty now, so once spending goes up again, you’ll already be their go-to source.

As a lot of the government stimulus programs near their end, retailers are picking up the same torch and running with it, in the hopes their generosity will translate into long-term profits.

Large companies are in a position to gain an edge over smaller competitors by using these tactics, as high unemployment, slow spending and a lack of confidence have made small business owners leery of offering credit.

The Sam’s program, in particular, is the result of a partnership with Superior Financial Group, which will manage the loans and the application program. Because Superior believes the program will provide such a boom for Sam’s, it’s offering a $100 discount on credit application fees along with low interest rates.

The takeaway: Retail is largely a B2C industry, where the biggest obstacle is a lack of consumer confidence/spending. Every industry has a similar obstacle that most salespeople (and sales managers) need to overcome. Consider what the one thing is your customers need most, and build a promotion that speaks to that need. It won’t only help you win sales, there’s a decent chance it’ll help you boost loyalty as well.

Source: “Retailers Devise Novel Ways to Boost Sales,” by Stephanie Clifford, New York Times, 6/4/10.

1. Environmental consulting: With all the talk about green buildings, green companies and green initiatives, environmental consultants are in high demand. Not only do most companies feel a stricter responsibility to be environmentally sound (not only from a legal perspective, but also in the sense they feel a social obligation), but new buildings, homes, parks and other initiatives are now being built in an environmentally sound way. Besides which, companies have realized that being green also means saving on energy and supply costs.
2. Home health care: With so much confusion about the ins and outs of the new healthcare package, and healthcare costs for hospital stays and care escalating at an astronomic pace, a lot more people are opting to treat their condition at home. That means getting in-house care, as well as pharmaceuticals delivered, in addition to other services. The New York Times recently reported that “telemedicine” (i.e., consulting with a doctor at home via Web cam) is now growing at a rate of 10% a year. That industry grossed more than $500 million last year.
3. Health drinks and organic food: The fitness craze is in full swing and Americans are moving toward a much more health-conscious diet. Fast food is still popular, but frowned upon. More people are insisting on organic foods, and natural juice drinks are all the rage.
4. Public storage: The housing crisis had an odd, if not fortunate, side effect for this industry. All those displaced needed a place to keep their possessions while they looked for a new place to live. That trend continues, as the storage industry raked in more than $22 billion last year. The most interesting part: Because of the nature of the business, more than 90% of the industry is independently owned by small companies and entrepreneurs.
5. Mobile apps: If you can dream it, believe us … within five years, there’ll be an app for that. This industry is exploding, and the best part about it is any innovative companies can hop on board by creating its own app.

Can you think of any other industries that are ready to boom? Feel free to share your thoughts in the comments section below.

Source: “The Best Industries for Starting a Business 2010,” Inc. Magazine.

The latest positive boost to the economy, a 3.2% jump in the first quarter of 2010, was strongly prompted by consumer spending, according to the Department of Commerce.

Consumer spending accounts for nearly 70% of the U.S. economy, so the recent boom in GDP could be a sign consumers are in a position to spend again.

Still, skeptics argue the recent uptick could be a mirage, spurred on by temporary jobs, stimulus spending and other government programs that continue to plunge the country into debt.

The unemployment rate recently increased from 9.7% to 9.9%, despite the addition of nearly 300,000 jobs nationwide. That means companies are still cutting staff at a faster rate than new jobs are being created.

Until that trend begins to reverse itself, experts warn the economy (and consumer confidence) will continue to be on shaky ground.

What do you think? Is the economy definitely back on track again or are we simply sinking ourselves deeper into debt, long term?

Feel free to share your thoughts in the comments section below.

Source: “Consumers Help Drive U.S. Economy to 3.2%Growth Rate,” by Catherine Rampell, New York Times, 4/30/10.

The recession is lifting in some metro areas much quicker than others, which is precisely why now’s the time to start prospecting in these U.S. cities:

1. Austin, TX. Austin was a burgeoning city before the recession hit, and that momentum has helped it maintain job growth throughout the recession with more optimistic signs on the horizon, according to a recent Forbes study. With a robust local economy fueled by a huge tourist trade (thanks to two annual week-long music and arts festivals and the University of Texas), Austin is one of the best (and often untapped) regions for sales and marketing organizations to focus their efforts.
2. San Jose, CA. Technology is one of the few fields that’s continued to expand despite the recession, which is a large part of the reason this Silicon Valley mainstay has emerged as a decent area to canvass. San Jose is home to several progressive companies in need of cutting-edge solutions. Companies that are able to respond to that need are in an excellent position to win more business.
3. Portland, OR. Over the past five years or so, Portland has grown more attractive to young professionals looking for an affordable city to live in. Portland still struggles with high unemployment, but its reputation as a center for green companies and eco-friendly initiatives put it at the forefront of metro areas that are in a position to grow and thrive.
4. New York, NY. Times may be tough and rent may be high, but New York is still the city that never sleeps. New York makes the list not so much because it is recovering from the recession quickly, but because the rest of the country needs New York to recover quickly. Plus, there are always new businesses and opportunities booming in Manhattan.
5. Olympia, WA. Olympia benefits from two emerging dynamics. First, the job market in Olympia is growing. Second, a lot of businesses are migrating to Olympia as a way to escape Seattle’s higher rent, taxes and overall cost of doing business.
6. Washington, DC. The public sector in D.C. is hiring again, and that’s good for the private sector in the nation’s capital as well. Meanwhile, the local housing market is beginning to stabilize, all of which are positive signs for sales organizations looking for metro regions to target.
7. Los Angeles, CA. While the show biz industry may not have proven as “recession proof” as it had during past downturns, L.A. is rebounding quite nicely. The job growth forecast for the next three years is optimistic and the region is a large source of GDP — a key economic indicator that’s continued to grow for the past two fiscal quarters.
8. Raleigh, NC. Raleigh is fourth overall when it comes to metro job growth, and the forecast for future job growth is positive as well. Combine that with a low 5% unemployment rate and a reasonable cost of doing business, and Raleigh is an ideal place to seek out new sales opportunities.
9. Fort Collins, CO. Fort Collins boasts reasonably low mortgage rates for a metro area, which is a tremendous draw for young professionals. But job growth is also projected to improve during the next three years. Beyond that, Fort Collins isn’t targeted by businesses nearly as much as Denver — which means there may be untapped opportunities waiting to be found.
10. Greenville, NC. Small city, low cost of doing business and a reasonable amount of job growth make Greenville a worthwhile stop for any sales organizations looking for hidden treasure.

How has the recession impacted your area? Have you started to see any signs of recovery? Let us know in the Comments Box below.

Adapted from “20 Cities Surviving the Recession,” by Miranda Marquitt, MainStreet, 5/11/10.

The poll, which was conducted as part of the biannual Regus BusinessTracker study, included responses from more than 15,000 companies across a broad range of industries. Among the findings:

• 7% more companies are now reporting profits than were six months ago
• 12% more companies experiencing a boost in revenues rather than a decline
• 59% of large businesses advocate the importance of tax breaks for consumers and consumer spending
• the overall decline in revenues is most prevalent in the manufacturing industry, and
• the overall increase in revenues were most prevalent in the IT industry.

Despite the survey’s overall optimistic tone, when business execs were asked point blank when they expected a full economic recovery, the majority responded that they didn’t feel the economy would make a full recovery until December.

When execs were asked the same question six months ago, they believed a full recovery was possible by July.

What do you think of the survey’s findings? Agree? Disagree?

Feel free to share your thoughts in the comments section below.

Source: “Revenues Rising but Slowdown in Pace of Growth,” Industry Week, 5/5/10.

The cost of paying back debts has decreased for years, but now, as the national debt rises, inflation is sure to come with it, according to a recent New York Times piece.

Economists point to the housing market as the first place where increased interest rates will begin to have an impact. This is particularly disparaging news for prospective homeowners, as a 1% increase in the interest rate could increase the total cost of the home by nearly 20% over the life of the loan.

Credit cards are another area where consumers will likely see a rise in interest rates. The average interest rate on credit cards recently reached its highest rate in 10 years (14.3%), according to the Fed. That jump represents an average additional cost of $200 in credit interest per household over the past year alone. And experts predict that number will likely rise even higher.

Car loans are also on the rise. The average interest rate on a car loan has jumped 1.3% over the past three months alone.

All this is in addition to national debt issues that should cause additional inflation in the months and years to come, as companies and the government, continues to dig itself out of this mess.

Do you think there’s any way to avoid these interest hikes? What should the Fed do in the months to come to avoid another credit crisis?

Feel free to share your thoughts in the comments section below.

Source: “Interest Rates Have Nowhere to Go but Up,” by Nelson Schwartz, New York Times, 4/10/10.