In History, Fortune Favors the Brave (and the Smart)! 

by Mark V. Matz

It is widely circulated that those who fail to learn the lessons of history are often condemned to repeat its mistakes.  On a more positive note, history can also help provide the roadmap for unparalleled success for those who take some time to learn from the past.  I hope you’ll take a short journey back in time and spot some of the techniques to make your future more successful.  

Most people compare the recent economic downturn with the Great Depression of the 1930’s or a more severe version of the 1987 stock market crash.  But did you know how many major financial dilemmas before 2008 that the United States faced since the country was formed?  The answer is 10!  These were in 1792, 1819, 1837, 1857, 1869, 1873, 1893, 1907, 1929 and 1987.  But after each, the county saw expansion and growth.  Fortunes were made as new industries and businesses arose.  What is the great lesson learned?  That NOW is the best time to look ahead to position yourself as a leader while America gets back to business.  

The reasons for the financial problems in the 18^th and 19^th century may have some bearing on today, but taking a closer look at what happened after 1929 will demonstrate how a few well-known companies took advantage of the times to expand.  In a word, they advertised!  Essentially, the companies that survived and grew out of the Depression are the ones that created a demand and filled the need for their goods and services to a public not prepared to spend on anything but the basic necessities of life.   

Proctor & Gamble - Using the most advanced medium of the time, radio, this company increased their spending while their competitors cut back to levels of almost invisibility.  In every major recession since, this company has continued to learn their historical lessons and has done well.  

Chevrolet – In the years leading up to the Crash of 1929, it was the Ford that outsold the Chevrolet by approximately 10-1.  By 1931 through increased advertising, the new six- cylinder Chevy took the lead (where it remained for the next 5 years).  Until the recent troubles in the auto industry and economy overall, General Motors remained the giant.  

Camel Cigarettes – Remember, back in those days people smoked like we use bottled water now!  In 1920, Camel was the top brand until the American Tobacco Company introduced their Lucky Strike, which by the start of the Depression was now the number one brand.  Then Chesterfield moved up and overtook Camel as well.  With a calculated risk, Camel introduced a massive increase in ad spending which by 1935 clearly demonstrated the power of advertising when they once again were number one.  

What these three examples illustrate is that opportunities exist to increase business no matter how badly the economic situation around you looks.  What it also demonstrates that doing nothing or cutting back the budget without some plan to continue marketing will cause a business greater hardships.  Taking the initiative and finding a new way to share your expertise with prospective clients is the cure to what is ailing the industry right now.  While you may not want or be able to afford an all-out marketing effort, taking some steps are essential.  It is also important to spend some time in the active pursuit of new or increased business, no matter how many files are stacked on your desk.  There are companies or consultants that can also assist you with limited projects all the way up to a full-blown marketing plan that will fulfill long-term strategic and tactical goals.  What’s the one sure way to lose in these tough economic times?  That’s easy!  Just sit back and do nothing at all.   

I’ll leave you with one quote by a man who if he were in the credit industry, would certainly be listened to, General George S. Patton who said “A good plan, violently executed NOW, is better than a perfect plan next week” .