7 Tips To Boost Your Business in a Down Economy
 |
Free Download - 15 Ways to Motivate Your Employees By Howard Shore |
Listening to the news and many CEOs, you would think the country is in a depression. At a minimum, these reports put listeners into a depression. While I’m willing to let a few individual businesses slide because of what they do (e.g. residential real estate in Miami), if your company is not growing the way you want it to, and/or margins are shrinking, the problem is inside your company. If you believe otherwise, you are deceiving yourself. In many cases, even in sectors where the group as a whole is doing poorly, you should still be able to do better than you’re doing. Just like Warren Buffet does in the stock market, you need to jump on opportunities when the market is down and be aggressive, not defensive.
Some great examples:
- I recently met with the Managing Partner of a mid-sized accounting firm who confided in me that he just came off a record year and did not believe his company could sustain the pace. He was already seeing a slowdown. However, one of his competitors, who also is my client, is having another record organic growth year.
- In the fitness and health industry, many companies see a drop off in memberships and attribute it to people spending less on “extras.” I have a client whose year-over-year growth this summer was 49%, and gross margins have expanded as well.
- Another client of mine has a business that services the airline industry. You would think they would be doomed. Yet based on their order backlog, they expect 33% growth this year.
- Staffing industry executives tell me their industry is down 30%, and many are laying off staff and otherwise cutting costs “until things get better.” I know of one company in the same market that entered the staffing business and in the last 2 years. They are growing in the high double digits and opening offices in several new states, having identified and pursued a segment of the staffing industry that is booming.
- The owner of an insurance company experienced a decrease in revenue last year and is expecting another decline this year. Meanwhile, I work with a competitor that is tracking organic growth of over 50% this year.
The initial secret of success for the above four companies is the executive team’s attitude about how they see the marketplace. When the market gets tough, that’s when a management team needs to be aggressive. Top CEOs know that the best opportunities present themselves when competitors are weak. Right now, your competitors are weak. They are focusing on costs. This defensive approach can kill a business. It usually starts with staff reductions. If the company does not get lucky in short order, it becomes vulnerable in 4 ways:
1. Many companies release quality talent. Research shows that 1 top performer produces the value of 3 average employees.
2. They reduce staff in the areas that are most important to servicing clients, causing a decline in customer satisfaction. Be very careful when reducing positions that interface directly with your customers or affect customer satisfaction. This will have a dramatic affect on their loyalty to your company and will make them vulnerable to your competition.
3. They stop investing significant time and money in strategic planning and research and development. This failure to innovate and take advantage of new market opportunities results in not seeing that customer needs have changed. For example, anything you can do to help reduce energy costs for business is a huge opportunity right now. If your competitor can add this on to their offering, you will lose your customer.
4. They extend intervals for maintaining equipment, have people working too many hours, or implement some other internal policy changes that reduces product quality. This causes another opportunity for you to lose market share.
Okay so what can your companies do right now to ensure 20% or more growth?
1. Planning – Have and work with a written business plan.
2. Core Customer – Identify who is your most profitable and loyal customer, and focus on those customers that will most likely buy your product or services in the quantity required for optimal profit.
3. Differentiate – Make sure that your company has an uncommon offering that is targeted toward your core customer that your business will “own” and leverage.
4. Invest in Your Sales Force – Get rid of your “C” players immediately. Invest whatever it takes to train and develop your “A” and “B” players to peak performance.
5. Improve Hiring Process of Sales Force – In our experience most companies do a very poor job in hiring salespeople. The assessment tools and interviewing processes they use produce a poor success rate. This costs companies a lot of money on the top line.
6. Find Top Talent – Evaluate every employee at least once a year. Get rid of your “C” players, and figure out which of your “B” players can be developed into “A” players.
7. Marketing – Great advertising and public relations is what attracts potential business to your sales force.
In summary, it is important that CEOs realize that a down economy is an opportunity. Also, while I agree that all companies should always manage their expenses prudently, you cannot cut your way to prosperity. While focusing on costs, many companies inadvertently destroy their top line, requiring them to put more pressure on the cost line, thus creating a spiral effect. I would rather step on the gas and grow the top line while managing my costs well and never have to worry about layoffs.
7 Tips To Boost Your Business in a Down Economy - To learn more about this author, visit Howard Shore's Website.
Like this article? Share it with your friends
| Article Tags: |
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
|
As a Certified Information Systems Auditor, Michiel assists businesses in a professional capacity by evaluating the threats to their businesses. He acquired the necessary knowledge, skills, and techniques to minimize a business owner’s risk of business failure and to maximize his chances of high growth and success. He strongly believes that you CAN maximize your chances of business success, by implementing the business solution he has advocated for more than 12 years in your business plan and planning. Michiel has decided to share his experience with business owners by putting almost everything he knows in a business plan and survival guide (compiled in an e-book format) and written as a high growth SMB coaching course for SMB business owners, directors and managers - titled as the “Survival Kit for Small and Medium Businesses - Profit from your Business Risks!” According to Michiel, his goal was to add new techniques to a business owner’s business planning survival kit and instruct him or her in using these in the future - without any help from a consultant! For more information about the benefits of implementing profit protection planning in your business, please visit: http://www.business-around-the-globe.com - Visit Michiel Jonker's Website |
|||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Howard's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
|
||
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 The Flowing Point Think Networking Increase Sales Internet Marketing Campaigns Lifestyle and Leadership |
|
 | ||
 |
Top 50 SEO Posts - 2008
Top SEO Posts of the Year | |
 |
Top 50 Business Plans
Top Business Plan Blogs | |
| ||
 | ||||
| ||||
|
 | ||||
| ||||
|
|
 | ||||
| ||||
|
 | ||||
| ||||
|
|
|
||||||||||||
 |
|
|
|
 | ||||||||||||
| ||||||||||||
|
|
||||||||||||