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Riding the Waves of Uncertainty

Written by: Jude Smiley

Article Overview: Doing business in tough times seems to be the major focus of every conversation these days. Three strategies for getting through any economic storm ahead.

Riding the Waves of Uncertainty

Many times over the last few weeks I have found myself in conversation with other business owners over what the effects of a slowing economy will potentially have on our businesses. Although each of us has very different business lines and we provide different products and services, we each agreed that the recent events of the world are definitely cause for concern. We also all agreed that it is not uncommon when faced with uncertainty in business and in life, for people in general to go into hiding and wait for some kind of sign that better days will soon appear.

What struck me the most in all almost all of my conversations was the fact that people seem to be waiting for someone else to “fix” things. But passing the responsibility onto “them” is unrealistic today. We are all responsible for our performance, and the performance of the economy.

So what causes these planned slow downs to get out of hand?

First of all, people by nature over exaggerate and make big mistakes. The first one being that they slash their marketing and sales budgets. They bring in the sales force and put a hold on their marketing efforts. Who can afford advertising if the buyers aren’t there they reason? And then they wonder why no ones buying and mope about their low sales figures.

The second mistake most businesses make is the decision to break into new areas and begin developing new products and service lines. Instead of focusing on what they do best, companies decide now to try a little of this and try a little of that. Spreading themselves thin in both productivity and profits.

Putting a freeze on major decisions is the third mistake that businesses typically make. In process projects are put on hold and human resources is ordered to not hire anyone. Employee rosters are hastily reviewed and seemingly over indulgent staff let go. New initiatives are scrapped and internal moral slumps.

So what can we do to minimize the effects and move forward? Well I can guarantee you that there is no magic formula, but history has shown that whenever there has been a recession or major catastrophe, the economy has always bounced back and been stronger and more resilient than ever. Here are some thoughts I’ve gathered from my own 14 years in business and the collective experience of my clients and associates whom I’ve discussed these issues with.

First of all, Smart Businesses will see an economic slowdown as an opportunity to get in front of their clients and prospects, cheaper and more effectively. If the majority of businesses decide to slash their marketing efforts, Smart Businesses beef theirs up. They work together to build creative and cost effective messages that connect to a broader audience. When things start coming back, they are well ahead of their competition in building new long and loyal client relationships.

Secondly, Smart Businesses take the time to revisit their goals and focus on their core competencies. Review your business plan and ask the questions. Why are we in business? What need to we fill in the market place? What are the main areas that we excel at and how can we strengthen those? Where can we cut costs and beef up productivity? Consider lowering inventory levels and refocusing funds on sales. Knowing what the real objectives are will help businesses stay focused and prioritize their activities for the greatest advantage. Smart businesses take the time to focus on their customers. Talk to them, visit them, ask them how they are doing and find ways of being of service.

And finally, Smart Businesses stay positive. Every cloud has a silver lining and like my father used to tell me, when one door closes you can be certain that a window is opening somewhere. Be patient but surround yourself with positive people. Spend time with friends and family. Talk about what’s going on with others. Don’t hide your head in the sand; find new and creative ways of working through issues. Share your optimism and your enthusiasm about the future and its guaranteed to rub off and spread.

Good Luck and Best Wishes!

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Article Tags: better days, budgets, business lines, business owners, conversations, decisions, developing new products, different products, economy, employee rosters, fact that people, human resources, initiatives, marketing efforts, mistake, productivity, profits, slow downs, slumps, uncertainty



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