The economy has most people concerned and rightly so. If you listen to the national news, you'll hear statements like "we haven't seen anything like this since 1992" or in some instances, the reference will be back to 1982. I ran businesses during both those recessions. In 1982, I was running my second turnaround company. In 1992, I started my own business.
I didn't realize, at the time, I was doing things successfully in times, so trying, those periods would become benchmarks for future recessions. I simply did those things I knew would be beneficial to the business over the long term.
Unfortunately, during these difficult economic times, many business owners will make moves that will end up being detrimental to their business. They will listen to the talking heads on national news, get overwhelmed by the dire predictions and expect the slash and burn tactics of the large corporations is the model to follow. I recommend small business owners listen sparingly to the gloom and doom on the national news shows and business broadcasts.
Don't think about the reported unemployment figures of 7% to 8%, or the decline in consumer spending of 2% to 3%. Put those figures in context and realize we still have employment of 92% to 93% and consumer spending at 97% to 98% of normal.
Don't buy into the media reports, that the glass is virtually empty. Do the employment and spending figures, as I restated them, look like an empty glass? Just the opposite; there is still a tremendous amount of employment and spending. That means there is still a viable market for your goods and services.
Let your competitors buy into the 'sky is falling' reports that come to us at every turn. In many instances, they will buy into the negative hype and simply try to hold on as best they can to survive. Or better yet, from your standpoint, they will take all the knee-jerk reactions that will do more damage than good to their businesses.
It's not my intent to have you look at the world through the lens of rose-colored glasses. Maintain your perspective; realizing it's not all black, either. Remember, you are a small business with the ability to be innovative and implement change at virtually a moments notice. Use the creativity and flexibility that have gotten you where you are today. Attack today's economy with the same enthusiasm you always use to pursue opportunities.
Here is a short list of things you can consider doing that you should periodically look at; whether the economy is growing or contracting.
Take a pragmatic view of your overhead items. It's quite common when times are good and the business is growing for a company to take on more overhead cost than is absolutely necessary. When you review your overheads, identify those you can reduce without damaging the business, then either reduce or eliminate them.
Contact your customers. Ensure them of your viability. Let them know you're going to be there to continue fulfilling their requirements. Consider providing them some low-cost, value added features or benefits to strengthen their loyalty. Ask them for a business referral.
Review your operating policies and procedures. Be alert for ways to streamline the way you run your business in ways that will reduce your direct costs.
Review your personnel. People are a big part of the cost in any business and many businesses will immediately jump to reduce staff. Your people are also the primary reason why your business has been successful, so it is important to be very cautious with any staff reduction.
You have an investment of your people, and you don't want to throw that investment away, if it can be avoided. Also, if not planned properly, a reduction in staff can create more problems within your business than benefits.
If you determine there are employees that have been performing below expected levels, they may be possible candidates for reduction. However, before cutting them loose and potentially putting an overload on other employees, consider the streamlining of operating procedures mentioned above. Look for ways the work can be reorganized and redistributed in any manner that will get the work done without the need for that employee or employees, even when the business rebounds. As indicated, the items above are actions a company could and should be doing, whether times are good or bad. The list is not intended to be all-inclusive, but addresses important areas that should yield benefits without being overwhelming to you and your organization.
May all your actions be Silver Bullets.
I didn't realize, at the time, I was doing things successfully in times, so trying, those periods would become benchmarks for future recessions. I simply did those things I knew would be beneficial to the business over the long term.
Unfortunately, during these difficult economic times, many business owners will make moves that will end up being detrimental to their business. They will listen to the talking heads on national news, get overwhelmed by the dire predictions and expect the slash and burn tactics of the large corporations is the model to follow. I recommend small business owners listen sparingly to the gloom and doom on the national news shows and business broadcasts.
Don't think about the reported unemployment figures of 7% to 8%, or the decline in consumer spending of 2% to 3%. Put those figures in context and realize we still have employment of 92% to 93% and consumer spending at 97% to 98% of normal.
Don't buy into the media reports, that the glass is virtually empty. Do the employment and spending figures, as I restated them, look like an empty glass? Just the opposite; there is still a tremendous amount of employment and spending. That means there is still a viable market for your goods and services.
Let your competitors buy into the 'sky is falling' reports that come to us at every turn. In many instances, they will buy into the negative hype and simply try to hold on as best they can to survive. Or better yet, from your standpoint, they will take all the knee-jerk reactions that will do more damage than good to their businesses.
It's not my intent to have you look at the world through the lens of rose-colored glasses. Maintain your perspective; realizing it's not all black, either. Remember, you are a small business with the ability to be innovative and implement change at virtually a moments notice. Use the creativity and flexibility that have gotten you where you are today. Attack today's economy with the same enthusiasm you always use to pursue opportunities.
Here is a short list of things you can consider doing that you should periodically look at; whether the economy is growing or contracting.
Take a pragmatic view of your overhead items. It's quite common when times are good and the business is growing for a company to take on more overhead cost than is absolutely necessary. When you review your overheads, identify those you can reduce without damaging the business, then either reduce or eliminate them.
Contact your customers. Ensure them of your viability. Let them know you're going to be there to continue fulfilling their requirements. Consider providing them some low-cost, value added features or benefits to strengthen their loyalty. Ask them for a business referral.
Review your operating policies and procedures. Be alert for ways to streamline the way you run your business in ways that will reduce your direct costs.
Review your personnel. People are a big part of the cost in any business and many businesses will immediately jump to reduce staff. Your people are also the primary reason why your business has been successful, so it is important to be very cautious with any staff reduction.
You have an investment of your people, and you don't want to throw that investment away, if it can be avoided. Also, if not planned properly, a reduction in staff can create more problems within your business than benefits.
If you determine there are employees that have been performing below expected levels, they may be possible candidates for reduction. However, before cutting them loose and potentially putting an overload on other employees, consider the streamlining of operating procedures mentioned above. Look for ways the work can be reorganized and redistributed in any manner that will get the work done without the need for that employee or employees, even when the business rebounds. As indicated, the items above are actions a company could and should be doing, whether times are good or bad. The list is not intended to be all-inclusive, but addresses important areas that should yield benefits without being overwhelming to you and your organization.
May all your actions be Silver Bullets.