SLOW ECONOMIC TIMES ARE NOT THE TIMES TO DO NOTHING IN YOUR BUSINESS. HERE’S WHY….

There is definitely a risk to business owners with a “wait and see” attitude.  Just to name a few:

• Loss of market share
• Lost customers
• Loss of profitability
• Loss of cash flow
• Loss of liquidity
• Inability to keep up with technology
• Loss of productivity
• Loss of key employees
• Panicked employees
• (Worst scenario)—Loss of your business

The greatest risk is the fear induced by the thought of the above happening in your business.  This kind of fear can actually paralyze a person’s thinking, and it is the thoughts that control actions.  Disabled thinking equals immobility in your business.  Even though your business may not be at risk, this thinking makes you feel threatened.  It goes back to the old adage, “If you think you can, you will, and if you think you can’t, you don’t!”

I’m sure most days, nowadays, you feel that your business is a battlefield, and you are unsure whether to take the offense or the defense, especially when both cost money!  Extra money you either don’t have or feel you don’t have.  Bottom line is you are like to many entrepreneurs, and know you did not get where you are today by sitting on the sidelines!    You know the distance between success and failure is measured by the three “P’s”—Preparation, Persistence and Perspiration.  “When the going gets tough, the tough get going!”

You can make this soft economy work for you!

The first step is a realistic and effective business plan.  I am amazed every day in my conversations with business owners who sheepishly admit to having no business plan.  How do they know where their business is going?  Are they even aware when they get there?  Worst of all, how much further could they have gone if they planned and tracked their success on a daily basis!

On today’s business battlefield a good survival plan includes:

• Finance
• Budget planning
• Training
• Business Development Plans—both in Customer development & technology
• In-house survival management team

Finance:

In an article, How To Survive An Economic Depression, written by Gaynor Borade, he suggests the first financial issues to be addressed are:

·                    Quick repayment of debt

• Purchase of necessary supplies
• Storage of important assets & asset management
• Preference of cash payments instead of credit cards
• Identifying and clearing high-interest loans, if any
• Quick shift over to adjustable rates of interest
• Clearance of unsecured debt and adherence to a debt management                   plan
• Cheaper replacements for commodities that weight heavy on fuel
• Strict adherence to a budget plan and risk management strategies
• Negotiations w/suppliers & clients, in tandem w/new budget

It is also important that one understand that liquidity and cash flow are two different animals.  A business can have good cash flow and not be liquid, and conversely, a business can be liquid with poor cash flow.  However, it is the second business that will survive.  Liquidity talks about business solvency—Their repayment ability, overall profitability and financial efficiency.  Good cash flow is part of being liquid, together with assets that can be easily turned into cash, bonds or even investments that offer solid dividends.

SPIA has associates on staff who specialize in finance and business turn-arounds.  This is definitely “value added” to your business, especially when you consider our 25% guarantee.*

Budget Planning:

It is not hard to imagine that the majority of businesses today need to look at budget adjustments.  Businesses are looking at reassessing storage and warehousing of supplies and materials; looking at fuel related expenses that can be reduced; cross training opportunities and more.

 Most businesses look first at cuts that effect employees.  The key is to pull the whole employer/employee team together and make them feel like they are part of the team.

Whatever cuts are made with employees, they need to include management as well as the business owner; i.e.; salary cuts should be equal percentage across the board for all.  Also cuts in paid holidays and shorter work weeks should be equal for all.

 Some companies are offering temporary lay offs for one to three months for employees.  The advantage is that the employees know they are coming back; they are eligible for temporary unemployment, which means they are not asked to seek new employment by the State Unemployment Office; and it can feel like a paid (by Uncle Sam) vacation.  In the meantime, the company can run smoothly with employees who have been cross trained to do each other’s jobs.

 Training:

With 30 years of training and development under my belt, it always amazes me that when times are tough, training is the baby that is first thrown out with the bathwater!  However, the costs of training are very small compared to the benefits of the results of training efforts.

As mentioned above, there are multiple opportunities for savings by cross training employees to do each other’s jobs.  Increased proficiencies can be attained in management as well as operations through effective training.

Let’s consider sales training.  Have you considered that every single employee from your receptionist to your janitor represents your company?  The question is, “How well do they represent you?”  Whenever two or more people get together, a sale is being made. You want to be sure the sale is being made with the optimum to your bottom line!

How well is your company being sold?  Sales are tightly interwoven with customer service.  How well do your customers rate your product and your service?  Your employees that touch your customers directly have great impact.  They have only one chance to make a good impression!

The best news is there are a number of states that offer Work Force Training (WTF) grants where up to 50% of the costs are covered by the state.  SPIA is a Certified Training Organization by a number of these states. We offer a plethora of training opportunities to help businesses operate more productively and more profitably.

• Sales Management and Sales Training
• Training and Coaching
• Customer Service Leadership
• Quality Improvement
• Marketing for Entrepreneurs
• Executive Leadership
• Entrepreneurial Leadership
• RAC Attributes

Business Development:

Let’s look first at the market share of business development.  In a normal year a business will lose up to 10% of an established clientele due to lack of loyalty, price, market changes, etc.  In a slack economy this figure can double!  What have you done to win these clients back, let alone to find new ones?

Have you taken a close look to see how you “stack up” vs your competitors?

• What business are you in?
• What problems do you solve for your customers?
• What do you sell?
• Who buys your products?
• Who is your competitor?
• What does your competitor sell?
• What are your strengths vs your competitor?
• What are your weaknesses vs your competitor?

Market intelligence is critical to the success (or failure) of any business whether times are tough or times are golden.  Doing a simple SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) needs to be accomplished before you can even begin your strategies.

Thorough market intelligence identifies how your company stands up against the competition in areas of:

.           Image & Reputation (how you are perceived by customers)

–      .     Sales and Service

–      .     Sales after Service

–      .     Service after Sale

–      .     Market Share (Distribution and Channel)

–      -     Market Opportunities

–      -     Market Technology

–      Product Development

–      Pricing

–      Sales Force

–      Product Availability

–      Advertising and Promotion

Once you are armed with this information, you have what you need to separate yourself from the crowd.  You can identify areas that make you stand out and develop your Unique Sales Proposition (USP).

This type of research also leads you into Business Development Technology. What is the latest technology available to help you grow your business?  Yes, there is a cost to acquire new “techno” equipment, but there are also many government grants available to help the small to mid-size business owner.  Part of market intelligence is finding out what is out there.

Need Help?  This is where SPIA can make the difference!  A few of the things we do to help businesses achieve their goals are listed below:

• We are experienced in developing “Sales Campaigns” that allow you to “touch” your established customers, former customers, and potential new prospects FREE via the internet.  This allows you to “shout” your USP, product information, timely messages, etc. to your customers at a huge savings from your advertising budget.
• We have an expert in Public Relations who can get your name, your face and your message in the “critical” print areas that will most impact your business.
• We are experienced in helping companies identify complete new product lines that marry well with their current business, which allows a whole new customer base and opportunity for increased profits.
• We have the engineering and manufacturing expertise to help streamline operations as well as help set up new facilities for new product lines.

In-House Do More Than Survive – Prosper in Tough Times Management Team:

Once the effective plan is in place, identify a key Management Team Member to track daily results vs plan in every area.  Be prepared to adjust as necessary on a short term basis.  You don’t want to find out a month from now that you should have done something differently last week!

Most businesses have a corporate attorney, accountant and consultant, with whom they feel comfortable.  However, if your business has been flat or declining over the past year or two (or more), maybe you should consider finding someone who can better meet your needs.  Friendship is nice, but it doesn’t carry any weight at the bank!

Our associates include corporate, patent, and H.R. Attorneys, as well as financial experts who are experienced in business turn arounds, acquisitions and mergers.

We are exactly what our name implies, experts at Strategic Planning and Implementation Associates!

Want to know more?  Contact Craig Stimmel @ cstimmel@spiainc.com or call Craig @ (978) 640-0803 to find out more.  There is no obligation!