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Column: Creative Solutions
Riding Out The Storm
Let’s face it. No business is entirely recession-proof. But riding out the storm may simply be a matter of thinking more imaginatively, reaching out more frequently, and planning more definitively.
Many of America’s most “enterprising entrepreneurs” didn’t wait for the storm to pass before finding success. Thomas Edison had a “bright” idea and launched his business in the middle of the Panic of 1873; it’s now known as General Electric. During the slump that followed, Herman Hollerith founded the Tabulating Machine Company, later renamed IBM. In 1908, William Durant and Charles Stewart Mott founded General Motors and drove away from another financial crash. Walt and Roy, in 1929, the middle of the Great Depression, found a mouse trap for profit and incorporated Walt Disney Productions.
As the Great Depression wound down, and with a measly $500, Hewlett-Packard was born. When inflation soared in 1953, Burger King flipped their way to charcoal broiled success. And in the mid-seventies, as America was mired in stagflation, two computer giants, Bill Gates and Steve Jobs founded, well, you know. And the list goes on: Hyatt, IHOP, FedEx, CNN, MTV, Sports Illustrated, and a little convenience store named Pronto (now Trader Joe’s) all bucked the trend and proved that entrepreneurship is truly the spark that ignites American business.
So, whether you are feeling pressure from this uncertain economy or you’re just looking to get a step ahead of the turmoil, here are some useful suggestions for moving your business forward.
Many of America’s most “enterprising entrepreneurs” didn’t wait for the storm to pass before finding success. Thomas Edison had a “bright” idea and launched his business in the middle of the Panic of 1873; it’s now known as General Electric. During the slump that followed, Herman Hollerith founded the Tabulating Machine Company, later renamed IBM. In 1908, William Durant and Charles Stewart Mott founded General Motors and drove away from another financial crash. Walt and Roy, in 1929, the middle of the Great Depression, found a mouse trap for profit and incorporated Walt Disney Productions.
As the Great Depression wound down, and with a measly $500, Hewlett-Packard was born. When inflation soared in 1953, Burger King flipped their way to charcoal broiled success. And in the mid-seventies, as America was mired in stagflation, two computer giants, Bill Gates and Steve Jobs founded, well, you know. And the list goes on: Hyatt, IHOP, FedEx, CNN, MTV, Sports Illustrated, and a little convenience store named Pronto (now Trader Joe’s) all bucked the trend and proved that entrepreneurship is truly the spark that ignites American business.
So, whether you are feeling pressure from this uncertain economy or you’re just looking to get a step ahead of the turmoil, here are some useful suggestions for moving your business forward.
Become a “Turnaround Specialist”
Provide firm but sensitive leadership. Keep your eye focused on the future by creating a solid vision and staying positive. Create a plan and move swiftly to put it into action. Make sure your staff is involved and energized—they might even have an idea or two. Listen to your employees; it helps create teamwork and teamwork creates job satisfaction and business success.
Focus on Your Core Business
Know where you stand with your cash flow. Take small, achievable steps each day. See how many budget areas you can cut by just 10%. Cut back on purchases and negotiate more favorable payment terms with your vendors.
Find New Sources of Revenue
Creating multiple revenue streams is a smart growth strategy. If one source of income recedes, another just might pick up the slack and keep the cash flow moving. As additional services and products are added to your list of offerings, additional opportunities for repeat business are created. Selling your own product selling new services, or selling affiliate products are all ways to diversify your income.
Create a Notable Presence
Businesses fail because of a lack of customers, not a lack of money. Make sure everyone — the receptionist, the staff, the faculty, and the management — focuses on customer satisfaction. Request referrals from existing customers, host an open house to meet potential customers, attend events and meetings to make new contacts, and establish yourself as a resource by speaking or writing. Remember, people do business with people, not companies!
Provide firm but sensitive leadership. Keep your eye focused on the future by creating a solid vision and staying positive. Create a plan and move swiftly to put it into action. Make sure your staff is involved and energized—they might even have an idea or two. Listen to your employees; it helps create teamwork and teamwork creates job satisfaction and business success.
Focus on Your Core Business
Know where you stand with your cash flow. Take small, achievable steps each day. See how many budget areas you can cut by just 10%. Cut back on purchases and negotiate more favorable payment terms with your vendors.
Find New Sources of Revenue
Creating multiple revenue streams is a smart growth strategy. If one source of income recedes, another just might pick up the slack and keep the cash flow moving. As additional services and products are added to your list of offerings, additional opportunities for repeat business are created. Selling your own product selling new services, or selling affiliate products are all ways to diversify your income.
Create a Notable Presence
Businesses fail because of a lack of customers, not a lack of money. Make sure everyone — the receptionist, the staff, the faculty, and the management — focuses on customer satisfaction. Request referrals from existing customers, host an open house to meet potential customers, attend events and meetings to make new contacts, and establish yourself as a resource by speaking or writing. Remember, people do business with people, not companies!
Make it Easier for Your Customer
Customers want simplicity, service, and performance. Remove barriers, offer flexible payment methods, and find innovative ways to help your customers afford your services. In short, give your customers a reason to come back. And don’t forget to fortify relationships with your referral sources. Every time someone refers a customer to you, thank them immediately with a hand-written note or a quick email. And while you’re at it, make sure you please your current customers by augmenting your programs with a few “value added” services or products.
Take a Look at What Others See…
Make sure that your unique selling proposition is clear and concise. Take inventory of your strengths and resources, tidy up that sloppy web site, throw away your old and ineffective brochures, create a memorable business card, ensure that your logo and artwork are professional and appealing, and make sure you have a clearly worded value proposition.
At the End of the Day…
All we really do is work with and for people. Sure, we write stuff, we create curriculum, we sell books, we teach. But what we really do is create solutions and enhance futures for students and families. The better we are at providing clear, consistent communication to our customers, the more successful our businesses will be. Whether you are experiencing trouble in this uncertain economy or you’re just looking to move your business a step ahead of the turmoil, grab your “entrepreneurial surfboard” and ride the storm!
Customers want simplicity, service, and performance. Remove barriers, offer flexible payment methods, and find innovative ways to help your customers afford your services. In short, give your customers a reason to come back. And don’t forget to fortify relationships with your referral sources. Every time someone refers a customer to you, thank them immediately with a hand-written note or a quick email. And while you’re at it, make sure you please your current customers by augmenting your programs with a few “value added” services or products.
Take a Look at What Others See…
Make sure that your unique selling proposition is clear and concise. Take inventory of your strengths and resources, tidy up that sloppy web site, throw away your old and ineffective brochures, create a memorable business card, ensure that your logo and artwork are professional and appealing, and make sure you have a clearly worded value proposition.
At the End of the Day…
All we really do is work with and for people. Sure, we write stuff, we create curriculum, we sell books, we teach. But what we really do is create solutions and enhance futures for students and families. The better we are at providing clear, consistent communication to our customers, the more successful our businesses will be. Whether you are experiencing trouble in this uncertain economy or you’re just looking to move your business a step ahead of the turmoil, grab your “entrepreneurial surfboard” and ride the storm!