Businesses, battered by the collapse of what many consider normal business markets, are impacted by new challenges. Most owners have worked, and lived, through recessions, inflations, product shortages, Y2K and 9/11, but the current challenges are different.
For sometime, customers, opportunities, credit and an unending ability to bring in business have been plentiful. The two big concerns, finding good workers and paying less in tax, were the only worries. Business owners succeeded. But now, that businesses have grown, have more employees, and the ability and desire to succeed, comes the challenge. In fact, for most, simply maintaining the status quo is not considered success.
Most business owners are frustrated. There simply isn't enough work. With limited opportunity, competition is fierce, but with different rules. Everyone is desperate to secure the next business opportunity, in many cases driving prices down. There is a flurry of sales and coupons to attract potential buyers.
Every business is cutting back, reducing staff, delaying expansion and restructuring to secure their cash position. These are normal first steps a business has to take to secure their future. The next steps will separate successful businesses from ones that vanish.
In times of crisis, a business can make strategic errors that may not be recoverable. Arthur Andersen, a large international accounting firm, evaporated when it took a position of denial in the Enron meltdown. Management took the position of no wrong doing, rather than face alleged misdeeds which would have hurt the company's reputation, cost legal fees and fines and necessitated firing employees. Many experts in the industry believe such actions would have left them wounded, but alive, and in business today. They chose to stick by their position. The company proved its case in the Supreme Court and won, but by then, customers lost confidence and sought other choices. Arthur Andersen, a one time leader in its profession, simply melted away in a matter of months because it stopped asking questions and got stuck in its position.
Many business owners have strategically cut costs as the first step to grow and improve their business. However, more must be done. You can't wait for the economy to recover to lay a plan to succeed.
One thing you can count on is there will be more business challenges ahead. It will be some time before the phrase "business as usual" is relevant. Opportunities are always present, but there is no question that today's opportunities are different, harder to grab and will have different results.
A business professor I follow recently said "never let a crisis go to waste." Take action, develop plans, implement changes and improve processes that were impossible just months ago. Here are some ideas to adopt in the development of your business strategy for success:
1. Emphasize the core values of your business . These are more than words. Your management team needs to know what they are, and if by chance they need updating, now is a good time to implement the change.
2. Annual business planning. Include budgeting and goal setting, and conduct monthly and quarterly reviews. This will help you focus and adapt as needed.
3. Silence isn't profitable . Your business consists of employees, customers, vendors and the business community in which you operate. Your business and management team have a moral obligation to keep everyone informed.
4. Identify and prioritize improvements, and include a plan for implementation. Ideally, management meets weekly for 20 to 30 minutes – a powerful meeting where all participants are focused on improving the business.
5. Be prepared for a crisis . A customer, vendor or supplier can go out of business without warning or notice. Be prepared with Plan B, and you can spare your business economic threats.
6. Take a proactive position to solve problems and challenges. You cannot afford to become paralyzed or let time pass before you act. Positive action by your business is a must.
7. Ask difficult questions and find the best answers. Pursue questions, like peeling back an onion, continually asking "and then what?" Too often, the first answer is accepted, following past actions and never getting to the core of the issue challenging the process.
8. Focus on your core business and do it better than anyone else . There are great businesses that have several different lines, but most businesses can only successfully expand once their core business is successful.
9. Meet regularly with purpose . Have an agenda, keep and circulate minutes or action points and adopt accountability measures. This turns wasteful meetings into opportunities.
10. Improve business processes . For too long, business was done as it has always been done. Get signed orders, down payments, and assure the terms of doing business are clear with your customers. Put in place the business processes that will improve customer delivery.
11. Convey a positive, secure outlook. Emotions of employees, customers, and owners are all running at high levels of anxiety because of the economic crisis. You must be aware of these emotions and convey a confident outlook.
12. Form an action committee or enlist your management team . During the course of this economic adjustment, have a team ready to act. Adopt protocols so your team knows how to act to solve the challenges.
Having witnessed unbelievable government intervention, business leaders hailed as heroes, then turned villains, and failing businesses, it is inevitable that more struggles lie ahead. This crisis will only be over when you see your actions, and newly designed business processes, helping you succeed as a strong business.
