In the world of sports, the term "game changer" happens with a great play or when a key player gets hurt. Game changer products or services could include the likes of Apple's I-Phone, the Internet or social media sights Twitter and Facebook. There is no doubt these are game changers in their respective areas.
In business, there is rarely a game changer. But for the first time in your business career, you are living through a period of time that will be remembered as a game changer. In the midst of a deep recession including bursting bubbles, evaporating retirement funds and rising foreclosures, what was once solid ground has turned into a field of quick sand.
For decades, businesses have experienced sustained growth, focusing on meeting sales demands, adding products and divisions, hiring top employees, and raising wages and benefits to keep a stable work force. Customers lined up to it purchase products and services. The business pace was fast with little scrutiny of the outcome.
In just a short time period, many business enterprises are now under attack and are fighting to survive. For some businesses, this economic re-shuffling will create opportunity. Companies with strong balance sheets, the ability to reduce operating costs, and capital to pour into the business if needed, will survive and thrive when the economy recovers. These businesses will be challenged because they are accustomed to making profit, but they can sustain an operational choice of doing work for little to no profit in the short run for the specific purpose of gaining market share.
Businesses who want to succeed will need a game plan:
Long-term strategy – This strategy needs to represent the big picture for your company and the industry you serve. It should encompass the next five to ten years. Too many business owners think that long-term is 12 months and only plan "what to do to get by." This results in survival thinking rather than planning to succeed.
Customer base – The cycle of business means that many of your customers will retire or close their businesses. You need to be adding new, growing customers that have a future. Have goals to sell to the best in your customer base and take good care of them. Many new companies will be formed during this period. You need to select the ones that will grow and still be in business down the road. In order to keep and attract great customers, you must have services and products that meet their needs.
Products or services - Customers are changing, demands are different, and the products you sold yesterday may be going the way of the pay-phone, virtually gone except in rare instances. You need to talk with your customers about your products and be prepared to make changes to improve your offering. Success in times like these goes to the business enterprise that can adapt and make small changes that match customer demand. The development of the personal computer was a game changer. It is hard to imagine life without computers, but what really made computers take off was the spreadsheet. Long before Lotus and Microsoft Excel, the first commercial spreadsheet program was VisiCalc. Bill Gates is well known for his Microsoft success, but he was not the first to offer a winning product.
The unexpected – A business must be prepared for a reliable vendor, customer, or supplier terminating a business relationship. No one can predict the unexpected but you still need to be prepared to act. This is not impulsive action but well thought out action with a plan that allows your business to recover and remain successful.
Purposeful decisions – When every business was flush with opportunity, customers, and cash, it was easy to make a decision. Even if the decision did not work as intended, you simply moved forward, chalking this up to experience. Today your decisions will have larger impacts. Before you make a decision to invest or spend $10,000, realize, in today's economy how many dollars of gross sales it takes to make $10,000 free and clear. Many businesses are not making a profit today but if you are, divide your net profit percentage into the $10,000. At 1% net profit, it takes $1,000,000 of sales for you to make your $10,000 investment.
FEAR – Fear is an acronym for False Expectations Appearing Real. The news is full of impending calamities of deflation, inflation, dollar crashing, increasing taxes, and global competition. All of these are possible and some likely. You cannot make business decisions about future events that may happen. You need to be prepared to make your best business decisions when another change occurs. In the mean time, keep going forward.
One of the fears circulating is that the American free enterprise system is broken. While the system is challenged, it will survive. Your business can succeed with the great leadership you provide your company. There are brighter days ahead. This next decade will separate the professionals from the amateurs with good companies tapping into all of their resources, changing and adopting new processes and becoming industry leaders.
Some companies will stay trapped in the past wishing for a different tomorrow. The shaky economics of today's business environment will leave those businesses looking like the aftermath of the Haitian earth quake in Port-a-Prince.
This is not yesterday's game. Your opportunity to take advantage of this game changer is in your grasp. The rules have changed and you will need all of your professional skill and business know-how to maneuver a successful plan for your company.
