Three tips to survive in a turbulent economy
I recently gave a talk titled, “Thriving in a turbulent economy.” After the talk, one of the audience members approached me and told me that he didn’t think I delivered on the title. He said, “All you did was tell us to go back to the basics of business.”
He was right! When times are good, we all tend to slip into the habit of not doing all the things we know we should be doing. Here’s three strategies to get you through any economic conditions.
There are volumes of statistics about how companies with a business plan do so much better than companies without a plan. Let’s not go any further on that. Put all the excuses aside, determine your goals and put together an action plan.
You need a strategy and a vision. I’m not talking about a “Mission Statement” you put in the lobby that sounds like every other Mission Statement in every other lobby. I mean knowing where you want the company to be in the future, why that’s important and how you’re going to get there. Then outline what you need to do to be successful. Let’s concentrate on three areas that make a big difference.
Research
In (another) recent presentation, to a contracting industry trade association, I mentioned that research is important to long-term success. Saeed Daniali, the head of the Construction Management Department at the University of Washington, later told me how important he feels research is. He told me he constantly impresses this on the students and “preaches” this to the business owners (in the association).
Today, it is easier than ever to conduct quality research. The Internet, the libraries, trade associations, commercial databases and good old fashion snooping are easier than ever. Large stores hire mystery shoppers to monitor their competition and their employees. You can do the same.
For those you who object and say “I make spur-of-the-moment decisions,” you really don’t. You have already mentally processed the information based on your experience. Doing research means you have all the relevant information available to process.
If you fish, or know a good fisherman, you know they pay attention to the little things. You don’t go salmon fishing in the ocean with a small hook, four pound test line and a worm. Good fishermen have the right equipment, know when to go and where to go.
I often ask audiences, “What’s worse than having a capacity for 1,000,000 units and only selling 250,000 (besides having capacity for 2,000,000)?” It’s having a capacity for 250,000 and selling 1,000,000. When you don’t deliver as your customers expect, it will be tough to earn back their respect and business.
A very important detail is to have your production and marketing in-sync. When there’s balance you have efficiency. When sales exceed capacity, overtime drives down the margins. When capacity exceeds sales, there are higher fixed and variable costs.
Think about when you go to a concert, play or sporting event. The musicians, actors and athletes practice all the little things to make sure the big event is successful. Get your details to the level that brings success and then work on another one (this means master it, don’t necessarily perfect it).
Motivational speakers encourage their audiences to take charge and make things happen. This doesn’t mean blindly forging ahead at full speed in hope of running into success. It means knowing where you want to go, how you’re to get there, doing your homework and paying attention to the little things so you’re the one in control. Call it fate, karma or whatever you want, but it seems that people who take action are luckier than those who wait for the action to find them.
© Copyright John Martinka 2002. All rights reserved.