Managing Challenging Times, Poised for Growth
Regrettably, some organizations tend to hunker down in troubling times and hope to wait it out. It is in times like these, however,
that management must not just act, but act swiftly and decisively.
There can be a shiny silver lining of this cloud if you are pre-
pared to look. To help find that lining, consider implementing the
following strategies within your operation.
Cut Costs/Lower Overhead
In tough times it only makes sense to trim overhead. In times
like these, however, it takes a more orchestrated and assertive strategy. A few areas you might consider addressing include:
- Sell or divest non cash-producing assets. Too often we retain equipment, inventory, unnecessary leases and not-so-intellectual-property. It’s time for spring cleaning. Sell or gift a non-profit
the things you can’t use and enjoy the cash or write-off.
- Cut unnecessary non cash-producing services and functions. Great companies provide great service and should more than ever fix on this principle. There may be, however, some services and oper-
ating functions you can do without. Assess your operation and its functions and look for ways to cut the fat and become more efficient.
- Triage your employees and their roles. It’s not unusual to see a lack of productivity and complacency among some staffers. Evaluate each employee’s willingness, attitude and commitment to be productive. Be sure each employee has a supervisor performing their duties with the company’s interest in mind. What may have been the right solution a year ago may not be the right solution today, so address and take appropriate action where necessary. Cancer will metastasize if left untreated.
- Trade up. This point may offend, but it’s important that when employee cuts are necessary or job openings available, diligence is taken to fill the positions with the best candidates most suitable to perform requisite tasks and grow with the firm. Although a buyer’s market has its advantages, be careful to avoid hiring over-qualified candidates—it’s difficult to keep their interest over the long haul.
- If it floats, flies… rent it. There’s a blue-collar proverb that
makes sense to consider when buying equipment or software and engaging services. Evaluate the viability to buy or hire given the overhead factor associated with the purchase. Odds are likely that leasing or engaging a vendor or subcontractor will be the prudent move in a number of cases. Managing overhead is paramount in tougher times. Gone are the days of frivolous spending on planes and other vehicles, even the jazzy cars in your parking lot. Cut the fat.
- Meet your financial obligations. Nothing seals the fate of a business faster than missing payroll, not paying taxes or falling behind on paying vendors. Secure a line of credit and dip into it only when necessary. Credibility is hard earned and easily lost—don’t aggravate the people and the vendors that enable you to run your business—they’re your most valued asset.
Chart Your Plan, Get Organized and Take Action
Too often we occupy our limited time doing tasks others can do better and more efficiently at the expense of not performing our primary responsibilities. Chart your course with a short- and mid-term plan. Short term planning is essential in a tough market. Get organized and focus on making critically important decisions and implementing strategies to sustain.
- Be poised for a roaring comeback. America possesses the most powerful and resilient financial engine in the world and the economy will return sooner than you realize. If your company is complacent during bad times, you’ll be asleep when it’s time to roll. Training your team is most
necessary in times like these so when the fog lifts your organization is firing on all cylinders. Be poised for growth.
- Build market share. In market downturns, poise your organization to gain mar- ket share while competitors reside in a state of paralysis. Never will it be easier and more affordable to build market share than in challenging times. Try it—you’ll be amazed of the advantageous position you’ll find your firm in when the economy rebounds.
- Position your organization’s interest—align with clients, advertise your services. Better-know your clients and prospects with face-to-face meetings and effective communications. It’s said that in good times you should advertise and in bad times you must advertise. Organizations that aren’t reinvesting or positioning for growth are losing gro- und. Dedicate a fair percentage of 5 percent or more to marketing externally—you’ll be amazed how the pipeline not only remains full but flows swiftly upon market recovery. Investing in web sites is expensive and tends not to provide ROI or attract business unless heavily promoted. Be leery when investing in the web unless your interests or ads are positioned effectively and reach your pros-pects. Be careful, too, of allocating funds for PR or any medium that does not connect and compel prospects to buy. It’s prudent to invest in select media and to allocate budgets to vehicles that elevate exposure, attract business, create buzz and provide ROI.
What your organization does to survive challenging times will impact how your business rebounds when good times return. Ingram’s will surely be recognizing those firms that engage in prudent business practices. A challenged economy yields the best opportunity to reassess your business and to create and implement a strategic action plan. 
Joe Sweeney
Editor-In-Chief & Publisher
Sweeney@IngramsOnLine.com