I found and read a wonderful article in a magazine entitled “Survival Lessons from the Great Dot-com Disaster”. Even though years have passed, the lessons still apply; they just might need a little tweaking to make the leap through time.
1. Become aggressive about new business acquisitions. In the movie “It’s a Wonderful Life”, there is a scene in which Jimmy Stewart, as he is leaving town on his wedding day, is forced back into the family savings and loan office because there is a great panic, and a mob of customers are trying to get their money out of the bank before it closes.
Jimmy Stewart then explains to the crowd of frightened customers, “Don’t you see, Potter (his competition) isn’t selling. He’s buying. Now if we will all calm down, we can make sense of all this.”
And so it is with business today. We need to be growing through acquisition, and not simply selling because we fear what the future holds. If you have been successful in acquisitions thus far, you will be even more successful in the long run.
Look around and see what businesses are for sale. Look around and consider other marketing avenues for your company. Can you expand your base of business within your current customer list? Can you expand geographically? Can you add new products or services?
2. Build stronger ties to your customers. In times of slow down and crisis, your customers need to hear from you more frequently. They need to know that you are there for them and that you are still in business. They need to know that you are ready, willing and able to sell, ship and deliver your products.
If you do not already use a customer management system, you need to invest in one. Visit a store today and purchase a system that will help you stay in touch with your customers.
3. Emphasize creativity and innovation. Your clients need to know that you are thinking out of the box when it comes to taking care of their needs. Additionally, your suppliers need to be innovators who present ideas to you. Finally, you need to make sure that your employees are creative thinkers as well.
You set the tone for the company. If you are unwilling or unable to think creatively, it is likely that you are stifling your staff, and your clients are not receiving one of the key intangibles that should originate from within your organization.
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In the world of business, innovation doesn’t require drastic changes. In fact, innovation can be worthwhile to a customer by simply taking an existing product or service and improving it by a mere five percent.
This step involves taking time to simply think. We tend to get so caught up in what we are doing right now that we just don’t take time to think. Being in a quiet place sometimes enhances creativity, but creativity is also enhanced by being in a venue of creativity—a museum, at the ballet, or at the symphony.
Whatever your personal choice, you need to devote time to think about creativity and innovation for your business. It is an investment each of us should make on a regular basis.
4. Increase cost-effectiveness across the board. Take the time to map the processes that define your business. Start with the most common, tracing them from start to finish. When reviewing these processes, you are likely to find extra steps and/or duplication of effort.
Take time to meet with your suppliers to see if you are getting the best deal from them. Remember that getting the best deal does not always include receiving the lowest price. When making a business decision, be certain to take into account all factors, including: time, cost, convenience, timely delivery, terms of sale and quality.
Make sure that your people are doing what they are supposed to be doing. Take a minute to determine what productivity level you expect on a daily basis. Start eliminating distractions that keep people from doing their jobs. (A good example would be too many meetings). Make sure that they have the tools they need to do the work they have been assigned.
5. Redefine what your business is. Now is the time to determine what business you are really in, by considering the long-term view. For example, railroads were once in the transportation business, but now, with the exception of Amtrak, they are in the freight business.
In the early 1980’s, United Airlines determined that they were in the travel business. They bought hotel chains (Westin), car rental companies, and the like. But that strategy needed to change, and the company is now in the air travel business. They sold off the hotels and rental car companies to focus on what they did best. (Some might argue that they still don’t do this all that well anymore but that is another article to be written).
6. Revitalize your organization’s vision. Distractions abound. Without a vision, you will never accomplish the goals set for your business. Businesses that grow and are successful have a vision.
Now is an excellent time to revisit your organization’s vision. What is your destination? Have you made progress towards it this year? How much progress will you be making in the next year? Does your vision reflect reality? Is it full of vigor, direction, and focus? Can anyone who works for you state what your vision statement is? Can you state your vision statement?
7. Make building your cash reserves a priority. The airline business is a tough industry. There is one airline, though, which is likely to grow and prosper. Because they have focused on building and maintaining strong cash reserves, Southwest Airlines is the only airline to successfully make a profit each year.
Given the slow down in the economy, every business owner needs to review all company expenses in order to determine what expenditures are essential and which ones are not. In times of an economic downturn, one must be ruthless when taking a red pen to the list of expenses that need to be reduced or eliminated.
In conclusion, make sure you take a look at these lessons either in the quiet of the early morning or the still of the evening, and see how many you can put to use to better your business. I suspect that you will be able to incorporate most of them into your business.
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