November 2008

TAKE ADVANTAGE OF A DOWN MARKET
MOVE TO THE NEXT LEVEL

Why is it that some business owners succeed in poor economies while others fall behind, and even go out of business? The answer is ATTITUDE & PREPARATION. Attitude says that "Whatever you vividly imagine, ardently desire, and enthusiastically act upon must inevitably come to pass." Preparation says that "Success is the fork in the road where preparation and opportunity meet." You have heard these in the past. In fact I have used them in past newsletters.

So, how can we take advantage of a down market and end up way ahead of the pack? Below are a few thoughts. The few listed may trigger more ideas and that is the purpose of the list. Remember, thinking about them is good but acting on them is far better, in fact required if success is the goal.

Hard Times Always Thins Out The Competition. The weakest will not survive. Now is the time to grow the businesses and your market share.

Take Control Of Finances. Know and understand the condition of your financial health at all times. Develop and maintain a strong balance sheet, Pay down debt. Use cash for purchases if at all possible. Take full advantage of discounts and credit terms. Keep on top of receivables. Chase them down and collect them.

Cash Is King, particularly in tough times. It puts you in a position to take full advantage of buying opportunities. These are great times to purchase new (used) production equipment, facilities, or even distressed competitors.

Control expenses. Evaluate where money is being spent and what you are getting out of that expenditure. This doesn't mean eliminate all spending. It means spend wisely.

Delegate & Surround Yourself With Experts. We are all better at some things than others or we have a passion for some and not others. Focus on what you are good at and really like to do. It is so easy, particularly during difficult times, to get rid of everybody and try to do it all ourselves. nfortunately, all too often, it becomes a downward spiral that costs us our business.

Write & Implement A Business Plan. Leaving the future up to chance or guess work will put us out of business. The plan should take into account, both current market conditions and the good times that are ahead, with plans in place to be able to move quickly when they come (and they will).

Reward Customer Loyalty. Regular customers are our lifeblood. Don't let them get away.

Differentiate Your Businesses From The Competition. Be different from the rest. Give customers a reason to want you and you alone.

Communicate, Communicate, And Communicate Some More! Don't let them forget who you are.

Market, Market, Market. Be out in the marketplace seeking new business always. Sitting in the office waiting for the phone to ring is highly overrated. Determine what is needed to develop new clients and do it.

Know The Needs Of Your Current Customers & Respond To Them.They believe in you. Don't let them get away. Evaluate your product and/or service offering. Are you meeting those needs? Modify your offering to meet those needs.

Develop a market segmentation philosophy. Avoid blanket price cutting.

Focus On Your Products & Services. Look at ways to increase productivity and reduce costs. Evaluate your core strengths and how to use them in new ways (diversify). Fill up your plant, office, or schedule with products & services that people want and need, even if it is not at the optimum profit. Provide products/services that people want and need even if it means modifying or totally changing your product offering.