Jacobs Journal: A business owner's guide
1 Aug, 2008 By: Daniel G. Jacobs Landscape ManagementDon't panic.
Those are the reassuring words printed on the Hitchhiker's Guide to the Galaxy, the fictional tome available to intergalactic travelers in Douglas Adams' cult science fiction classic series, the first of which shares the same name.
 Daniel G. Jacobs |
It's advice all of us should heed, given the current economic climate. Costs are up and competition is increasing. What we don't know is how deep this downturn will be or how long it will last.
And while those may be two important factors to contemplate as you maneuver your way through these troubled times, you have no control over them.
That doesn't mean, of course, that there is nothing you can do ease their impact. I recently attended a seminar on "Managing Your Business in a Down Economy," hosted by Husqvarna and conducted by Bruce Wilson and Tom Oyler of the Wilson-Oyler Group. At the top of the first PowerPoint slide was a question on everyone's mind: How will the economy affect me?
That's a question you should ask yourself in good times as well as bad, Wilson says. And the answer depends on a great many factors, some of which I'll write about here and others you'll read about over the next couple of months in LM.
Besides asking yourself that question on a regular basis, Wilson suggests you be proactive. That translates into you having a plan and knowing your options. Sitting hunkered down in your bunker running standard operating procedure is not an option — at least not one you should implement if you plan on coming through the other side healthier and in a better position than your competitors.
Difficult economic times have a way of magnifying and multiplying company traits. Weak competitors will falter, and some will fail. Strong companies become stronger. Your actions over the next few months may decide which category you fall into.
Here are some suggestions from Wilson-Oyler:
1. Take stock of where you are today. What is the state of your financial health? What is your cash flow, working capital turnover, balance sheet, receivables and backlog, to name a few?
2. Consider your company's business position. Look at your market segment balance, sales outlook, staffing, customer stability, market competition, operational efficiency and what your competition is doing. It's from these assessments you build your plan.
3. Don't wing it. This applies to just about every situation. Do your homework, make a plan and execute it decisively.
4. Don't cut your sales effort short. In fact, pour it on. Stay externally focused and concentrate on your core strengths and key market opportunities during these tough times.
5. Don't panic. (That one's from me.)
Contact Dan at 216/706-3754 or e-mail at
djacobs@questex.com
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