Is The Economy Managing Your Business?
9 Key CEO Recession Tips to Successfully Guide Your Business Through the Next 12 Months
We're going into 15 months of recession -- will you make it? Is your business shrinking? Will you be here in 2010?
Here are 9 key CEO recession tips to successfully guide your business through the next 12 months:
1. Make decisions. In a recession, thinking too long about anything . . . is a NO decision. Don't kid yourself -- time lost in a recession is wasted time. The recession is not waiting for you. It's a downhill steamroller, so a key business action step to be successful is to analyze your next steps and then do it.
2. Take action steps with speed. Once you have decided to make changes, move quickly. Time is more than money -- it's your survival.
3. Cut costs. Where? Any overhead that does not directly or indirectly add corporate revenue should be cut. These include items such as company cars, tradeshows, direct mail that fails, after-hour parties, or travel to prospects who are not qualified.
4. Choose new business verticals. Are you selling blue shoes to a red shoe market? Is your current business vertical not buying? Then change. Adapt and become something different. Will your product or service work in a new industry? Do you know? If no, find out quick. Don't go out without a fight. The best business verticals in a recession are Energy, Federal Government, Healthcare, Utilities, and Pharmaceuticals.
5. Develop better marketing. Do you calculate marketing return on investment? Are you doing the same marketing you did last year? STOP! It's a new world order. Don't repeat poor marketing because you need leads. Develop new marketing based on the recession.
6. Improve team productivity. You're in a recession. If you have employees who are not fully engaged and working smart, and they are wasting time, money and office space, remove them. Are you running a business or a country club for the unemployable! This is not a time to pay Ringo (the loyal puppy dog down the hallway), John (the I-am-late-all-of-the-time service rep), George (the I-will-not-cold-call-salesperson because I think I am too senior) and Paul (the son-in-law, the you-owe-me-manager). Employees need to bring value or employers should find someone who will.
7. Generate better financials. Costs are up, revenues are down. Do you know your numbers? If not, then the recession will eat you.
8. Provide sales training. I know your sales team is made up of professionals, but when was the last time your firm actually invested in professional sales skill training for your staff? This is a tough economy to be successful . . . everybody can use new training. Reading one book five years ago is not sales training.
9. Act professional, not entrepreneurial. This is not a time to be emotional about your business. Yes, you have invested untold years of sweat and blood into the business. Stop loving your business, and instead manage your business and make the tough decisions.
Follow these recommendations and you can weather the current economic storm. Ignore them or take too long pondering their value and . . .you might not be here next year.
What worked last year probably won't work this year. It's up to you!