The Uncertainties How quickly our focus has changed from terrorism, to the presidential election, to the economy. Are we in a recession or a depression? Will it be short term or long term? Have we reached the bottom, or is there more to come? And how do we identify the bottom? The experts say it is impossible to know. Only when we can look back into history will we know where the bottom was.
History also tells us no society or nation is invulnerable to chasms which can affect its very existence. The United States of America is arguably the greatest nation in the history of mankind, yet has faltered from time to time – and this is one of those times. In business, when there is a mistake in producing a product or providing a service, the prudent approach is to analyze the error methodically. One form of resolution is a method called Root Cause Analysis. The process works by analyzing the problem systematically, identifying potential root causes (there is usually more than one), fixing the process (corrective action) and enforcing a (written) procedure (preventive action).
Our Economy is Broken
Many economists believe that the basis for our current crisis lies in the established banking and lending system which controls the economic engine of domestic and international economies. Here is where we can implement Root Cause Analysis. The extension of credit to those who by no means qualify or have the ability to pay back loans has run amuck and is certainly one cause. The effects of this behavior have been foreclosures, bankruptcies, plant closings and millions losing their jobs. This needs to change, and hopefully new regulations implemented and enforced by government will help prevent future crises and initiate a more disciplined approach by the lending community.
Without a doubt, much of the reaction in the business world is out of fear or extreme precaution. Nevertheless, it is only prudent that business owners take proactive measures to insure the viability of their businesses. Banks are being scrutinized, and they in turn will be watching their customers’ performance.
The Need to Take Action
If you haven’t already, those of us in small business need to take action and every action should be scrutinized and measured carefully. People are the engine of any successful business. Therefore, protect your best employees by taking measures that protect the business as a whole, i.e. selling off underutilized equipment, re-evaluating all employees’ performance and taking action on those who consistently underperform. Scrutinize every line item purchase, and explore the idea of reducing your vendor base to gain volume discounts and offer the same to your best customers. After all, you need to walk the talk and protect customer relationships.
Cost cutting measures are only one aspect of protecting your business; right sizing works, but must be comprehensive. Be careful not to cut marketing recklessly. Cutting waste is critical, but cutting marketing can be fateful. Any business needs to continue to brand itself and target potential customers and emerging industries that will drive growth and profits. This may be one of those unique opportunities to define your company and gain an advantage over competitors. Consider starting with a customer survey, and then market your company efficiently by targeting clients that have the highest potential to do business with you. Particularly effective is 1:1 marketing that is personalized and tells a specific message. Target decision makers such as CEO’s, Chief Marketing Officers and VP’s of Marketing. Make sure to measure the results. This can be done via a personalized landing page or personal URL along with integrated campaign management tools.
The Specifics
At Cedar Graphics, we have actually increased our marketing efforts. Here are a few specifics of what we are doing to increase brand awareness:
• Redesigned our web site
• Hired a full time marketing and communications director
• Social networking via YouTube, Face Book, Twitter, LinkedIn, etc.
• Increased 1:1 marketing campaigns using PURLs with campaign management/CRM
• Customer survey
• Key employee survey
• This blog
I hope these thoughts help you navigate through these particularly tough times. I would like to hear your ideas and share them with whoever sees fit to read this blog.
Best to all of you,
Hassan
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