5 Strategies to Successfully Deal with the Downturn Economy

Posted on | April 22, 2009 | No Comments

Joan Jakel

by Joan Jakel of AZ Business Resource. Follow her at @joanjakel

While many people and businesses are struggling right now, I want to encourage each of you, CHALLENGE each of you, to be confident and bold and get out of your comfort zone as you look at strategic alternatives for your life and your business.  It’s easy to get sucked into the challenges and focus on the all of the problems – but this doesn’t help fix them. 

And it’s incredibly challenging to fix the problems while sitting in the same environment in which the problems exist.  MOVE IT! Get out of your office and find a place that inspires you.  If you need assistance, find a strategic, trusted assistant – another business owner, a coach, a mentor, an advisor, someone who can help you brainstorm and get your creative juices flowing.  Start making a difference by employing the following practices:

1.    Focus on your employee team. Don’t automatically lay off large numbers of employees when times get tough. Remember that a sports team doesn’t downsize to less players when the game turns against them. The best teams dig in, and everyone works harder to make success happen. Instead of layoffs, consider pay cuts, reduced hours, and revised incentive pay plans.  Align employee goals with the company goals by using creative compensation programs, so you can retain skilled employees for a quick start in the next upturn.  Companies that cripple themselves by cutting into muscle will be slow out of the blocks when the new cycle begins.

2.    Keep the lines of communication open. Nothing is worse than keeping employees, customers, suppliers and investors guessing about the company’s plans and actions during a time of uncertainty. Communicate good news, bad news, plans, changes in plans, reasons for plans/actions, successes, failures, etc. Deal with reality. Credibility has a lasting impact that will serve you well as you rebound.

3.    Remember the people side of the business. Recognize that a down economy takes a toll on the psyche, and make an effort to retain a positive attitude. Realize that no downturn lasts forever, and that most fears are never realized. And help your employee team recognize the same realities. Don’t hide in your office – walk around and talk with your workers. Make them true members of your team, keep them informed, solicit their best ideas, and help them see the light at the end of the tunnel.

4.    Quality and customer support. Companies with a reputation for having quality products and services always come to mind first when a buying decision is being made. It is always good business to maintain a strong and comprehensive focus on quality and customer service. In challenging times, it is vitally important.

5.    Reach out to others and reaffirm existing relationships. Even in the most difficult of periods, core marketing and relationship maintenance are essential to business recovery. Do not curtail sales and marketing expenditures. Your competitors most likely will do so, giving you an opportunity to increase market share when others are losing theirs.

For more helpful tips, check out http://www.azbusinessresource.com/resources/strategic-tips

Joan Jakel-Smith, Business Attorney

Comments