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Moving Your Business Forward in Tough Times

By Deborah Polydys

A soft economy has a tendency to highlight all the weak points in a company's operating style. When the economy is strong, projects surface, sales close and money flows through the company. Whether or not it's enough money is another topic -- another article.

Those of us who are business owners and entrepreneurs have a tendency to wing it when it comes to running our businesses. We're great multi-taskers; we know how to keep multiple balls in the air, and we can make things happen. This is the strength of the entrepreneur - it is also his or her Achilles Heel. This tendency to run our businesses by the "challenge of the day" actually impedes the true progress of our business and prevents us from building a business with the foundation to soar in good times and maintain in bad times. We may sense the bumpy ride under the hectic pace we keep, but we often refuse to acknowledge it. But this bumpy ride becomes immediately apparent when the economy softens, sales slow, clients cut back and cash flow recedes.

The first reaction among most business owners is to retreat. We stop selling and stop marketing. We hunker down and try to figure out how to have just enough cash to make it through. Wrong response! All this will do is effectively keep us in a panic mode, decrease sales and often become a self-fulfilling prophecy for the continuing decline of the business.

One thing to remember is this. No matter what is going on in the economy -- someone is always making money. So why can't it be you or me? It can. The key is -- we have to change the way we operate our businesses. What do most of us do wrong?

We run the business without a well-thought out game plan that defines what we do on a daily basis, and, what our real goals and objectives are (We may have this in our head. But we don't put it down on paper, define it or communicate it to anyone else).

We don't know why we make money when we make it, or, why we don't, when the money stops coming in.

We don't know very much about our clients, such as what kind of business they're in, why they buy from us or how they benefit from what they buy.

Those companies that persevere (and survive) are those with a well-defined game plan. They know what business they're in, why companies buy from them, who their target market is and how to serve that market. In other words, they have a plan. And they work that plan consistently. So even when they hit a roadblock - they don't panic because they have a plan, and they know how to work through it.

One of the first things to do when faced with a soft economy is to ramp up marketing and sales efforts (the thing most of us cut back on). However, the key is not to do this indiscriminately. Going out and selling all day is not going to help your business if you don't have a game plan that truly defines your target market and why they want your products and services. The first reaction, at times like these is, "I don't have time to plan." But you can't afford not to plan. Think about this. Cash flow is slowing down. Prospects are taking longer to make purchasing decisions. If you spend time, energy and money chasing the wrong prospects -- you have just made a very expensive mistake, and you may be repeating the same mistake over and over again.

Establishing a well-defined game plan will get your business out of that negative cycle and back on the path to profitability. I know this may sound simplistic - but it works. I've seen the difference over and over again between those companies who do it and those who don't. The game plan will take your business through good times and bad. It will take you from running a business whose cash flow (if projected on paper) would look like an ongoing scenario of mountains and valleys to one that generates a line that steadily and continuously moves upward!

So how do you get started?

Make the commitment.
Make the time
Be ready to challenge some current perceptions
Admit to what you don't know
Inwardly commit to sticking to and working the plan. (This is the most important part of the process and what most people don't do!)

Once you begin, the process will actually be very exciting. You'll realize, for the first time in your business, you are going to have a game plan -- a roadmap to follow -- that keeps your focus on what you need to do. This does not have to take a great deal of time, nor does it have to be lengthy to be effective. What you need to address is the following:

What services/product do I provide?
Why do people want this/what is the benefit?
Who is most likely to buy from me and can afford to buy? This defines your target market.
How am I going to reach them (this is your sales plan)?
How will I serve clients once I get them?
What resources do I need to do this (employees or outsource).

Then, most importantly, work the plan! Your key focus at this point should be your sales effort. This needs to happen consistently, every week. This is usually the weakest link in the plan because many business owners avoid sales (unless this is the one thing you really like to do). Remember, without sales, your business cannot survive. Define exactly what you will do -- each day, each week -- to bring clients in. And do it! What will make the difference is consistently working your plan and focusing on the sales effort, every week.

It doesn't matter if you've been in business for one year or ten years, the important thing is to get started and get your plan in place. You'll find your business will look very different and be far more profitable!

Women in Business Conference: July 14, 2001, is the third Successful Women in Business Conference, sponsored by the U.S. Small Business Administration. The conference will be held at Quinnipiac College from 8:00 a.m. to 4:30 p.m. Meet other business owners; compare business plans; refine yours; increase your profitability. Speakers and seminars focus on building your business, finance, leveraging the online world and defining strategies and markets. For information/registration: 203-787-6735

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Deborah Polydys of Strategic Management Resources LLC has been working with women business owners for the past 15 years She can be reached at debsmr@snet.snet.