Managing your business in a down economy

By NANCY PROFFITT, Certified Business Coach, Proffitt Management Solutions

The struggling economy has certainly been the focus of most of my coaching conversations of late. Worry over business improvement, growth, sustainability and general business performance expectations have taken over people's mindsets to the point of paralysis of otherwise genius minds. The fears associated with economic slow downs can turn to demotivation and lack of focus on the basics of good business.

While we have no true forecast as to when the economy is going to make that upward turn, history clearly has shown us it will eventually.
What do you do in the meantime? Here are some ideas to help mobilize you back to productive, more sustainable business actions so you are well prepared to survive now and thrive when things turn upward again.

Check your attitude.

 Is fear of the unknown economy paralyzing you? Why? You started a business or a job because you had a passion for what you do or sell, be it a product or a service. The only way that passion and drive can be diminished is if you chose to let it happen.

When the going gets tough, the passionate person gets going.
Attitude is a habit of thought and we alone create our own habits. No one can create a habit for us, thus no one can control the way we choose to think or look at things.

Ever met two people who got laid off from the same company at the same time? One carries on as though the world has come to an end and takes it personally while the other reacts knowing it is what it is and decides to seize the opportunities still available in the world around him or he may even say this could be a real opportunity to do something else they have always wanted to do.

We each have a chose to see this economic slowdown as a huge problem or a huge opportunity. Which person are you?

Get back to the basics

Planning!

Are you waiting for something to change or are you willing to make something change to sustain your business in slower times? Hope is not a strategy for change. Planning is what creates positive change.

When was the last time you looked at your business plan? What changes need to be made to your budgets or your core business? Be prudent in making cuts to your business in the areas of people and expenses. In perceived tumultuous times, people tend to react out of anxiety instead of clear planning. The results can be disastrous as the outcomes often result in stepping over dollars to pick up pennies.

Dust off your current plan and determine if the business plan you originally wrote is still applicable.  Can you run your business now the same way you did in years past in order to survive in times of economic slowdown? This economy requires you to examine the way you do business.

Examine how your business serves the changing needs and wants of your customers

Now is the time to be in touch with your customers as much as possible. Go out and find out what they need. Do not assume you know.

Successful business people understand they do not sell something they have, they provide something the customer wants.

Take this time to reevaluate your core business and determine what hidden assets you may have within your business that could be of value in down times and market that NOW.

Provide unprecedented impeccable service

Service is the number one differentiator in business today. People will go anywhere, including the Internet, to get anything they want today. Now more than ever, service is the emotional commodity that drives business and only stellar service will sustain and grow your business.

Return calls promptly. Refer callers to others when you’re not available. Send out email tips or dedicate a part of your web site specifically to client needs. Make sure it is easy for people to contact you. Always follow up on calls or messages. Always, always, always do what you say you will do.

Make the most efficient use of your time

How much of your time do you work in your business instead of on your business? How much of your time is spent doing “activities” (busy work)  instead of creating business opportunities? At the end of each day calculate the ROI on all you did that day. If what you did with you time did not create an opportunity to make money or have an immediate impact on the positive growth of your business, stop doing it and start working to gain business! There is a huge difference in being busy and being productive. The measurement is your profitability.

What are three areas of focus and corresponding activities that would constitute the best and most valuable use of your time today?

 Market Market Market

Now more than ever people have to see your face, the face of your business, hear your message and recognize the benefits of what you offer.

The businesses that will survive and thrive in this downturn market are those who realize what got them here will not get them there! What worked for your business a year ago probably will not work today —with the exception of stellar service.

Nancy Proffitt, MBA, Certified Business Coach is the president of Proffitt Management Solutions and Proffitt Management Leadership Institute, an internationally recognized Leadership coaching firm dedicated to unleashing the full potential of individuals and organizations. She may be reached at 561-682-6060 or email: Nancy@proffittmanagement.com . Visit her website at www.proffittmanagement.com

Nancy Proffitt's columns on management appear on the first and third Thursday's of each month. Links to previous columns can be found here:

Twenty days to a better organization

Are you managing time or is time managing you

Titles aren't everything

The impact of micromanaging

Changing others by changing yourself.

An exceptional few: Are you part of the 3 percent?