Don't try and predict the bottom focus on recovery
John R. Daley, MIB
Business leaders should not be trying to identify the bottom. NOW is the time to prepare for recovery! Allow me to build my case.
Running a business is like preparing a team for the Olympics. We have just finished our last Olympics and the next one is coming. We are spent in some cases, some are looking back at what could have been and some are worried about how they are going to recover by the next Olympics.
These last few months have been life changing for most of us. Consequently your stake holders (customers, employees, vendors and investors) values, needs and desires have changed. Is your company ready to serve the new needs, desires and values of all your stake holders? Do you know what those new needs, desires and values even are? Keep in mind; I’m not sure they have stopped evolving.
There are two general groups of companies. One group is cutting people, costs including sales expenses and hoping to survive the storm. The owners are stressed and holed up in their office. The second group is repositioning and analyzing how their market is evolving. They are looking for new markets to consider. These future winners are out talking to customers, keeping themselves and their team up beat, optimistic and focused on the recovery that is coming. They are taking talent and market share from the first group who probably won’t know till it’s too late. It’s not too late to join the latter group.
We are looking for a recovery in about 9 to 18 months. There is a significant amount of liquidity on the sidelines right now both, with investors and in companies. When people decide that the recovery is real, a significant percentage of that sidelined liquidity will surge back into the market as investments and growth projects. If you wait to start preparing for the recovery until the recovery is in place, which would be like deciding to prepare for the Olympics on opening day. You will get run over.
Next year’s success stories are repositioning their team for a new season now. They know this repositioning will take time and now is the perfect time to start. Teams preparing for the Olympics spend two years or more deciding on the right place to compete, team make up, sourcing the talent and then training.
Analyze your market now. Look at alternative markets that your skills and capacity might serve profitably. Do this by using the “walking around” method. Call and visit current and potential customers. Ask them how their goals and challenges are changing. Be upbeat and a great listener. This will provide you the information you need to reevaluate your offerings and how they will be valued. Do you need to adjust your resources to provide the new solutions the markets are looking for?
There is talent available. Top talent is worried that they will be unemployed soon if the company can’t hold together. Bad managers are losing or discarding good people. Weak companies are discarding good people. Build your best team now!
There is equipment available. Some companies are not going to make it. That’s called reallocation of resources, so they are more efficiently used for higher value. This has kept our economy one of the best in the world. There is equipment available and motivated sellers.
We believe we have 9 to 18 months before we have a full blown recovery. That gives you time to reposition your company and be in competition form about the right time if you start Now!
The Daley Institute and our co sponsors are hosting Business Growth Round Tables for the next 9 to 18 months. The complete focus of the Round Tables will be identifying challenges of business leader attendees and working with each other to identify best practices. Sponsors have all agreed there will be no sales pitches or presentations, these round tables are totally about brainstorming to help our business community be the best prepared for the next growth cycle. There is no cost for these events at this time. Our first Business Round Table was December 4th sponsored by Southwest Bank. We had 15 business owners participate and they gave it rave review. These business owners shared great best practices. Our next Business Round Table is December 17th, 2008 and our cosponsor is National City Bank. We have a few spots left. We will announce the January Business Round Tables soon.
If you would like to cosponsor a roundtable for your community and or participate please email Sbodine@daleyinstitute.com or call 636-527-7627 and ask for Shawn Bodine.
