Green Shoot, Or Weed

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Pessimists: So you don’t believe things will turn around, then exit this presentation NOW.

Optimists: don’t forget that things will turn around. If you don’t remember this, you will end up in a worse position when it does come.

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Green Shoot, Or Weed

  1. 1. “Green Shoot, or Weed… EuroServe-Associates 5/3/2009
  2. 2. “How prepared is your business for an economic recovery? Steps taken now can ensure you prosper after the “green shoots” really start appearing.
  3. 3. It will happen 1 Step • Pessimists: So you don’t believe things will turn around, then exit this presentation NOW. • Optimists: don’t forget that things will turn around. If you don’t remember this, you will end up in a worse position when it does come.
  4. 4. Look Outwards 2 Step • The Business environment has altered; global changes even affect “mom” & pop business. • Do not let a focus on your own business prevent you from looking at what is happening elsewhere; this can mean missing opportunities that come up when, for example, a competitor fails or a potential new customer enters the market. • Look at what your customers want, and at what your competitors are doing. • Don't be afraid to steal competitors' good ideas.
  5. 5. Learn from History 3 Step • In an ideal world, every company would enter a recession led by a team of grizzled executives who could draw on their experiences of past downturns to guide it through the current one. • If you have this resource, use it. If not, take time to analyze how your industry recovered during the previous recession and plan accordingly. • For example, executives who do not realize that their industry tends to recover before the economy as a whole may not be prepared in time.
  6. 6. The new world will be different Step 4 • You have to deal with the situation as it is now, but are you also thinking about what your business could be like in the future? • For two decades clients always wanted to “keep it Simple Stupid” (KISS) or provide a “Scientific Wild Ass Guess” (SWAG). Both techniques will need revising if your business is to survive this recession. • SWAGs as a concept for example, Scientific should be replaced by “Complicated”. Complicated products/services represent opportunity, the more complicated, the more potential competitors will be deterred. • Use scenario planning to work out how you would position your business to make the most of situations, such as a shift of economic power to the Far East. • Also, consider possible social, environmental and governmental factors and possible legislative changes. • Failing to do this “creates a real risk that businesses will position themselves in the wrong marketplace for the long term”.
  7. 7. Understand your value 5 Step • Be clear about what customers value, what you offer and what others do not. • If you do not know this, you risk cutting - or failing to invest in - the bits you will need when the economy improves. • Offer innovative and practical strategies for the current economic climate, and the roadmap to future profits through new business models. • Market saturation, hyper-competition & global economic pressures are making it increasingly more difficult to achieve a bottom line.
  8. 8. Spend 6 Step • Marketing and product development often bear the brunt of cost-cutting, but businesses need to keep these departments active. • Look for low-cost PR options - for example, Mobile Advertising campaigns - 4 Billion handsets are connected to the internet worldwide at any time, rather than television advertising. You need to communicate with people to retain your position in the marketplace. • Equally, R&D has to be maintained. When the market picks up, customers will expect new offerings. • Keep budgets tight by focusing on ideas that will bring ROI benefits within the next three years while slowing down longer-term projects. • Intelligent communications are the key to recovery from this recession.
  9. 9. Invest in employees 7 Step • When the market recovers, it will be more competitive than ever, so managers need to ensure that their employees' skills are sharp. • Try to give your best people bonuses even if you have to cut the overall number who receive them. In situations where organizations are cutting back, if they don't provide for their best people, they will lose them. • Firms that embrace high-speed mobile Internet technology can improve their employees’ performance by 12%, by not being hindered with needless paperwork and travel. • When the market turns, it would be prudent not to take on and train new employees, but to use temporary contract staff. • The flip side is that it may be a good time to poach good people from competitors.
  10. 10. Take a holistic view 8 Step • Review every facet of business activity, assess your competitive position and do not be afraid to challenge received advice and guidance. • Revert to core values and offer customers value propositions by providing after sales support which they don’t get by purchasing on the net. • This may mean, for example, “exiting some segments and competing harder in others, including through the acquisition of less well-managed competitors”.
  11. 11. Look at Financing options 9 Step • When the markets turn, those that can immediately take advantage will be the biggest winners. • Businesses need to be poised to move from a capital conservation mode to investing in growth. In many cases, building a war chest is a pipe dream, so it is worth exploring alternative sources of finance.
  12. 12. Stay positive 10 Step • If senior managers look fearful and pessimistic, staff will behave that way too. There are always be things to be positive about. • It's too easy to be negative and to get down about things but there will always be opportunities if you have the cash to keep things going. • Be positive and tackle the challenges and take advantage of the opportunity to minimize the risks associated with launching new applications. Find out what could be missing to bridge the gap between legacy and next-gen applications.
  13. 13. 11 Step Mobile Solution @ dvisory Service EuroServe- ssociates We are offering innovative and practical strategies for the current economic climate, and the roadmap to future profits through new business models. Why not visit our Blog: www.euroserve-assocates.blogspot.com

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