Surviving The Recession

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  • Surviving The Recession

    1. 1. A Strategy for Small Business
    2. 2. Indexed and Jessica Hagy http://thisisindexed.com/2008/12/might-as-well-own-this-meltdown/
    3. 3. <ul><li>Look for changes that result from a downturn </li></ul><ul><li>Analyze SWOT (strengths, weaknesses, opportunities, threats) </li></ul><ul><li>Review what is working and what is not </li></ul>
    4. 4. <ul><li>Cut costs and/or grow sales </li></ul><ul><li>Look for money on the balance sheet </li></ul><ul><li>Outside sources of funding </li></ul>
    5. 5. <ul><li>Develop & implement a </li></ul><ul><ul><li>3-6 month plan </li></ul></ul><ul><ul><li>Set specific, measurable goals </li></ul></ul><ul><ul><li>Create deadlines </li></ul></ul><ul><li>Focus on the 5 largest expenses </li></ul><ul><li>Focus on the 3 most successful sales strategies </li></ul><ul><li>Make visible the key business measurements </li></ul><ul><ul><li>Sales, cash flow, expenses, customer satisfaction </li></ul></ul><ul><ul><li>How do they compare to budget/plan? </li></ul></ul><ul><li>Get help from an objective 3rd party </li></ul><ul><ul><li>Mentor, accountant, banker, lawyer </li></ul></ul>
    6. 6. STRENGTHS What do we do well? INTERNAL FOCUS EXTERNAL FOCUS WEAKNESSES What is wrong now? OPPORTUNITIES What possibilities exist? THREATS What can go wrong? <ul><li>What are your advantages? </li></ul><ul><li>What do you do well? </li></ul><ul><li>What relevant resources do you have? </li></ul><ul><li>What do other people see as your strengths? </li></ul><ul><li>What could you improve? </li></ul><ul><li>What do you do badly? </li></ul><ul><li>What should you avoid? </li></ul><ul><li>Where are the good opportunities? </li></ul><ul><li>What are the interesting trends? </li></ul><ul><li>Useful opportunities can come from: </li></ul><ul><ul><ul><li>Changes in technology </li></ul></ul></ul><ul><ul><ul><li>Changes in government policy </li></ul></ul></ul><ul><ul><ul><li>Changes in organizational structure </li></ul></ul></ul><ul><ul><ul><li>Changes in business priorities </li></ul></ul></ul><ul><li>What obstacles do you face? </li></ul><ul><li>What are other companies doing? </li></ul><ul><li>Is the playing field changing? </li></ul><ul><li>Is changing technology, trends, directions threatening your position? </li></ul><ul><li>Could any of your weaknesses seriously threaten your business? </li></ul>
    7. 7. <ul><li>Take a step back…. </li></ul><ul><ul><li>Don’t go chasing every dollar that blows by </li></ul></ul><ul><ul><li>What are you good at? </li></ul></ul><ul><ul><li>Where can you make a few easy sales? </li></ul></ul><ul><ul><li>What can I do to keep my top customers? </li></ul></ul><ul><ul><li>What is essential and what is not? </li></ul></ul><ul><li>Don’t be nice, be smart. </li></ul>
    8. 8. <ul><li>First thing to do: </li></ul><ul><ul><li>Increase revenues </li></ul></ul><ul><ul><li>Reduce expenses </li></ul></ul><ul><ul><li>…… or both </li></ul></ul>Expenses Revenues
    9. 9. <ul><li>Review top 5 expenses </li></ul><ul><ul><li>Reduce wherever possible </li></ul></ul><ul><li>A few of your options: </li></ul><ul><ul><li>improve workflows </li></ul></ul><ul><ul><li>reprioritize your “wish” list </li></ul></ul><ul><ul><li>uncomfortable is OK </li></ul></ul><ul><ul><li>consider outsourcing </li></ul></ul>
    10. 10. <ul><li>Adjust staffing for efficiency </li></ul><ul><ul><li>Unnecessary positions? </li></ul></ul><ul><ul><li>Train & cross train-combine positions? </li></ul></ul><ul><li>Review payroll costs </li></ul><ul><ul><li>Local competitive pay rates? </li></ul></ul><ul><ul><li>Review/Adjust benefits package? </li></ul></ul><ul><li>Assess individual performance </li></ul><ul><ul><li>Incentives to retain high performers? </li></ul></ul><ul><ul><li>Terminate low performers? </li></ul></ul>
    11. 11. <ul><li>Evaluate price increases/decreases </li></ul><ul><ul><li>Actively monitor competitors price changes </li></ul></ul><ul><li>Use discounts cautiously </li></ul><ul><ul><li>Don’t grow sales without profits </li></ul></ul>
    12. 12. <ul><li>Focus on the 3 most successful sales strategies </li></ul><ul><li>Contact current customers & past prospects </li></ul><ul><ul><li>Ask for referrals </li></ul></ul><ul><ul><li>Solicit new product & service ideas-likes & dislikes </li></ul></ul><ul><ul><li>Focus on best customers </li></ul></ul><ul><li>Use internet/email </li></ul><ul><ul><li>Review/upgrade website </li></ul></ul><ul><li>What makes you stand out from the crowd? </li></ul>
    13. 13. <ul><li>Be plugged in to the details </li></ul><ul><ul><li>Owners should review all company expenditures and sign all checks </li></ul></ul><ul><ul><li>Make sure bills are being entered </li></ul></ul><ul><li>Make visible the key business measurements </li></ul><ul><ul><li>Sales, cash flow, expenses, customer satisfaction </li></ul></ul><ul><ul><li>How do they compare to budget/plan? </li></ul></ul>
    14. 14. <ul><li>Shorten collection cycle </li></ul><ul><li>Early pay discounts </li></ul><ul><li>Secure extended payment terms from suppliers </li></ul><ul><li>Ensure efficient inventory levels </li></ul><ul><ul><li>Review supply chain </li></ul></ul><ul><ul><li>Reduce inventory of slow selling items </li></ul></ul>
    15. 15. <ul><li>Communicate tirelessly – listen </li></ul><ul><ul><li>Employees, Customers, Vendors </li></ul></ul><ul><li>Keep your sense of humor </li></ul><ul><li>Instill a sense of urgency </li></ul><ul><ul><li>Measurements & results weekly </li></ul></ul><ul><li>Encourage employee involvement </li></ul><ul><li>Build your team </li></ul>
    16. 16. <ul><li>Think strategically; act tactically </li></ul><ul><ul><li>Focus on next 3-6 months </li></ul></ul><ul><li>Implement your Tactical Action Plan </li></ul><ul><li>Focus on profitable business </li></ul><ul><li>Measure, measure, measure </li></ul><ul><li>Question? </li></ul><ul><ul><li>Contact SBDC at The Business Incubator Center for free, confidential business counseling </li></ul></ul>
    17. 18. <ul><li>GJEP </li></ul><ul><li>Market information and data </li></ul><ul><li>Site selection assistance </li></ul><ul><li>Labor market analysis </li></ul><ul><li>Custom research </li></ul><ul><li>Financial contacts </li></ul><ul><li>Employment recruitment </li></ul><ul><li>Workforce development assistance </li></ul><ul><li>Access to public officials and regulatory authorities </li></ul><ul><li>Coordination of state and local incentive and financial assistance programs </li></ul><ul><li>Building and build-to-suit coordination </li></ul><ul><li>Communications and media contacts </li></ul>
    18. 19. <ul><li>The Business Loan Fund </li></ul><ul><ul><li>an alternative lending source for Mesa County </li></ul></ul><ul><li>Small Business Administration (SBA) </li></ul><ul><ul><li>Small Business Finance Corp </li></ul></ul><ul><ul><li>Colorado Lending Source </li></ul></ul><ul><li>Colorado Housing & Finance Authority (CHFA) </li></ul>
    19. 20. <ul><li>Workshops and Counseling </li></ul><ul><ul><li>FREE one-on-one business counseling </li></ul></ul><ul><ul><li>Through the Small Business Development Center (SBDC) </li></ul></ul><ul><li>Financing </li></ul><ul><ul><li>Through the Business Loan Fund </li></ul></ul><ul><li>Business Development </li></ul><ul><ul><li>Through the Business Incubator Program </li></ul></ul><ul><li>Tax Incentives </li></ul><ul><ul><li>Through the Enterprise Zone </li></ul></ul>
    20. 21. <ul><li>The Business Incubator Center </li></ul><ul><li>(970) 243-5242 </li></ul><ul><li>www.gjincubator.org </li></ul><ul><li>Chris Reddin </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Julie Morey </li></ul><ul><ul><li>[email_address] </li></ul></ul>

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