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At Times Like this
- By Business World
- Published May 11th, 2010
- Smartmoney
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At Times Like this
THESE are classical hard times. I have not seen so many people moaning in this manner at any one time. A lot of people are giving up on their dreams. Businesses are barely alive. What gives hope though is that I still see people and businesses thriving and even raking in a lot of money amidst the cries.
No one is quite able to explain why the world suddenly slipped into this sorry mode but many agree that we collectively got careless, over confident and lost the use of the caution nerve just before we were hit by the hard times.
I don’t lay claims to a solution for small businesses but there are a few things one can do to survive these times. Some of these are solid, time tested business principles that were discarded in the boom that preceded the crash.
The very first I can think of is a thorough look at the processes, traditions, objectives, vision and mission of a business. Is there any indication that circumstances have overtaken these? I have never known that these are cast in stone and cannot change. Consider how powerful nations and corporations perpetually re-align and change positions to protect their interest while we all wonder at them; that is survival for you. Your business could shift position on some issues provided there is nothing unethical about the move.
This is already happening. I have seen some shifts in position by big businesses that just realized that their old standoffish way of relating with customers was failing them. Has anyone noticed that some products that were hitherto meant for just the rich are acquiring new packs that are making them affordable to us all? What of the relaxing of terms and conditions for distributors by huge businesses? Why are we seeing companies that hitherto never directly engaged in haulage of goods to distributors now doing that with gusto?
How much satisfaction are you giving to your customers? Are you giving satisfactory service to a great number of people? Do you need to expand your customer base? Did you needlessly exclude a lot of people by price policies? Can you reach out to more people and still make money and profit? This applies most to those whose services and goods were meant for the fast disappearing middle class; they simply must reach out to other classes or sink. These are times when you must get down to the masses with your goods and services.
Are you minding cash flow very well? Nothing kills in these times like leaving all your money lying out there or spending recklessly. Many businesses try to keep customers by not being firm to some extent with getting paid for goods and services. This is suicidal at times like this; it has never been good at any time.
This is to be accompanied by micro-managing. You can’t afford now to over-delegate or look the other way when managers are planning. You need to be there to trim and question every expense. You’d be surprised at how much you can shave off the bloated expenses you are wont to engage in if you leave it all to some people who wouldn’t be directly hit if the business collapses.
Another thing I have realized is that every business can give profit at any time. I recollect what happened when I started off newly, all businesses of the same type with mine in the vicinity were collapsing. Only two were alive and doing very well. I got only discouragement; I was advised to abandon ship by the owners of the failing businesses. I approached the owner of one of the two successful businesses to ask for advise but he was very hostile. I stumbled on, making very terrible mistakes but I plodded on convinced that there was nothing inherently wrong with that line of business. If the other two made it, then there was nothing in the business that impeded profit-making. The fault must come from me, I must be doing many things wrong, I surmised.
I was right. It took time but I was able to discover my errors. Once the needed corrections were made, my head started appearing above water for the first time in close to two years of literally stumbling about. I think many of us need to look around us and see who is doing the same thing and succeeding; even one success story is enough to convince one that an entire industry is not diseased and distressed. Maybe all but the successful one got it wrong. Too much optimism? I think not and I have seen the majority being wrong several times. Break away from the crowd of mourners, sneak close to the single smiling individual and see what he has been up to. I personally ceased to stand around with self-confirmed failures long a go; you’ll never keep your eyes dry enough to see a way out in that type of company.
Get a mentor. This is closely related to the idea of being close to a success story maker. Get close enough to get out intimate details that could transform your business. There are times we waste time barking up the wrong tree for a long time while things worsen. A mentor is more likely to help us get to the root of the problem faster.
One look is enough to make an experienced friend tell you where your problems are coming from. He may have been through your problem before and somehow stumbled on a solution. He knows where the drain pipes are buried in that line of business. He will look in the right places faster that you can. Get close to someone with experience to share.
Need I say that prayer works? A lot of people have tried this and attest to its efficacy. The Great One can, if you ask him, guide you to solutions.
I also seriously suggest an adoption of a slight variation to 50 Cents’ battle cry. Let it be something like, “Make it work or die trying”. Many that succeeded battled with lots of odds, went bankrupt a few times but persisted. The Lady Fortune is a slick one and takes a lot of wooing to accede to a request to rest by your abode.
THESE are classical hard times. I have not seen so many people moaning in this manner at any one time. A lot of people are giving up on their dreams. Businesses are barely alive. What gives hope though is that I still see people and businesses thriving and even raking in a lot of money amidst the cries.
No one is quite able to explain why the world suddenly slipped into this sorry mode but many agree that we collectively got careless, over confident and lost the use of the caution nerve just before we were hit by the hard times.
I don’t lay claims to a solution for small businesses but there are a few things one can do to survive these times. Some of these are solid, time tested business principles that were discarded in the boom that preceded the crash.
The very first I can think of is a thorough look at the processes, traditions, objectives, vision and mission of a business. Is there any indication that circumstances have overtaken these? I have never known that these are cast in stone and cannot change. Consider how powerful nations and corporations perpetually re-align and change positions to protect their interest while we all wonder at them; that is survival for you. Your business could shift position on some issues provided there is nothing unethical about the move.
This is already happening. I have seen some shifts in position by big businesses that just realized that their old standoffish way of relating with customers was failing them. Has anyone noticed that some products that were hitherto meant for just the rich are acquiring new packs that are making them affordable to us all? What of the relaxing of terms and conditions for distributors by huge businesses? Why are we seeing companies that hitherto never directly engaged in haulage of goods to distributors now doing that with gusto?
How much satisfaction are you giving to your customers? Are you giving satisfactory service to a great number of people? Do you need to expand your customer base? Did you needlessly exclude a lot of people by price policies? Can you reach out to more people and still make money and profit? This applies most to those whose services and goods were meant for the fast disappearing middle class; they simply must reach out to other classes or sink. These are times when you must get down to the masses with your goods and services.
Are you minding cash flow very well? Nothing kills in these times like leaving all your money lying out there or spending recklessly. Many businesses try to keep customers by not being firm to some extent with getting paid for goods and services. This is suicidal at times like this; it has never been good at any time.
This is to be accompanied by micro-managing. You can’t afford now to over-delegate or look the other way when managers are planning. You need to be there to trim and question every expense. You’d be surprised at how much you can shave off the bloated expenses you are wont to engage in if you leave it all to some people who wouldn’t be directly hit if the business collapses.
Another thing I have realized is that every business can give profit at any time. I recollect what happened when I started off newly, all businesses of the same type with mine in the vicinity were collapsing. Only two were alive and doing very well. I got only discouragement; I was advised to abandon ship by the owners of the failing businesses. I approached the owner of one of the two successful businesses to ask for advise but he was very hostile. I stumbled on, making very terrible mistakes but I plodded on convinced that there was nothing inherently wrong with that line of business. If the other two made it, then there was nothing in the business that impeded profit-making. The fault must come from me, I must be doing many things wrong, I surmised.
I was right. It took time but I was able to discover my errors. Once the needed corrections were made, my head started appearing above water for the first time in close to two years of literally stumbling about. I think many of us need to look around us and see who is doing the same thing and succeeding; even one success story is enough to convince one that an entire industry is not diseased and distressed. Maybe all but the successful one got it wrong. Too much optimism? I think not and I have seen the majority being wrong several times. Break away from the crowd of mourners, sneak close to the single smiling individual and see what he has been up to. I personally ceased to stand around with self-confirmed failures long a go; you’ll never keep your eyes dry enough to see a way out in that type of company.
Get a mentor. This is closely related to the idea of being close to a success story maker. Get close enough to get out intimate details that could transform your business. There are times we waste time barking up the wrong tree for a long time while things worsen. A mentor is more likely to help us get to the root of the problem faster.
One look is enough to make an experienced friend tell you where your problems are coming from. He may have been through your problem before and somehow stumbled on a solution. He knows where the drain pipes are buried in that line of business. He will look in the right places faster that you can. Get close to someone with experience to share.
Need I say that prayer works? A lot of people have tried this and attest to its efficacy. The Great One can, if you ask him, guide you to solutions.
I also seriously suggest an adoption of a slight variation to 50 Cents’ battle cry. Let it be something like, “Make it work or die trying”. Many that succeeded battled with lots of odds, went bankrupt a few times but persisted. The Lady Fortune is a slick one and takes a lot of wooing to accede to a request to rest by your abode.
