As you know, the recent economic downturn has had a negative impact on many businesses. However, there are some businesses that are continuing to excel and even grow in these troubled times. Being a consulting and business valuation manager in public accounting, I have had the opportunity to gain insight on what has been working for business owners and what has not during the last few months. Here are seven ideas to consider while trying to sustain or grow your business in today’s economy:
- Implement Change – Many times the biggest barrier for companies when implementing new ideas is their employees’ resistance to change. With more companies failing every week, employees are realizing the old way of doing business isn’t going to work anymore and that change might be necessary. Now is the time to implement your ideas to reduce waste, cut costs, and streamline operations.
- Increase Your Market Share – Supply chain managers are taking close looks at their suppliers’ ability to continue delivering products timely. They are more willing to transfer orders to suppliers that have stronger financial statements than they have historically been. Sales staffs should be revisiting bids on contracts they might have lost in the past and be looking for other transfer work opportunities.
- Win the War for Talent – Winning the war for talent means getting the absolute best people in the right places within your organization. Many executives agree that the acquisition of talented people has been getting harder as “baby-boomers” start to retire. However, the declining economy has created a competitive job market. Many talented people that have previously been comfortable in their respective companies might have been laid off or are looking to go to work for stronger companies to gain an increased feeling of job security.
- Buy Equipment at Fire Sale Prices – In many industries the used equipment market has been flooded with equipment from companies that have went out of business or that are downsizing. This could be the ideal time to update older equipment, expand capacity, or to obtain equipment for a new product line.
- Focus on Good Customer Service and Relationships – While good customer service and relationships have always been an integral part of doing business, they are even more important in this economy. This is true because your competitors are most likely out calling on your customers looking for transfer work as well. Most would agree that it is easier to keep an existing customer than it is to get a new customer.
- Review Government Programs/Incentives – Federal, state and local governments have programs such as the American Recovery and Reinvestment Act of 2009 (economic stimulus bill) which have been designed to stimulate the economy. These programs could have a big impact on your industry and staying up to date with them could result in additional business for your company. Also, with unemployment increasing, government officials are more likely to issue tax breaks for companies that are looking to create additional jobs within their state or county.
- Work Closely With Your Financial Institutions – As access to credit continues to be difficult in this economy, it is very important to work closely with your financial institutions. Many of the opportunities above could require additional capital to be able to take advantage of them. Keeping your financial institution up to date with your current financial information and business plans could make obtaining credit quicker and easier.
Without a doubt, there are going to be companies that fail, companies that just hang on, and companies that thrive in this economy. The companies that thrive are going to be the ones that are constantly looking for new opportunities and ways to improve. Be the company that thrives by taking a proactive stance and exit these troubled times a stronger company than when they began.
Kyle Wininger, CPA, CICA is a Manager at Harding, Shymanski & Company, P.S.C. – Certified Public Accountants and Consultants, an independent member of the RSM McGladrey Network. Harding, Shymanski & Company, P.S.C. provides accounting, tax and consulting services to clients from offices in Evansville, Indiana and Louisville, Kentucky and is one of the largest locally owned CPA firms in Indiana and Kentucky. Kyle can be reached at kwininger@hsccpa.com or 812-491-1412.
