surviving the recession

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A Strategy for Small Business

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A Strategy for Small Business

Indexed and Jessica Hagyhttp://thisisindexed.com/2008/12/might-as-well-own-this-meltdown/

Look for changes that result from a downturn

Analyze SWOT (strengths, weaknesses, opportunities, threats)

Review what is working and what is not

Cut costs and/or grow sales Look for money on the balance sheetOutside sources of funding

Develop & implement a 3-6 month plan Set specific, measurable goals Create deadlines

Focus on the 5 largest expenses Focus on the 3 most successful sales strategies Make visible the key business measurements

Sales, cash flow, expenses, customer satisfaction How do they compare to budget/plan?

Get help from an objective 3rd party Mentor, accountant, banker, lawyer

STRENGTHSWhat do we do well?

INTERNALFOCUS

EXTERNALFOCUS

WEAKNESSESWhat is wrong now?

OPPORTUNITIESWhat possibilities exist?

THREATSWhat can go wrong?

• What are your advantages? • What do you do well? • What relevant resources do you have? • What do other people see as your

strengths?

• What could you improve? • What do you do badly? • What should you avoid?

• Where are the good opportunities? • What are the interesting trends? • Useful opportunities can come from:

• Changes in technology • Changes in government policy• Changes in organizational structure• Changes in business priorities

• What obstacles do you face? • What are other companies doing? • Is the playing field changing?• Is changing technology, trends, directions

threatening your position? • Could any of your weaknesses seriously

threaten your business?

Take a step back…. Don’t go chasing every dollar that

blows by What are you good at? Where can you make a few easy

sales? What can I do to keep my top

customers? What is essential and what is not?

Don’t be nice, be smart.

First thing to do:1. Increase revenues

2. Reduce expenses

3. ……or both

Expenses

Revenues

Review top 5 expenses Reduce wherever possible

A few of your options: improve workflows reprioritize your “wish” list uncomfortable is OK consider outsourcing

Adjust staffing for efficiencyUnnecessary positions?Train & cross train-combine positions?

Review payroll costs Local competitive pay rates?Review/Adjust benefits package?

Assess individual performance Incentives to retain high performers?Terminate low performers?

Evaluate price increases/decreases Actively monitor

competitors price changes

Use discounts cautiously Don’t grow sales without

profits

Focus on the 3 most successful sales strategies

Contact current customers & past prospectsAsk for referralsSolicit new product & service ideas-likes & dislikesFocus on best customers

Use internet/emailReview/upgrade website

What makes you stand out from the crowd?

Be plugged in to the detailsOwners should review all company

expenditures and sign all checksMake sure bills are being entered

Make visible the key business measurementsSales, cash flow, expenses, customer

satisfactionHow do they compare to budget/plan?

Shorten collection cycleEarly pay discountsSecure extended payment terms from

suppliersEnsure efficient inventory levelsReview supply chainReduce inventory of slow selling items

Communicate tirelessly – listenEmployees, Customers, Vendors

Keep your sense of humor Instill a sense of urgencyMeasurements & results weekly

Encourage employee involvement

Build your team

Think strategically; act tacticallyFocus on next 3-6 months

Implement your Tactical Action PlanFocus on profitable businessMeasure, measure, measureQuestion?Contact SBDC at The Business Incubator Center

for free, confidential business counseling

GJEP Market information and data Site selection assistance Labor market analysis Custom research Financial contacts Employment recruitment Workforce development assistance Access to public officials and regulatory authorities Coordination of state and local incentive and financial assistance

programs Building and build-to-suit coordination Communications and media contacts

The Business Loan Fund an alternative lending source for Mesa County

Small Business Administration (SBA) Small Business Finance Corp Colorado Lending Source

Colorado Housing & Finance Authority (CHFA)

Workshops and Counseling FREE one-on-one business counseling Through the Small Business Development Center (SBDC)

Financing Through the Business Loan Fund

Business Development Through the Business Incubator Program

Tax Incentives Through the Enterprise Zone

The Business Incubator Center

(970) 243-5242

www.gjincubator.org

Chris [email protected]

Julie [email protected]