January 2009
Extra
Four Tips For A Successful '09
What recession? Those distributors that want to succeed in 2009 need to focus less on the negative and more on the positive, according to numerous business experts. At this point the economic realities are clear to all. As a result, "business people need to pull their heads out of their butt," says Scott R. Ringold, CEO of Powerfeedback. "Yes things are tough, but they are always tough for small businesses."
He recommends tuning out and turning off all the news stations immediately as "they will drag you down mentally and emotionally." Aside from maintaining a positive attitude, here are four tips for distributors looking to rally during what most believe will be a challenging year:
1. Renegotiate. Things are tough for everyone. Why not take advantage of that fact? Start by renegotiating your lease. "It's not uncommon for them to lower the rent rather than risk losing a reliable tenant and source of revenue," says Brian Carlson, CEO of Excel National Bank. Or, if the money is available, consider purchasing commercial space. "With real estate prices plunging, there are deals to be had," he says. Cell phone plans and other overhead costs can also be reworked to a company's advantage.
2. Motivate. Implement a customer appreciation program where aside from sales calls, clients get "touched" with something four times a year, says Christopher Flett, founder of the Ghost CEO. It can be a magazine subscription that matches their hobby, a thank you card "or something else that isn't expensive, but has impact." Employees are nervous too and need some encouragement during these trying times. Plan a couple of outings for your employees, says Rob Wilson, president of Employco. Again, it does not have to be expensive, but "a social event could be extremely beneficial."
3. Eliminate. It is a good time to seriously reevaluate suppliers to ensure you are getting the best value. Commit to a monthly review of sales generated by products and services offered, says Ed Horton, CPA and partner at Citrin Cooperman & Company. "Strong sales of one product can mask weak sales elsewhere and drag down overall profits, he says. If information is tracked, decisions can be made as to whether to improve slumping products and services or eliminate them from the mix entirely. Now is a time to focus on profitability – and eliminating underperforming functions at your company is one way to help the bottom line.
4. Propagate. Take a good, hard look at what worked in 2008 and what didn't. Then you should focus your efforts in 2009 on pushing forward with the tactics that were effective. Companies that don't do evaluations often enough "either repeat mistakes or don't give enough attention to things that work," says Flett. "The team should look at dropped balls and missed opportunities. Distributors need to decide what can be done differently this year." They should also look at the best practices that worked and say "how can we do more of that?"
Ken Hein is an NJ-based freelance writer.
