Posted by Eric Hubbs on Thu, Jun 03, 2010 @ 01:54 PM
By Eric Hubbs
How does the saying go, "Don't count your chickens before they've hatched?" This seems to be the theme of our current economy. Word on the street is it's getting better and that there is a visible growth trend; however, it's crucial for business owners to understand what is generating the momentum and to remain cautious and calculated in our financial decisions - as difficult as it may be.
Beacon Economics presented their 2010 San Luis Obispo County Economic Outlook at the Paso Robles Event Center yesterday. Principal Christopher Thornberg and Director of Regional Research Brad Kemp spoke to a group of Central Coast professionals and delivered their economic forecast. While optimistic about the trends and growth, they remained realistic that we are not out of the woods yet. The primary sources of the spending increase are not sustainable. The equity market is up - good news - but based on the facts, the P/E ratio is overvalued, and it is evident that the market is not consistent. Even with the impact of the government stimulus, of which less than half has been spent, it's just a cushion for the moment, not a solution. And it's not an infinite resource. If we do not make educated decisions right now, we may find ourselves backpedaling.
They cited serious structural problems, a politically motivated band-aid covering the severe financial wound. Rob Garcia of Rob Garcia Wealth Management compares it to a poorly run business thriving in a good economy - the problems don't surface until bad times, and then it becomes that much more difficult to save the struggling business. He said until structural adjustments are created and implemented to improve the business operations, "it's like kicking the can down the street."
That's not to say there is no hope, because the good news is - there is! There is opportunity, and it takes creative actions to recognize and capitalize on them. Although numbers indicate San Luis Obispo County has experienced an extended recession, greater than surrounding counties, they also indicate we have faster recovering markets within arm's reach. Businesses within San Luis Obispo County can target these outer local markets and tap into their potential. Utilizing powerful resources to gain real knowledge and understand the present trends is vital, and can have a tremendous impact on the success of your business.
To help you make more educated decisions, view or download the 2010 San Luis Obispo County Economic Outlook presentation by Beacon Economics at http://www.beaconecon.com/.
We want to hear from you. Please share your thoughts, reactions, and creative solutions by commenting below.
Posted by Jennifer Porcher on Tue, Jul 28, 2009 @ 01:02 PM
Jennifer Porcher, Vice President of Educational Services at Collaboration
Business Realities, Meet Personal Vision
Have you ever found yourself faced with the burden of having more business than you can handle? Maybe you have experienced the feeling that you cannot control the growth of your business and that you have a shortage of management expertise. You used to think that you controlled the direction of business, but lately your clarity has become muddled; you're working more hours in a week than you prefer, and you're lacking time for other life responsibilities. Maybe your business has simply outgrown its original business plan and the existing business structure no longer supports the current level of operations.
So where do we go from here?
Step 1: Refocus and redefine your personal vision and long-term goals. How are daily operations impacting the basic personal needs that are most important to living your vision?
Step 2: Review your individual reasons for starting a business. Determine whether power, status, or a desire for control and recognition drive you.
Step 3: Decide if your intent is to operate a business based on growth or lifestyle.
-
A growth business may sound ideal, but often times the demands of operating a fast-growing company can make it challenging to balance personal and professional lives.
-
On the other hand, a lifestyle business can be limited in size and limited in growth potential.
Step 4: At this point you must choose a business path that best suits you and stick to it. Your goal is to thoughtfully make decisions based on your ultimate purpose for being in business, as defined by your personal vision.
Download an expanded version of these steps to find out the solution to balancing your business life.
The Bottom Line:
The business can take on a life of its own if not properly directed by its leader. This is a fine line to walk and requires the utmost care when you have important business decisions to make.
Don't be afraid to ask for an outside perspective. Talk with someone who can help you to separate the facts from the feelings or recognize emotion among all the fine details. Involving an outside party is a great way to ensure your personal vision becomes your business reality.
Sign up for a Free Hour Business Consultation and let one of our Collaboration Certified Consultants help you determine the right path and structure for your business.
Posted by Eric Hubbs on Sun, Jul 26, 2009 @ 11:18 AM
Secrets of Surviving a Down Economy- Derived from Extensive Small Business Research
By Michael Gunther and Eric Hubbs
The business environment has evolved quickly in the last few months. You might remember it was only a short while ago that your phones would be ringing off the hook with potential clients, customer traffic was high in your store, people were actually buying goods, and your website was receiving high visitor counts and requests for bids. Business was to be had, without having to try to gain or earn the business.
Then came "The Great Recession," and all the sudden, you're finding yourself scrambling for work. You spend more time than ever trying to find clients, and you have little time to actually lead your business because you are so busy working in the business.
What can you do to accelerate your business growth again?
We have compiled some strategies that we've used with hundreds of our clients to build successful businesses even in the most challenging economic times.
Take a look at your top clients - research everything about them
- Take 30 minutes and make a spreadsheet.
- On the left put you're the 10 clients or customers who you really enjoyed working with.
- Then, on the top, put the following headers: Age, sex, where they live, why they came to you, how fast they decided to work with you, where they heard of you, if they bought repeat services from you, and 5 other questions that are pertinent to your product or service.
- Fill in all these questions for each client in the spreadsheet
- The goal is to learn who your target clients/customers are, how they buy, and how you can get more people like them to hear of you.
- Then take a look at the averages and the repeats and compare that with your current lead generation activities.
- Are you spending time where your ideal clients are? Are you putting your energy into the right types of marketing campaigns?
- Don't waste time or money marketing to people who aren't similar to the people on this list.
Don't let optimism get the best of you
- Many businesses are suffering right now. Business is down. It's a reality. It's something that is not going to go away anytime soon, so instead of hoping that the next sunny day is coming soon- you've got to face reality and realize that to survive this economy, you have to look at the changes that need to be made to fit the current situation.
- You may need to cut certain services, re-structure your team, or change your marketing strategies. Whatever you do, make sure it is in keeping with the fact that we may be in this recession for awhile. It doesn't mean you have to change everything, but those who do make the tough decisions now will be around to rapidly grow when things turn around.
Utilize and appreciate your team like you never have before
- If you're stressed during these times, you can bet that your employees are more stressed.
- Keep open communication with your employees about where your company stands, and collaborate with them on how to capitalize on the strengths of the company - they most likely will see things you don't.
- Listen to them as they give you advice on how the company can improve processes, decrease expenses and take advantage of opportunities.
- Look for skills they may have not been using in their position, but could start utilizing to improve the company.
- Continue to invest your time and money to train your employees and keep their skills sharp. As the economy continues to decline, it will be even more imperative that your employees wear multiple hats.
If you feel yourself getting frustrated with this economy, just remember that there were more millionaires created during The Great Depression of the 1930's than any other time in U.S. History. The opportunities are out there. The strong will survive. You have to work harder, smarter, and be constantly monitoring how you can improve. It is an exciting time to own a business!
Posted by Michael Gunther on Thu, Jul 23, 2009 @ 12:53 PM
By Christine Sommer, Collaboration Certified Consultant
Structure, processes and accountability. Fun? Not always, but they are a necessary evil for the survival of a business. Unfortunately, we often see the artistic and creative entrepreneur struggle with this skill set.
Creative entrepreneurs have such a passion for the masterpieces they create, but the business structure is often lacking. All too often the creative-preneurs come to us with big visions of business concepts with hundreds of possibilities but just can't seem to implement the actions to make it happen. The key ingredients that are usually missing include: structure, processes and accountability. Entrepreneurs who do develop these skills can take their company to a whole new level. So how can you make these happen?
Structure:
Treat yourself like a client. Set up a time to meet with your staff or just yourself each week to plan out what needs to get accomplished. Set up yearly, monthly and weekly goals. Get the ideas out of your head and put them down on paper. You now have a place to go to start prioritizing the ideas you want to implement.
Sign up for a Free Hour Business Consultation that can be done in person or over the phone and let one of our Collaboration Certified Consultants help you determine the right path and structure for your business.
Processes:
Create processes for the work that you do on a repeated basis. Utilize technology to streamline your work. Managing your time is critical in building a business, and when the process gets created, time spent in certain areas can often be cut in half. Not only that, but when you hire and employee to do that job they will thank you for having the system in place.
Our Business Assesment Consulting here at Collaboration-LLCis geared for established organizations that need to fine-tune current business practices. This interactive assessment will evaluate your business in 4 key areas using our proven business model, benchmark your business within your industry and then, provide you with a Game Plan to grow your business and sustain profitability.
Accountability:
How do you hold someone accountable to make sure things get done? Set out an action plan with the task that needs completion. Assign a date it was created, write out the task at hand, who it was assigned to and, most important, the due date. If you are having a hard time holding yourself accountable, join a mentoring group. There are several groups in the business community designed to hold business owners accountable to the goals they create for themselves. Get support from outside of your company and let them help you stay on track.
Here is more information on our Management Training Program that will help you strengthen your management team and increase productivity in your business.
The Bottom Line:
Developing these skills when they are not your natural talent will enhance your leadership skills and help you become a profitable and sustainable business.
If you have any questions or would like to receive more information please feel free to Contact Us!
Posted by Michael Gunther on Wed, Jun 10, 2009 @ 01:30 PM
By Michael Gunther, President of Collaboration LLC, Business Growth Specialists
Who is your client?
In today's business climate, there are more hurdles and challenges to obtaining and keeping clients than ever. In an effort of self-preservation, more companies are cutting back. They are reducing costs where they didn't think possible, they are outsourcing less work, and they are tentative to make decisions involving capital. To obtain and keep clients in this market, businesses need to get "back to basics." And there's nothing more basic than your client: no client, no business.
To get back to basics in regards to sales, we must re-establish the fundamental approach of selling. Sales Is a Science - there are methods and processes that if put into practice on a consistent basis will lead to increased business, even in the most challenging of economies.
Develop your Client Profile
Most businesses overlook this important first step of selling. They may feel that everyone can benefit from their products or services so they market, network, and promote their business to a myriad of audiences and therefore waste money and time chasing unsuitable prospects and marketing to uninterested parties. Developing a solid client profile, even creating different profiles for different products or services, is a critical piece to building a solid sales system.
A simple method to determine your ideal client profile is to first identify your top 10-20 clients. Then analyze: What do they have in common? Do they drive comparable cars? Do they have similar jobs or hobbies? What are their demographics (age, sex, income, education, geographic reach) and psychographics (buying behaviors, hobbies, beliefs, values)?
You can look at established companies for examples of how they've defined their client profile. For instance, you probably won't see an ad for a Lexus in Reader's Digest, but you will see their ad in Business Week. Wal Mart and Target sell similar products, but have built their client profiles based on different niches: price (Wal Mart) and trend (Target). If you can understand the demographics and psychographics of your targeted clients like these established companies do, you will fully understand your clients buying behaviors, provide products and services more efficiently and quickly, and effectively market to your ideal prospective clients.
Locate New Prospects
Once you've created your client profile, you can begin to strategize how to generate new prospects. Ask yourself questions, such as: What publications do my clients read? What community events are they involved in? Who else knows these clients or sells to these clients? By answering strategic questions such as these, you can begin channeling your sales time and marketing dollars in a more direct fashion.
A client of ours recently created their client profile and realized that their ideal client typically had high school aged children and lived in specific neighborhoods around town. Based on this information, they were able to target their marketing dollars by sponsoring various high school sporting events and sending direct mail pieces to these precise neighborhoods, and they were also able to adjust their messaging to match the needs of their audience. By making a few strategy changes based on their client profile, they saved money and increased the number of prospective clients.
Bottom Line: A strong sales foundation starts with a strong client profile. Otherwise, you will waste both dollars and time trying to grow your business. And for most business owners and managers, neither of these is in abundant supply.
Michael Gunther is the President of Collaboration LLC, business growth specialists based in San Luis Obispo, California.
Technorati Profile