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 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!
