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 Laura Armstrong on Fri, Oct 02, 2009 @ 05:17 PM
By Michael Gunther, Founder and President of Collaboration Business Growth Specialists
If you are in business today, you can count yourself a success; many local and national companies have had to close their doors. In the past 12 months, you've been faced with issues that most of us have never been faced with before, from shrinking markets to severe credit requirements to sharp revenue declines to employee fraud. Whether you resized your team, redesigned your business model, or returned to the very basics of building your business, cong
ratulations, you've survived.
Now is the time to figure out how your business can thrive in the coming 12 months, while overcoming the few peaks and valleys we will still face in the marketplace. Here's how you can start:
First, take a look back over the last 12 months and analyze what you've done right and how you can improve. Ask yourself and your employees the following questions:
What changes have you made that worked?
What changes do you wish you had made?
What strategies did you employ that allowed you to survive the year?
Next, begin to look forward and establish at least three strategies to implement in your business this next year. I recommend looking at these three critical areas of your business, at a minimum:
BUSINESS DEVELOPMENT
If there is one thing businesses learned this last year it's that we have to earn our customers' business again. This means that creating solid business development processes is imperative to sustaining a healthy business. Here are a few questions to ask yourself:
Are there new marketing strategies that you can implement?
Do you need to adjust your product or service mix?
Is there a product or service that will be in high demand?
Do you have a solid sales infrastructure to support your financial goals?
FINANCIALS
Even though you've probably been trimming costs over the last 12 months, I suggest that you reevaluate all of your expenses again and create a realistic 12-month financial forecast. I have seen some businesses create a best case and worst case scenario with their budgets and they manage their expenses at worst case and their sales at best case. One tip for trimming expenses is to meet with your vendors and renegotiate your pricing or terms.
LEADERSHIP
Now is the opportunity for you to step up and be a strong business leader with an attitude of 'thriving' rather than 'surviving.' Challenge your team and yourself to be innovative in both growing and running your business. Your attitude will shape the attitude of your team and in turn will shape your business' future. Remember: attitude impacts thoughts, thoughts impact behaviors. Keep your attitude in check.
THE BOTTOM LINE
Moving past survive into thrive mode will require you to step back and work 'on' your business and not just 'in' your business. Even if you identify just three new strategies to begin implementing, you will be ahead of the game.
Michael Gunther is Founder and President of Collaboration LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners to build profitable, sustainable businesses through results-oriented education, coaching, and consulting services. Learn more at www.collaboration-llc.com
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