Congratulations, you survived
This year, as we make the run into Christmas, as well as the seasonal exchange of greetings there will be quite a few people drawing a sigh of relief and congratulating themselves on surviving.
But while we spare a thought for all of those from the construction industry who will be spending Christmas without a job, don’t forget to make sure you are not joining them for Christmas 2010.
Many of those companies that have survived so far will have done so by battening down the hatches and minimising expenditure. They will have stopped marketing, put a halt on training and given their staff little or no pay increase. Desperate times call for desperate measures. But remember that more companies fail coming out of a recession than going into one. Cash flow is a major contributor to this, but not the only cause. If you have let your level of service drop, are not promoting the services you offer effectively and especially if you have not devised a strategy to take you forward, then you could be about to enter the most dangerous time for your business.
In a recession the best companies change for the better. They take out cost but they also look at what they can improve, how they can keep their best customers and what they can do to gain competitive advantage over competitors. Although 2010 will still be difficult, we have left behind the cliff face that our industry went over a year ago and we can be fairly certain about what to expect in 2010.
So, make time to look at your strategy. What are the threats and opportunities you will encounter in each sector and how will your business deal with them? Have you done all you can to make sure your people can work effectively and are happy? Because if not, they will leave you as soon as the market picks up. And the same applies to customers, are you talking to them regularly? Regular conversations will show them that you care, but also keep you informed about how they are changing to cope with the recession, which could present you with new opportunities.
This Christmas will mark a turning point for many companies. Some will be starting the slide into decline, others will be renewing themselves and improving profitability. I know where I want to be.