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 Editor's Note
Our yacht club recently hosted an amazing regatta. We had 200 of the best Optimist sailors in the country descend upon Annapolis to qualify for the Optimist Worlds and other international Optimist regattas. These kids ranged in age from 10-15, and it was incredible to see how well they could move their little boats around the race course. Things have certainly gotten more sophisticated than when I was a junior.
There was one kid who really impressed me. Just before the start of one race, he realized that his sail wasn't attached to the mast correctly, and that if he finished in the top ten in that race, he would be penalized. He's a great sailor and had a great chance of finishing in the top ten in every race. So, he decided to pull the mast out of his boat before the race and fix the sail. He ended up starting the race two minutes late behind absolutely everyone. By the end of the race, he'd passed half the boats, and finished mid-fleet.
It was his worst finish of the regatta, but probably his most honorable. If he had finished in the top ten and gotten the penalty, he would have had a higher place than he eventually earned. But, he earned the esteem of the measuring and race committees and his competitors for being honest, which will earn him a lot more credibility when it comes to future close calls.
In addition to his honor, what inspired me was his attitude. How could he start dead last, two minutes behind the next boat, and pass half the fleet? He has a saying duct-taped inside the front of his boat that he can see throughout each and every race: '"Every boat counts."
That kind of attitude is something we can all learn from in these economic times.
The dollar's value is down. The housing market is in a slump. Food and fuel prices are up. Despite a barrage of bad news in the media in the best of times, the recent economic news and the corresponding sticker price realities of food and fuel are impacting most people and businesses in a whole new way.
The Bad News: There are negative economic factors influencing our personal lives and our businesses. And we can't do anything about them.
The Good News: We can control how we respond to them.
Yes, you can. You can take a deep breath, realistically assess how the current economic trends are impacting you, and develop a strategy. (And then duct tape it where you can see it each and every day.)
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Molly Hughes Wilmer
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Feature
Taking It on the Chin to Win
It is possible to succeed in tough economic times. However, your strategy for success and your definition of success are probably not the same as in more prosperous times.
The first step is to take a brutally realistic assessment of how the economic trends are influencing you. Are your expenses up? Are your traditional income streams going to be impacted? Are you forced to hold onto real estate investments longer than you would have desired? Is competition tighter?
So, now that you've taken off the rose-colored glasses, and seen the world as it really is, what are you going to do about it?
You could put your glasses back on, put your analyses in a file or the trash can or the bottom of the pile, go back to how you have been doing things, eventually borrow, borrow, borrow, or lose, lose, lose, and be worse off in the future than you are now. But if you're reading this, you know you don't want to do that. You don't have to do that. You have choices.
Back to the Basics
Unless they are founded on weak economic principles, it is highly unlikely that entire industries will fail. However, it is very likely that significant numbers of businesses in any one industry will fail. How do you make sure you're not one of them? Find your competitive spirit, and work harder than ever at being the best in your space. Focus on the basics.
What value are you truly offering your clients? How is the relevance of that value influenced by the current economic situation? How can you reshape it to increase the relevance? How should your messaging change? Be proactive about getting the word out and maybe even more aggressive than before - shrinking violets will indeed shrink in this market.
What is your business model? Can you shift your product/service offering to less expensive options that have the same value for you customers? One restaurant is offering less pasta dishes and more locally caught fish and is having a positive response to higher menu prices.
Are your operation and your supply chain as optimized as they can be? Are your receivables too far our? Do you have the best possible terms with your vendors? Are you reducing, reusing and recycling? Can you be selling your recycled materials? Are you leveraging technology to streamline operations and increase your marketing reach?
What is your long range plan? Instead of hoping to be bought out, should you be looking at acquisitions? Should you lengthen your timeline for executing your exit strategy? Has your competition left investors dissatisfied with them but keen on your industry and looking for the best place to put their money now?
Discover the Opportunity
In the Great Depression, my grandfather lost everything but was able to cash in a life insurance policy. Realizing it was the only financial instrument that had any worth he became a life insurance salesman and went on to run his own agency.
You, too, can put on your creative cap to uncover new opportunities emerging through the shifting economic dynamics. Within your own business, are there new markets, new product or service offerings that you should be exploring? What new markets are going to be spawned?
Despite the bashing alternative fuels are taking for influencing food prices, it's nowhere near as strong as the pressure to reduce dependence upon foreign oil. Alternative fuels, battery-powered vehicles, and alternative commuting options are all areas that will see an increase in new opportunities. Rising food costs are triggering an increased interest in backyard gardens, home-baked bread, sustainable diets, locally-grown foods, new dietary balances. These will spawn new web sites, books, personal chefs, diet coaches, and gardening experts, to name a few. The defense industry, the current election campaign and the installation of a new presidential administration all offer potential for growth in different ways.
These are just some of the more obvious opportunities on the horizon and the economically viable, fiscally sound ones will succeed. It will take innovators to see the light, and savvy business practices to bring them to fruition. Take off the rose-colored glasses, roll up your sleeves, get creative, get smart, and make your move. And remember that now, more than ever, every move counts.
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 What Can You Do?
Be brutally honest about your self-assessment. Get outside perspectives on your own business and your industry to aid in objectivity. Encourage internal and external people to think outside the box, and, more importantly, listen to what they have to say. Share the results with key decision makers and managers.
Develop a strategy that enables you to work from confidence, not panic. Share this strategy and the reasons behind it with those who will help execute it. Don't just include where to cut costs, but intentionally plan to invest in marketing and other areas that can help you grow.
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Ask the Expert
Question
I'm scared. For the first time in my career, I'm scared for my business and for me. Corporate bankruptcy seems to be all around me? What do I do?
Answer
First, you are not alone in being scared. However, taking a cold, hard look at your situation should help you assess your prospects realistically, and develop a strategy to conquer the situation. You are the only one who is going to get you out of this situation. Use the fear to motivate you, not to paralyze you.
Submit your questions to the editor: molly@visionsmc.com
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