A Method for Growth in Times of Uncertainty

Let me share with you a tried and true approach to seizing the day during times of market uncertainty.

OK, now what? You clamped down on all hiring, spending and growth initiatives due to all the pessimistic economic reports, the fiscal cliff, healthcare reform, the Mayan calendar etc. and you have now entered a new period unscathed; what should be your strategy?

  1. Be optimistic – Uncertainty is often the new normal and  markets often continue to gyrate, however, there are often growth opportunities here and in emerging markets; therefore, THERE IS NO BETTER TIME THAN THE PRESENT TO TAKE A CALCULATED RISK.
  2. Revisit your customers – the 80/20 rule is real. Eighty percent of your business is bought by twenty percent of your customers. When was the last time you sat down with each one at their office? How are they managing in the new economy? Do they have any suggestions for product or service improvements?
  3. Complete a new SWOT analysis – The markets invariably change. It is essential to re-calibrate regularly your company’s strengths, weaknesses, opportunities and threats, to gain market insight and improve upon perceptions of your business and product offering.
  4. Get aggressive – Go after top-line growth opportunities. Research new markets, new strategic relationships, new product expansions that can grow your near-term revenues.
  5. Plan your cash-flows – How much working capital do you need to fund your existing business? How much cash-flow do you need to launch? Can you bootstrap with existing free cash-flow? Can you improve AR and inventory turn ratios?
  6. Set your targets higher – It’s time to communicate and challenge your whole organization to new revenue, margin and growth targets managed with a dashboard. Where do you want to be next year? Create stretch goals that are hard but achievable and make the reward worthwhile.
  7. Invest in marketing analytics – Sales has always owned the hard numbers, but with new analytical software offered to small and mid-market, marketing can now be attached to the sales organization by providing measurable qualified leads for sales to close.
  8. Hire or contract creative talent – You need “out of the box” thinkers to shake-up the status quo and infuse new innovation to your product development.
  9. Hire or contract a C-level rainmaker – There is no better person right now who can better help create new opportunities for your company. C-level rainmakers bring a wealth of contacts and strategic relationships to jump start new revenues and customers. And don’t worry. If the right hire, they will always pay for their efforts.
  10. Tap into your customer base – Your customers want you to exceed and will undoubtedly provide invaluable information on current buying trends. Offer to those closest a seat in unclassified product development meetings.

Carpe Diem.

Business Launch – 101

Below is a simple outline for a business launch. It’s the rough structure of a more comprehensive planning process and will give you quick insights into the new venture you may be considering…

What is the opportunity?

– Not a hunch but a clearly analyzed and defined opportunity with hard facts to support why there is a need for your product or service

– How big is it financially?

– What is your value proposition? (Contact me and I can explain) Can you explain it to me in 30 seconds? Why are you unique? Is your solution compelling? Why not another solution?

– Who is your buyer? Consumer of your product? Why? – Where are they? How do they buy now?

– What is your pricing strategy?

– Is this a one product wonder or are there multiple uses/expanding product-line?

How do I capitalize on it?

– How am I going to quickly capture the opportunity?

– What “net” or business model optimizes your profit? Prove it with hard facts?

What resources do I need?

– How can I gain control over them? Assets: technical/managerial expertise, strategic partner, patents, suppliers, inventory

– Capital/Funding – Boot-strap working capital, friends and family, angels, crowd-funding etc.

– What is your exact use of proceeds when you received your funding? How will you payback your investors?

What structure/strategy is best to capture my opportunity?

– What is your Go-To-Market Strategy?

– What is my optimum business model to capture and scale for growth? Why? Website? Direct- sales? Channels? Franchise?