Business

<< Previous   of   Next >>   ADVERTISEMENT   Related Stories • Dropping 401(k) help sets scary tone 11/3/08   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Monday, November 3, 2008 Ideas for businesses to survive hard times By Pat Sisneros and Lynne Munoz In our last column, we solicited comments on business conditions and ideas on how to survive economic turbulence. We have also been searching our favorite business Web sites and blogs for ideas. The Greater Marysville Tulalip Chamber of Commerce recently surveyed its members and found, not surprisingly, that national economic factors such as subprime mortgage lending have hit local area builders, developers and suppliers hard. "The survey results were a mixed bag," said Caldie Rogers, president and chief executive of the Greater Marysville Tulalip Chamber. "For example, preventative services such as auto maintenance and dental care have declined, but computer maintenance requests have increased. People want to fix what they already own rather than upgrade." "Businesses are concerned over the health of their neighboring businesses and community as a whole," Rogers said. Marysville businesses aren't alone. We found an interesting blog entry on the Wall Street Journal Online that highlighted survey results from AllBusiness.com of 305 small and medium businesses on how these companies have cut costs in the last 12 months. Almost half reduced office supply expenditures. Employee travel is also taking a hit; 41 percent of companies encouraged employees to do conference calls instead of in-person meetings, and 36 percent cut back on employee business travel. Encouraging employees to drive, rather than fly, was another cost-saving measure. A quarter of companies cut back on employee perks. The same number were forced to let go of one or more employees. Sixteen percent have not implemented any cost-cutting measures. We also believe the discussion between Seth Godin and Tom Peters (two of our favorite business writers) at a recent Inc 500/5000 conference on small business to be helpful in thinking about potential ideas. The video of their conversation can be found at www.openforum.com. Search for "election small business." But of all the numerous conversations we have had with small business owners this past week, Travis Snider's e-mail to us summarizes these discussions best. Travis is the owner of BETS Consulting, a business consulting firm based in Mill Creek. He is encouraging his clients to continue their marketing efforts, but be aware of where customers are coming from. And make sure to measure the return on investment for advertising. Snider also sees an opportunity for businesses to "get reacquainted with your best customers. Find out what more you can do for them," he wrote. Next, companies should conduct a "cut the fat" exercise. There may be spending that isn't necessary, he explained. His next piece of advice is especially important during tough economic times, but small businesses should remember this during boom times too. "Make sure you have an updated forecast showing your expectations for revenues and net profit," he wrote. "Prepare financial statements monthly and compare to the forecast. Take action immediately when results don't match expectations. Work to stay on your 'plan.' " For employees, business owners should evaluate their staff to make sure they have the right people working for the company, and that they've been trained accordingly, Snider wrote. This is especially important for customer service training. Employees can also play a crucial role in keeping a business profitable. "Engage your employees in productivity improvements," Snider suggested. "If you allow them, employees will have most of the effective ideas in your shop. Give them a chance to help you." Last, he encouraged his clients to set performance goals for everyone and to hold them accountable. "Even the boss," he wrote. On a final note, Everett Community College will soon offer a continuing education class, "Thriving in Tough Times: Proven Marketing Strategies for a Down Economy. Please contact John Bonner, Executive Director for Corporate Training at jbonner@everettcc.edu for more information. Pat Sisneros is the Associate Vice President of Administrative Services at Everett Community College. Lynne Munoz is Director for the School of Business Design. Please send your comments to entrepreneurship@everettcc.edu. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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