Now for my 6 practical ideas to help you thrive in economic winter: 

#1. KNOW AND WATCH YOUR KEY FINANCIAL NUMBERS, especially cash flow.  With tight credit and less options available for cash, you need to be keenly aware of your cash position.  It should be checked at least monthly, and maybe even weekly and daily depending on your business.  You also need to be proactive in planning your cash flow and set logical trigger points in your budget to drive your business decisions.  When the plane is in the fog, you need to fly by the instrument panel and not the way you feel. 

#2 MAKE CUSTOMER SERVICE A TOP PRIORITY.  Delivering value is imperative.  Customers will be considering what is valuable and important in their life and what is not.  Mediocre service and a lax attitude is not a good thing in any economy, but it will destroy your business in tough times.  Your current loyal customers are your lifeline – hold them close and treat them accordingly.

#3 SELL, SELL, AND SELL SOME MORE.  Now is the time for you to focus on getting that sales conversion rate through the roof and massively increase sales.  Increasing sales is the means to increasing cash flow.  If your business is near capacity, then INCREASE YOUR PRICES.  That will create more profit, increase cash flow, and also free capacity for value based (not price based) buyers.

#4 TRIM THE FAT. It’s time to take a close look at your cash flow, budget, and team and trim away the excess.  But it’s not time to get out the hatchet and start to fearfully chop and destroy your business in a panic.  You need to be a surgeon and strategically dissect away the little foxes that eat the vine. 

#5 LOOK FOR GREAT PEOPLE. The market will likely be flooded with great people looking for a job opportunity.  Many larger organizations will downsize, and turn some great people out into the market place.  If you have been challenged to find great employees in the past, this may be the time. 

#6 LOOK FOR OPPORTUNITY TO BUY DISTRESSED BUSINESSES.  There will be some great small businesses that will be for sale.  Entrepreneurs who are looking for opportunities will be ready to take advantage.

Finally, this is the time to strengthen your relationships with your business support team.  If you don’t have an accountant, financial advisor, business coach, and attorney to walk with you through this storm, go find them.  It is important that each support team member also carries an “opportunity” perspective as well.  A great set of advisors provides that outside perspective and balance to help you make the best decisions.  Champions have always surrounded themselves with great people.

So look for the abundance of opportunities in this challenging season, and get ready for a great spring!  Remember, you WILL find what you look for. 

If you would like to learn more about maximizing the performance of your business call Ohio Business Coach, Ralph Berge, 440-838-0991, Business Coach of Akron Canton.

In many ways economic cycles are like the seasons of the year.  It appears that we are headed for a heavy (but improving) economic winter season.  Winter is not bad.  It just requires preparation and an appropriate response to make it good.  In fact, if you like winter sports like skiing, you look forward to the fun that comes with the change of season.  

A fundamental principle for facing any challenge is to understand that the circumstances are neither good nor bad.  It is your response to circumstance that turns that circumstance into a fun adventure or a devastating disappointment.  It is essential, especially in challenging times, to be ready to create, change, and innovate.  People who are filled with fear, worry, and distress are not in a creative frame of mind.  Remember that spring will eventually come, and how you respond in winter will prepare you to plant in the spring. 

So first, let me offer some thoughts about mental attitude.  A positive attitude is the number one ingredient for thriving in these tough times – not just surviving, but thriving! Difficult times provide an opportunity for you to become a leader.  As the majority moves down, you move up, which makes you attractive.  Times like these provide a platform to display character qualities like perseverance, hope, and determination. Hardship and difficulty will either make you bitter or better.  It is how you choose to respond that determines the result. 

Perspective is a key.  Do you see problems, challenges, or opportunities?  The fact is you will find what you are looking for!  Are you searching for a dirty piece of coal or a beautiful diamond?  Are you a whiner or a miner?  

If you would like to learn more about maximizing the performance of your business call Ohio Business Coach, Ralph Berge, 440-838-0991, Business Coach of Akron Canton.

If, as a result of the current economic times, you find yourself heavily cutting back on your marketing budget, it does not mean that you also need to cut back on your marketing campaigns.  Marketing is paramount in these times of economic distress.

How do you keep your marketing efforts alive despite a dwindling budget?

“That’s a good question, Ralph…”

There are many marketing activities available that are free or have a minimal cost with a relatively high return that businesses can effectively employ to remain in front of customers and keep competitive.

Here are my top seven low/ no cost marketing ideas that can help you survive and even thrive through these times.

1.       Networking – Networking with local business groups, local ‘service’ groups such as The local Chamber of Commerce, Round Tables, Lions etc, or even at your children’s school or the church, etc. is a great marketing technique that does not cost a thing.

2.       Referral policy– Ask your existing customers to recommend you to a friend and, if necessary, give them some form of reward (high perceived value to them, low cost to you) for doing this.

3.       Targeted Direct Mail – A carefully written letter sent to a targeted list and then followed up to increase response rate can work wonders for your business.

4.       Marketing Collateral– Leaflets promoting all your services included with invoices or direct to your customer base is a cost-effective marketing technique.

5.       Email Newsletters– While it can cost a bit to set up a template, email newsletters come with only a small cost to use as long as you have the time to write the content yourself. There is no postage associated and these are free to send.

6.       Free Poster Signs– Post signs on your vehicles – you have a free poster site, why not use it!

7.       Internet/Online Marketing: There are a  plethora of free/ low cost options available online, such as blogs, social media, membership communities like Facebook, MySpace, Twitter, etc. where you can market your products and services. YouTube can be used effectively to demonstrate your product and with the help of social media tools, these videos can reach a newer, wider audience.

It is important to remember that “axing” your marketing budget does not mean that you also stop your marketing activities. The biggest mistake business owners make during a recession is to cut or stop their marketing activities. Using these free, low cost marketing techniques will help you and your company stay afloat during these chaotic times.

If you would like to learn more about maximizing the performance of your business call Ralph Berge, 440-838-0991, Ohio Business Coach

One of the more common complaints I hear from business owners how the competition getting tougher every day. The fact is that competition won’t disappear and competition is good for you because it makes you better. But you need to build effective strategies into your business that can reduce the competition’s pressure on your business.

Let’s look at the fundamental approaches: First, defining your Unique Value Proposition (UVP) and having a written Guarantee.

Unique Value Proposition is also known as a Unique Selling Proposition (USP). Many use the terms synonymously. Personally, I like the term “value” vs. “selling”, because at the end of the day, the reason your customers buy from you is the overall value you provide, not just what product/service you are selling.

To define what a UVP is, break down the phrase and define each word: Unique – what distinguishes you from your competitors. It’s the “what you do” and “how you do it” that differentiates your product/service.

Value – what your customers get for their money or the intrinsic worth of your offering to your customers. It’s also important to note that value is in the eye of the beholder, and what we think our customers’ value can be very different from what they really value.

Proposition – It’s your proposal to your customer. It must be truthful and you must be able to qualify and quantify your claims and makes your UVP that much stronger! Your UVP is a distinctive message aimed at your target market. Your customers must believe they are getting more than they are giving up (perceived value) in relationship to other alternatives, which includes buying nothing at all.

Does your business have a UVP? It’s amazing how many businesses don’t, or if they do, they clearly don’t communicate it to their target market. If your UVP needs some updating (or if you don’t have one at all), then it’s time to do some market research. Take a look at your competition. You need to know what they are offering. And, you need to know what your customers (and prospective customers) value, why they value it, and what result it achieves for them.

An effective approach is to contact twelve of your top customers. Ask them why they buy from you and what makes you different from your competition. They will give you your UVP (but in their words) and will likely provide reasons and insights you never knew or expected. Additionally, competitive research can also complement and refine some of the information you receive from your top customers and help you better define your UVP.

Talk with Ohio business coach and Certified Exit Planning Advisor, Ralph Berge. Call him 440.838.0991.

Generally, for a succession plan to work, the main concerns about death, disability, and retirement must be addressed early and often. However, please do not ignore the potential for catastrophic loss of principal family members or key people. Therefore, create a plan that addresses the following questions:

·         Who is going to operate the business, make day-to-day decisions, pay bills, sign checks?

·         Who is going to own the business, and in what format?

·         What steps must be taken to ensure continuity, and which advisors need to be brought on to the transition team to make sure it happens?

·         Has the business buy-sell agreement been updated, and are realistic valuation techniques in place?

·         Is the buy-sell agreement properly funded?

·         Will there be adequate liquidity to continue to operate the business when the founder steps out of the picture and still provide for an equitable distribution of ownership interests?

·         Will non-operating heirs be satisfied with reinvesting the profits back into the business to expand? (If not, managers face a shortsighted process of carving out value for income.) Or will heirs take the first good offer for the business and head to warm and gentle climates?

·         Can the operating heirs buy out the others in a fair exchange of value for control?

·         Can all this planning be done in a tax-efficient manner without disrupting the business?

·         If there is a family heir anointed as successor, does this person have a grasp on the business operation and its employees, suppliers, credit worthiness, and customers?

·         Do the heirs have the capacity and training to make decisions and keep the company moving forward with the full confidence of the other family members? Alternatively, is there a key employee or outside manager available to hold the business together? 

 Most companies fail within a short time of their inception. Family-owned businesses have a tradition of being more durable, but it takes special care and a lot of extra effort to overcome the hurdles and succeed for the next generation. Start the process early and you’ll be able to preserve a lifetime of family work for the future. 

Decide to action today. Talk with Ohio business coach and Certified Exit Planning Advisor, Ralph Berge. Call him 440.838.0991.

 Start today and take the following steps:

1.       Fix a departure date.

2.       Determine your financial needs.

3.       Decide whom you want to succeed you.

4.       Have your business valued to see if: a) should you sell today; and/or b) it has the value necessary to meet your financial and other exit objectives. 

Based on your objectives and the realities of your business, use a skilled Exit Planning Professional to forge a plan with accountability/decision deadlines. 

Deciding to do something now to create the best possible exit path is not difficult. The failure to act, however, can potentially be fatal to a successful exit. The success of your business exit is simply too important to you (your family and your employees) to leave to chance. Why wait? Why decide not to decide? 

Decide to take action today. Talk with Ohio business coach and Certified Exit Planning Advisor, Ralph Berge. Call him 440.838.0991.