Course Changes Caused by Tough Economic Conditions Require a Strategic Business Leader

It’s scary when your plans are no longer realistic because of economic challenges, such as the current recession, which are outside your control. But, don’t let fear get in the way of business success. Fear typically sets up a barrier that can make you shortsighted and stop you from doing the things that are within your control. In turn, this inaction can paralyze employees leaving them feeling overwhelmed. If you do feel fear, don’t let your employees see it. Radiate an unshakable belief in success and your employees will feed off this and respond positively to your course changes. Employees need confidence in their leaders; thus if you have doubts and fears, share them in confidence with your fellow TAB Board members.

Changing Course during tough economies requires strategic thinking, a planning process and a business leader ready and able to make the tough decisions. Focus on what you can do about the problems your company is facing. For example, one of the areas you need to identify are "sacred cows" that need to be eliminated. Often these “sacred cows” are initiatives that should not be continued under current circumstances. However, the decision that leaders can’t—or won’t—make is to let the money and the human resources time invested in the initiative go down the drain. In some cases, the original decision to fund the initiative was a mistake and the business owner has a problem admitting they made a mistake.

Many of these business owners don't take the right action to eliminate the “sacred cows” because they think such an admission will take away from the respect their employees have for them. This couldn’t be more incorrect. Typically, all it takes is admitting you made a mistake and then executing a course change that works to earn the respect and cooperation you need to succeed.

If your business plans are no longer feasible, you’ll only be seen as a failure by your employees, lenders and customers/clients if you continue to try and make those plans happen. So, create course changes that inspire employees to make the changes succeed and show everyone that you are a Strategic Business Leader.

Sales Facts In a Recession

When facing a recession and business owners are forced to re-evaluate their business strategy, marketing is often one of the first areas in an organization faced with cuts. However, TAB business coach, Allan Himmelstein, recently published a blog article discussing the following sales facts in a recession to help ensure your business success:

“Recession Fact #1
Sales people need 20% more prospects to stay even. No one can rest on their laurels, or think that a sale is coming in. Do not assume. Get as many prospects in that pipeline as possible.
Recession Fact #2
Companies that significantly reduce Sales & Marketing in 2009 will be gone in 2010. This is a strong statement, but justified. I would like to add that Sales will not cure all ills. Cash Management, personnel, and making sure you are touching base with all aspects key to your business is a must. Do not accept mediocrity from yourself or your people.
Recession Fact #3
Why do we lose sales? 22% of deals are lost to “no sale.” Don’t chase garbage, select better targets. Use a score card to identify good customers. This is so true. I do not know how many business owners I asked, who their target customer was, and they had no real idea how to identify. The statement that everybody is my potential customer is just not true. Benchmark which customers generate the most and are easiest to have and target new ones just like them.”

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