As we enter 2011, what competitive edge does your business have ?
One you may not have thought of is how you view the economy for the next year or two. Far too many of us, influenced by mainstream media and our peers, are irrationally optimistic about the chances for an economic upturn.
Many years ago, as a young accountant preparing annual budgets, my CEO warned me not to allow department heads to “turn wishes into projections” when they gave me their figures for the next year. Too many business (and governments, for that matter) are doing just that.
Newsflash. Things won’t magically get better in 2011 just because we’ve had a rough few years up until now. To illustrate graphically (quite literally!), this chart of New Home Sales from 2000 through the end of 2o1o is an ugly sight, viewers with rose tinted economic glasses please turn away now :
For more on this, visit Pragmatic Capitalist
Still with me ? Then we’ll continue.
So, what competitive edge could there be for you from taking a dim view of the recovery ? Well, if you are right and others are being too optimistic, then your edge is potentially a big one.
Instead of “chasing ghosts” in a flat market by spending money on trying to gain new customers and revenues, you can be spending your time and resources in ensuring you are prepared for the inevitable upturn when it does inevitably arrive.
What shape, then, should your preparation take ? It all depends on the unique situation of your business or organisation (I’m spending much of my time with clients coaching them in specific areas that match their unique needs, and each are different). However, a few thoughts to ponder that are pretty consistent for all :
- Positioning / Branding. Are you clear on who you are ? “Start with Why“.
- Cashflow and Operational Efficiency. Cashflow is king, and you can’t hold on to resources any longer hoping for a quick upturn, so now is the time to get as “lean” as possible and to focus on being efficient and scaleable for when things turn upwards, as well as to continue to survive now so you can thrive and capitalise later.
- Content follows Eyeballs. Marketing is changing forever. Simply broadcasting conventional advertising isn’t enough, and neither is selling in isolation. For many, it is increasingly critical to be a “trusted source” for your existing and future customers, and that means “Engagement is the new Advertising” should be the mantra. Now, it takes time to build quality and long lasting content that creates and maintains that engagement, so do it now, in this period where both leads and conversions will be tough to get.
There is much more to add to how best to handle a “flat” year, but if you start with these three pointers, you can see how you’ll be well positioned to capitalise on opportunities when the economy becomes more positive.
In the meantime, if you do one thing, please don’t turn wishes into projections for 2011.
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