The Current Economy -- Making the Best of It!

November 24, 2008.  Every thing is not horrible! Economic downturns just happen. They're cyclical. Now is not the time to join the crowd and complain about how bad it is in today's business world. Now is the time to do some of the things in our companies that we should have done before. In fact, you can use the current economic downturn to be a better company with an increased share of market and well positioned for when the economy improves -- and it always does.  

Here are six basic steps you should take:

1)   Review all of your overhead expense items. What items can be completely eliminated? What items can be reduced? Be tough in this exercise but also be realisitic.

2)   In my book HVAC Spells Wealth, pages 126 and 127 I wrote about my "A, B, and C Coworker Principle". Go back and read those pages and then take action. You don't need "C" coworkers. You need only "A" and "B" coworkers. Now from a peer standpoint the "B" coworkers can no longer be influenced by "C"'s. They don't work there any longer. 

3)    Owners and leaders must now really step up! Remember, the things you talk about including the issues you bring up for discussion and your behavior will result in the actions of your coworkers. You set the tone of your business. If you talk about how bad everything is -- it will be bad! You must be positive and be diligent about recognizing and encouraging your coworkers.

4)   Stay in touch with your customers, more so than ever. Direct mail using attractive cards and newsletters is a good method of doing this.

5)   Examine your portfolio of products and services. Be creative. Are there any additonal accessory products you should add to your offering? How about diversification into the light commercial market? You may want to order our recently released book HVAC Light Commercial Service Agreements.

6)   There is one expense item you should not reduce! It's your marketing and advertising expense. With many companies that's the first expense item they think of reducing. Your 2009 revenues may end up being flat or even down some, but if you keep on marketing when the economy returns you'll have a significantly larger share of the market.

Here is to your success -- life is good!