Be Ready to Ride the Recovery Wave

A “slow, trudging” recovery is underway, according to Former Federal Reserve Chairman Alan Greenspan. With the economy showing some signs of improvement, now is the time to position your company to reap the benefits of improved conditions. Although you can’t predict exactly when a widespread recovery will occur in your industry and geographic region, you can prepare for it. Here are five questions to help your business get ready to surf into better times ahead.

FIVE QUESTIONS BUSINESS OWNERS SHOULD ANSWER NOW

The recession has “bottomed out,” former Federal Reserve Chairman Alan Greenspan recently stated. But he warned that the recovery will be “slow” and “trudging.”

Although the comments of Greenspan and other economists are cautious, they are good news for struggling business owners who are waiting for a return to prosperity. With the economy showing some signs of recovery, now is the time to position your company to reap the benefits of improved conditions.

Here are five questions business owners and executives can answer to help assess their readiness to take advantage of upcoming opportunities and challenges.

Question 1

Have the “wants and needs” of your customers changed?

Depending on the type of products or services that your company provides, your customer’s expectations may have changed during the recession.

For example, a number of restaurants have changed their menus to accommodate cash-strapped diners and lunch-time customers who no longer have unlimited expense accounts. In order to attract business, they’ve added lower-priced options and started running coupons and offering other specials.

Once the recovery is in full swing, will diners continue their belt-tightening ways? Consider administering a survey to determine if your customers’ requirements have been altered by the recession, and consequently, to learn what extent your company needs to change to meet and exceed their future expectations. (See bottom right-hand box for some examples of survey questions.

Question 2

Are your employees, as well as the leadership team, ready for the recovery?

During the recession, your company’s leadership has most likely spent considerable time and effort dealing with a number of difficult and complex problems. To make matters worse, your company may have been forced to downsize. As a result, the overall morale may be low.

In order to deliver the goods and services that customers want, employees and the leadership team must remain motivated and focused on the right goals. Now is the time to communicate with employees at all levels the goals and expectations for the coming year.

Focus specifically on what the company is doing to thrive in the coming months and years. Frequent, upbeat communication will motivate employees and direct them to focus on the future and not linger on the past.

Question 3

Does your company know where to invest newly available capital?

As sources of credit become available or your company generates more profits, it’s important to have a rigorous process in place to quickly determine where to invest capital resources to support long term growth.

Consider developing a list of critical projects ” in order of importance ” which will contribute to the long term profitability of the company. If a formal approval process for capital projects does not already exist, it’s a good time to create such a process.

Question 4

Does the company’s existing technology meet your needs?

During the recession, many companies have deferred or cancelled investment and maintenance of their technology infrastructure. As the economy improves and business picks up, that lack of investment may become apparent, especially if your competitors have chosen not to forgo investing in technology.

Coordination is a key factor when planning ahead, especially if your IT budget contains only modest increases. Ensure that technology investments made throughout the company complement each other, and support the quick, efficient exchange of data throughout the organization.

Question 5

Do you have a plan to hire, motivate and retain employees?

As the economy improves, the demand for talent will increase dramatically. Consider conducting a “talent inventory” that identifies which employees you must keep, which employees you would like to keep and which employees you would be comfortable losing. This exercise also helps your organization determine where new employees are needed.

Develop clearly defined requirements regarding the type of employees that you wish to hire and the wages that are needed to attract them. Taking the time now will dramatically reduce the probability of hiring the wrong individuals later.

Thriving during an economic recovery is much easier than surviving during a recession. But no matter what is happening with the economy, it’s important to have a plan. The steps above can help guide your company in the coming weeks and months.

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TAP INTO THE POWER OF SOCIAL MEDIA

As you assess your company’s readiness for the recovery, it’s a good time to examine social media tools, which have moved to the mainstream of consumer communications. Your company’s brand can be strengthened or weakened with tools including blogs, Twitter, Facebook, LinkedIn and YouTube.

Even the most successful businesses using social media sites have found they can be a double-edged sword. For example, Dell has made millions of dollars using Twitter and Facebook to sell refurbished computers and electronics. But Dell has also experienced the wrath of irate consumers who use the sites to post comments about delays in orders.

The Internet has allowed consumers to create perceptions about what a company sells and how well it takes care of customers.

Here are a few social media tips for businesses:

Position yourself as an expert.
Provide tips and advice related to your industry. This allows you to provide insight and value to customers, which can lead to trust and respect.

Allocate the proper time and resources.
Many companies signed up for social media services and then abandoned their pages. Perhaps they didn’t see results right away or felt maintaining a presence required too much time. In some cases, they put an intern in charge or gave the task to a staff member to handle when there was free time.

But letting your company’s profile languish for weeks or months might cause customer comments or complaints to go unanswered. It may look like you don’t care ” or even that you’re no longer in business. As with all marketing, social media should have a clear strategy. To protect your company’s reputation, appoint a knowledgeable person to nurture and monitor all sites where your company has a presence.

Use keywords effectively.
When looking for your company’s products and services, what keywords do customers type into search engines? Use those same words in blogs or when writing online. Optimal keyword use can improve the chances that your organization’s name will be toward the top of search engine results.

BUSINESS WISDOM FOR TODAY’S ECONOMY

Conducting a survey can illustrate how customers view your business, as well as identify opportunities and problems. Questions to consider:

Overall, how satisfied are you with our company?

Would you purchase from us again?

On a scale of 1-10, how would you rate our customer service?

Which of our products and services do you plan to purchase in the near future?

Are there any products or services we do not provide that you would like us to begin offering?

Would you like to hear about our specials via e-mail or social media Web sites?

Would you recommend us to others?

Do our sales reps suggest solutions to solve problems or make your life easier?