Synergy and momentum matter.

Just as there is arithmetic to recovering in the investment market, there is a logic and arithmetic involved in business recovery. Specifically, it’s often easier to lose ground than it is to win it back.

In the investment market, if you lose 40% of your $10,000 investment, you have $6,000 left. When that remaining investment adds 40%, you have… $8,400. What a bother.

Similarly, a recession can create business losses that are challenging to recoup… and they aren’t all strictly in the numbers.

For example, a large business customer may pull its business “temporarily” during a recession. Getting that customer buying again can be an uphill battle. Getting the customer back to or above its previous level of purchasing can be even tougher. During the customer’s hiatus, it has probably been courted by your competition, with great deals, low prices and – gulp – perhaps a fresher approach.

Many businesses reduced their marketing and hence shrunk their visibility during the last difficult quarters. Now they need to regain what they’ve lost in terms of being “top of mind” – ramping up marketing will require serious, insightful and ongoing effort now if it’s been shelved or minimal in the last year or two.

Were your engineers busily designing the next great thing during the slowdown? Great – you can come out shining. However, if the malaise meant that R&D was stalled and that even the best minds in your company were dulled by lack of sales and incentive, it’s time to refresh your approach and your offerings, because your competition will or has done so already.

Has the sales team been keeping in touch with all its customers and prospects, or has it, as in the infamous sales saga of Glengarry Glen Ross been waiting for the “good leads” and better times? There is no time NOT to be selling.

Today… while the past certainly affects your firm, days gone by matter now primarily as a lesson. Starting today, you have the need and you’ve absorbed the arithmetic. You know that a concentrated, energetic and smart effort distinguishes the companies that will soon regain their momentum and reach new heights from those that will not. This is true even if your revenues are down, your staff is reduced and you’ve borrowed money. It will take more work and more applied intelligence to gain ground than it took to lose it, just as it does in the investment market.

How is your company addressing the recovery? Please comment or email us privately with your thoughts.

You're prepared for all contingencies... right?

A saying from a friend: “The best boat pump in the world is a sailor with a bucket… in a very leaky boat.”

So true. In the last recession, spanning the years 2000-2001, our company started out with several sales professionals. We ended the recession with just one… that ONE was me. I believe I represented the sailor with a bucket. Who more than the owner of my small company, after all, knew how much bailing how many sales were required? This time around, the entire van Schouwen Associates staff is truly engaged and actively involved in seeking and leveraging all opportunities. In other words, we have more sailors with buckets now. This is better.

Of course, I keep making the mistake of looking at the Dow Jones Industrial Average, which is one global representation of the water level in our collective economic boat. The DJIA is currently under 7,000, pretty dismal, eh? I hope by the time I hit the “publish” button for this blog entry, it has gone back up. (Really, aren’t we running out of patience for this?)

You know best what bailing your own boat means to you. Perhaps, literally, it means your job isn’t what it used to be and you need to… sorry… BAIL and get a new one. (Okay, I won’t play with the word “bail” anymore, really. Don’t go. I’ll say “necessity” instead.)

For our company, necessity means we continually strengthen our prospecting and outreach efforts – something I think we’re good at anyway – because we need to keep the phone ringing. To accomplish this, we’re working our butts off. Not to put too fine a point on it.

Economic conditions now are enough to give even the most seasoned businessperson heartburn. Some of the events flashing before our eyes feel unprecedented, at least in our time.

But wait! Remember that, historically, every market reaches its bottom and is then followed by a new era of growth and spending. Also, note that most of our recessions don’t last terribly long – in fact, the National Bureau of Economic Research cites 10 months as the average duration of recessions since 1945.

In the meantime, every business has important choices to make about its approach to marketing. Surprisingly, treating a downturn as a business opportunity is a smart course of action for many of us.

Recently, we’ve been asked for our recommendations on this topic by several business publications (including a recent BusinessWest article). So, here in a nutshell, is our advice (normally a $999 value, but yours FREE today…)

Focus on customer relationship management to make the most of a down economy.

When times are tough, potential customers get wary. Deep down, we know companies will sell aggressively, often with little regard to our needs. (Oh, that reminds me – I need to return that clothing steamer I saw on TV for just $19.95 – don’t let me forget.) The best marketing in such times counters prospects’ and customers’ fear of being “had.” Now’s the time to build and enhance relationships.

In any economy, there are reliable ways to assure that your customer relationship management efforts – including print or interactive newsletters, public relations, online surveys and client roundtables, targeted mailings, and a heavy dose of Web outreach – yield loyal customers, eager prospects and a stellar reputation that will mean sales now and for years to come.

Learn from customers and prospects. Make sure your outreach “listens” as well as talks – hearing what your targeted customers have to say lets you effectively support them. Make sure the products and solutions you offer are relevant – if they aren’t, now is in fact the time to reinvent the wheel.

No network of viable prospects is too large. Enlarge your network of customers, prospects and influentials, establishing that you are the one source they can turn to – and always get what they need.

Solve problems. Offer prospects strategic support, addressing their challenges. Inform, advise and recommend appropriate solutions only. (‘fraid so! Don’t try to unload any old albatross product now…)

Remember the future is still bright. In a recent Fortune interview, Warren Buffett expressed his confidence in the United States’ long-term economic prospects, “The American economy is going to do fine. But it won’t do fine every year and every week and every month…. I mean, we get more productive every year, you know. It’s a positive-sum game, long term.”

Be ready. A 10-month recession – or even a longer one – will be followed by pent-up demand for products and services. Make sure you’re top-of-mind by staying in front of customers and prospects now.