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It's time for every business to do some sober soul-searching
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It's time for every business to do some sober soul-searching

How are successful businesses coping with the longest and deepest downturn since the Great Depression? More importantly, what sets them apart from their competitors?

Successful businesses and those weathering the storm have some things in common. They have solid business plans and their strategic plans have been reviewed and more than likely revised. Most companies have had to review everything from the products and services (the what) to the viability of the vehicles being utilized (the how) and purpose (the why). It has been an interesting time as we've all had to complete this exercise. We've had to dust off our Business 101 books and get back to customer service basics.

If you haven't already done so, now is the time to do the following:

  • Review purchasing procedures

If you buy the same products and services throughout the year, research other vendors to ensure that you are getting the best value. If you find a cheaper price for the same product you may be able to negotiate with your current vendor to match the competitor's price. Office supplies tend to be an expense line item that can get out-of-hand if you're not diligent about watching these purchases. Too often, employees will each want a specific type of paper pad, notebook, pencil, etc. while the onesize- fits-all concept will work for everyone and save money at the same time.

  • Review marketing plan

Many companies have tightened up their budgets; however, this should not mean that you have to cut your advertising and marketing line items to zero. This is the time to review your current marketing plan and make adjustments to it, satisfying your budget constraints while keeping your company's products or services visible to the customer. Too often, this is the expense item that businesses will cut and unfortunately will do nothing to improve the bottom line. When business is down, keeping your brand out in the public is paramount to future success.

  • Review staffing levels

Personnel costs make up the majority of the cost of doing business. Unfortunately, with the economic downturn most companies have had to make painful cuts, many of which have cut into the culture of the business. Salary and benefit costs continue to rise and keeping good employees is critical to your company's success. It is the time, though, to analyze the effectiveness of your current staff. Is it doing the job they were hired to do? Does it represent your company well? If not, you can't afford to keep nonperformers during a down economy. On the other side, don't cut staff with the intent of cutting costs at the risk of hurting your customer service. Whether you lose customers because of nonperforming employees or because you have insufficient staffing, your company's reputation and subsequently your bottom line will be affected when you can least afford it.

  • Root out complacency

Have you or your staff become complacent? This is not the time to rest on past successes that can produce a false sense of security. Continue to demand of yourself and others first-class service and good business ethics. Continue to look at ways to reinvent yourself.

  • Review operating costs

It is a lessee's market and a good time to renegotiate upcoming lease renewals. Commercial office space vacancies are at an all-time high and many landlords will work with responsible current tenants rather than risk losing them. Before talking with your landlord or leasing agent, be sure to do your homework and know what other properties are offering.

  • Examine telecommunications needs

Are you still paying for unused fax and voice lines? Depending on the size of your company, terminating these lines can save you a couple of hundred dollars a month or more. Also, look to bundle your services with the same company. Doing so can be a significant money saver.

The old saying goes, "work smarter, not harder." In today's environment we must do both. Simply working harder without changing how we do things will not get us the results we desire.

Sharon Powers is president and chief executive officer of the North Las Vegas Chamber of Commerce.

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