Less gloomy, businesses begin to assess processes
The change in mood is subtle - and likely could be done in by one of those Wall Street plunges or, perhaps, an actual flu epidemic - but both Russell Wilson and Paul Vragel detect some positive stirrings in the small and mid-size business sector.
"Business owners seem less pessimistic. Things haven't gotten dramatically worse, and some (contractors) are starting to see some new orders," explains Wilson, a partner at the Elk Grove Village accounting firm of Porte Brown, LLC.
Maybe more encouraging for the long haul is that "manufacturers are starting to look at their internal processes, their cost of goods sold" as they think about positioning themselves for better days, Wilson says.
Vragel, president of 4aBetterBusiness Inc., a Northfield process performance consulting firm, agrees that "forward-thinking companies are seizing the opportunity to take cost out of their operations (by) streamlining processes and eliminating complexity - and positioning themselves for higher profitability when the economy starts to turn around."
Whether you're a widget maker or service provider, taking time now to review internal processes and procedures makes sense so you're ready when better days come.
In fact, Wilson encourages clients with resources to "go get market share (now) from weaker competitors," and Vragel has a list of steps to take to tighten operations.
"Start with what you actually do - not necessarily what you think you do and not what you thought you were doing five years ago," Vragel says. "It's a self examination. Look at the whole system.
"Look at all of your customer touch points - and understand the messages you're getting, especially about changes in customers and markets."
The next step, Vragel says, is to "examine processes across your business - not for control but for the flexibility that will allow you to make changes to better meet customer needs.
"Find and eliminate the sand in the gears in your operating processes and practices that is costing you money," he says.
Finally, Vragel says, "Review the profitability of each product and service you offer. Know where you're making money."
Wilson suggests looking at each segment of your business with an eye toward shutting down those that are "bleeding dollars." Similarly, he says, bring your work force in line with sales.
That may require cutting non-essential payroll. Or, if you've cut but the employee count and sales remain out of balance, consider a four-day workweek. A shortened workweek, with shortened pay, is a good option, Wilson says, if you have employees you want to protect - longtime workers or those whose skills will be needed as business comes back.
A shortened week rather than firings tends to be "more fair - and to emphasize to employees that we're all in this together," Wilson says.
• Questions, comments to Jim Kendall, JKendall@121MarketingResources.com © 2009 121 Marketing Resources, Inc