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Businesses get economic survival tips |
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Friday, March 20 2009 |
By TJ HEMLINGER
Staff Writer
In today’s stressed economic times, small businesses also are subject to the difficulties that face giants like GM, Chrysler and other large companies.
Ken McCrory, regional director for the non-profit Indiana Small Business Development Center, offered some advice on business survival Friday at a Columbia City Area Chamber of Commerce luncheon at Parkview Whitley Hospital.
He said there are three vehicles for keeping afloat: counseling, training and education and creating an entrepreneurial network. The SBDC worked with 350 businesses last year on topics such as marketing plans and the financial aspects of small businesses.
“We’ve helped 58 new businesses in the last two years,” McCrory said. “That means jobs. There was $12.4 million in capital infusion.”
He offered some advice from his 87-year-old father: “Why worry? It doesn’t do any good. Take that energy and apply it to the problem.”
McCrory said the mayor of Butler, Ind., recently said there was too much negativity. Businesses need to adapt and change with the times.
The current bad economic times are part of a cycle, not the end of the world. McCrory said there are three strategies: pull back into a 100 percent survival mode, seek opportunities or pursue both and adapt.
He quoted Charles Darwin, who said, “It’s not the strongest or most intelligent, but those most adaptable who survive.” McCrory added his own caveat: “To be parochial, shortsighted and paralyzed results in obsolescence.”
He said there are three steps to being adaptable: examine the impact the downturn is having on your business, including marketing, advertising and cash flow; develop a plan/strategy to survive; and implement it NOW.
McCrory cited six strategies:
• Streamline your operations to the core;
• Keep your overhead low;
• Make lots of noise;
• Secure financial resources;
• Redefine your company; and
• Plan for the future.
He mentioned a company in Fort Wayne that cut out custodial services, security and IT, farming them out instead. McCrory said it was bad news for some but an opportunity for others.
“You want people’s attention,” McCrory said. “This is not the time to cut back on advertising. ‘If we’re not aware of you, we’re not going to buy from you.’ You don’t have to go to extremes, but the same-old, same-old results in obsolescence.”
Businesses should revisit their finances and conduct an analysis. Take the last three years, he suggested, and compare it to other years and the industry standards.
“Revisit your break-even point,” McCrory said.
He added that businesses should develop a marketing plan. “Who’s your customer? What’s your market area? How many potential customers are there in the market area? Do advertising strategies align with the targets? What percent of the market are you seeking? What are your pricing strategies/objectives?”
Marketing should use proven industrial media, including newspapers and radio, but it also should adapt to social media, including a Web site, Twitter, LinkedIn, Facebook and even Craig’s List and eBay.
“Think short-term promotions for now,” McCrory urged. “Reconnect with your customers. Provide the very best product/service and price. And market, market, market. Make lots of noise. It’s not all about number because innovation and value count, too.”
McCrory can be reached at 260-481-0500 or at
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The Web site is www.isbdc.org.
E-mail staff writer TJ Hemlinger at
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Last Updated ( Tuesday, March 24 2009 )
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