After a long Summer hiatus, the Consultingwoodworker Blog is back.
Monday’s Wall Street Journal had a feature article on companies that will emerge from the recession as “winners”. Those profiled shared certain traits: The first was having their finances in order. Ford may be hurting like all the automakers, but because they had reformed their finances before the recession hit, they are emerging stronger and government bailout free. Having a plan and sticking to it during hard times was another indicator.
Innovation was another common factor. The times have changed, and I think for good. As the economy recovers, I do not believe things will return to the heady days of the past. Consumers are likely to be saving more, and demanding more quality spending instead of conspicuous consumption. Is your business model ready for this new reality? How can you make it so?
If you have survived the recession intact, there is good news for you: Historically, those companies left standing after a recession do very well the first year into the recovery. Pent up demand drives business, and there are fewer surviving players to meet the demand. The housing market will take some time to really recover, but as your customers feel better about the economy, there will be a lot of repair and remodeling business that had been put off.
Maintaining contact with your customer base is more critical now than ever before. You want to stay “top of mind” so that when they start shopping, your company is on their list. Be ready with information and suggestions. Keep them up to date on the latest products. Show them timeless design instead of the latest short-lived trend. Educate them about what makes your work better than the competition. Are you using better materials? More durable hardware? Your customers should know this. They should know this now. Today. You want, when they begin their search, to already have you in mind.
And this is the time to be innovating in your shop as well. Have you been putting off a new equipment purchase? This may be a good time. Interest rates are low, vendors are still dealing, and it will make you more efficient than your competitors.
So schedule some time in the next few weeks to review your market, marketing and production. If needed, bring in some outside help. Take the steps necessary to get your operation ready for the recovery. A rising tide lifts all boats. Make sure yours isn’t leaking.
