RECESSION-PROOFING YOUR BUSINESS:Exponential Growth in Difficult Times

Brad Dawson, LTV Dynamics

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Learning Objectives

1. Participants will learn the 10 key activities that can immediately increase their revenues and decrease their costs.

2. Participants will learn how to immediately implement these 10 key activities in their business – ensuring continued business growth even in a down economy.

3. Participants will focus less on “downsizing” their business (a normal reaction in a recession) and be equipped to not only survive a recessionary period but, actually, flourish.

So, when will the recession end?

#1 - Offering Relevance

For some firms, over 60% of their product and service offerings no

longer make sense for their industry.

#1 - Offering Relevance

Are your customers able to espouse your value proposition or are you in the commodity zone where low

price “wins”?

#1 - Offering Relevance

Can you predict the future for your industry? What is currently “missing” from a customer

perspective?

Recessionary Tidbit #1

The goal for 2009 is to be in the right position when the recession ends – presumably sometime in 2010

One objective is to amass a diverse set of relevant offerings – an activity that may best be

accomplished through the development of strong and trusted partnerships

#2 - Asset Usability

Business can reduce their operating costs by a minimum

of 20% without negatively affecting productive output

#2 - Asset Usability

Take a critical look at your workforce – which employees do you want to

bank on your next business cycle?

#2 - Asset Usability

Don’t jettison assets without understanding their real worth.

Recessionary Tidbit #2

Beyond reducing your operational costs, you may need to reduce your profit expectations.

Realize another objective for 2009 is to retain as many customers as possible – even if it means

reducing/discounting your fees

#3 - A Time to Buy

Recessions are great times to buy under-valued assets.

#3 - A Time to Buy

Selling off “distressed” businesses has become a cottage industry. Allows

your business to grow at a low cost.

#3 - A Time to Buy

Look at horizontal and vertical opportunities.

Recessionary Tidbit #3

Chaos breed opportunity – and, oh boy, do we have economic chaos

Beyond acquiring under-valued businesses, you may want to explore introducing service offerings that you

have pondered during your career.

Nothing ventured, nothing gained!

#4 - Non-Core DistractionsDuring recessions owners spend a lot of time “trying to optimize”

finance, administration, sales and marketing (FASM).

#4 - Non-Core Distractions

Look to outsource your non-core functions – not overhaul them.

Focus on core activities to establish real competitive differentiation.

Recessionary Tidbit #4

In a normal economy the cost of sales and marketing should constitute approximately 10-15% of your

gross revenue – that number is increasing to nearly 40% for some businesses

Realize that how you are viewed by your potential customers carries more weight today than ever

before.

#5 - Reinvest In Your S-T Future

Use the “downtime” to upgrade the skills of your workforce

#5 - Reinvest In Your S-T Future

Keeping employees abreast of industry changes increases their value. It also takes the employees minds off the recession and settles their fears of losing their jobs.

Recessionary Tidbit #5

Associations such as ACIL provide strong, low-cost programmatic options for your employees.

Even establishing a monthly “bag lunch” webinar session provides your employees with an opportunity to gain

additional knowledge at a relatively low cost.

#6 - Re-Define Your Customer20% of your customers generate 80% of your revenue.

What is your revenue per customer metric?

#6 - Re-Define Your Customer

Replicate your large customers. Small customers waste too much time!

Recessionary Tidbit #6

Your other objective for 2009 is to build your customer base – again, getting positioned for 2010

Look to potential partnerships with those organizations that have your “ideal” customers. Are there ways for you to work together – providing a larger set of offerings

to the end-customer?

#7 - The Three “Ps” of Marketing

Leverage your marketing dollars by aggressively using

your association and networking

memberships.

#7 - The Three “Ps” of Marketing

Adhere to three “Ps” of marketing: participate, publish, present. You must be perceived as an industry expert to be credible to your customers.

Recessionary Tidbit #7

Make sure the members of your associations and networking groups are legitimate customer targets

for you.

Realize that you may not be able to market to them until 2010 – but this approach allows to keep building

your potential customer base

#8 - Resolve Need vs. Want

A “need” is an item that increases productivity and profits immediately and has an established return on investment.

#8 - Resolve Need vs. Want

A “want” often replaces an existing item that has grown out of favor due to style or age. Recessions have a way of moving the demarcation line for need and want.

Recessionary Tidbit #8

Realize that some of your previous “wants” may have changed in the past couple of years transitioning

them to “needs”

A good example is the smart-phone that allows you to operate more effectively away from your office

(mail, internet access, GPS, international communication)

#9 - Take Your Vacation Now

When the recession ends you won’t have time!

Recessionary Tidbit #9

With the devaluation of several worldwide currencies, now might be a good time to visit a foreign country.

It also helps you realize that the recession is global – not just in your backyard!

#10 - The Recession Will EndResearch

RewardReinvest

Review

The Business Cycle Release

Recessionary Tidbit #10

As every industry has their own cycle, you may want to focus on diversified industries that “smooth” out

cycle peaks and valleys

Large scale box stores and lawyers are doing well during the recession – presumably infrastructure firms will

do well early in the Obama administration

Thank You!

Contact Information:

Brad Dawson

LTV Dynamics

703-753-2886

BLDawson@LTVdynamics.com