2011 Was a Tougher Year for the Owners of Midsized Companies and Recent Retirees than the News Media Portrayed

Deep down, we all know that broadcast and print media have some biases.  (No kidding.)  During election years, some media outlets are compelled to emphasize progress being made, jobs being created, and consumers spending more around the Holidays. Following recessions with particularly long periods of uncertainty (NOW), some reporters play the role of consumer advocate to help unwitting buyers beware of high profile crooks. While the US Congress and President Obama took different stands on raising the debt ceiling in 2011, the media focus seemed quite partisan.

So why am I reminding you about media bias?

In the midst of all of the political infighting and fussy stories about progress, the personal portfolios of owners of midsized companies and recent retirees took a disproportionate hit during the summer of 2011.  For many, 2011 was as bad as 2008. That fact got lost in the media coverage.  So if you lost a lot of money in 2011, you could be wondering if you were cheated somehow instead of feeling “normal.”

Imagine if your investment portfolio of $10 Mil dropped 30% in 2008 to $7 Mil and then it dropped another 30% in 2011 to under $5 Mil.  People in that position thought they could stop working and turn their family businesses over to the next generation but now feel compelled to continue to work to replace lost money. Folks who retired from corporate management positions after 30+ years now wonder if they can afford to keep the house at the lake. Instead of investing in real estate, businesses, new products, and nice vacations, these people are worried and frozen.  This has a direct impact on job creation.

I also mention media bias because many of the people who lost large sums of money in 2011 (maybe you) wonder if you did something wrong, have lost some trust in your advisors, and feel stranded.  That combination of emotions stifles economic recovery.

If my words resonate with you, give your financial planner a call. Get explanations.  Revisit your personal financial plan. Base your decisions on real information rather than just worry.

Isn’t it interesting that a strategist who helps companies grow is suggesting that you request an appointment with your personal fee only financial planner. Mental attitude in one arena impacts the other.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com  which  features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.  

 

Should You Assume That ALL of Your Customers are Uneasy?

A pattern has been surfacing recently from the interviews we conduct prior to on-site strategic working sessions for/with the clients of my growth planning/strategic advisory firm. We are hearing from our clients’ customers that they:

• want to be contacted BEFORE a question would even come up
• don’t like the expectation that they will do the traveling for appointments
• don’t want vendors to get defensive or take their questions too personally
• want more one-on-one interaction and more individualized services/products
• expect more understanding, compassion and empathy
• are not very interested in the vendor’s feelings, needs, personal life or goals
• need bright vendors but won’t tolerate arrogance

It’s no longer enough to say that your firm is responsive and brag that you return customer calls quickly. They don’t want to have to call you. They want and expect you (and me) to PREVENT their ignorance, concerns, and uneasy feelings.

This extended period of uncertainty following the recent recession has had an adverse impact on just about every market.  The obvious sectors include construction, real estate, banking, and wealth management firms.  But uncertainty has been unsettling to customers in other industries.  We feel it. Even our most ambitious clients now want to review the details of our research findings, request multiple presentations of our recommendations, and need repeated fact based reassurance.  Some would like to demand guaranteed revenue growth and net profit levels.

If your business is related in ANY manner to the shifts in the economy, stock market, political winds, etc…take a fresh look at the tone and frequency of your communication with clients/customers.    

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business. VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com

 

Persevere, Answer Questions, Do Demonstrations, Create Payment Plans…and Reassure

The extended period of uncertainty following the recent recession continues to raise the cost of doing business.  These days, an experienced sales person expects to explain the value to more people, provide free demonstrations, answer lots of questions, create payment plans, and reassure decision makers.  You might find that reassuring people is becoming the most important step.  Cash is tight. Jobs are at risk.  Few people are willing to take a chance or be an early adopter because they can’t afford to look like a fool.

As a few of my recent blog entries have shared, I have been working on a new economic development initiative that will help midsized companies rebound. When folks see the statistics, hear the approach, and review the business model, anyone who interacts with midsized businesses quickly sees the value and gets excited that it could help the economy. It’s one of those win/win/win models where:

• The clients pay a little to gain a lot
• The service providers make a difference, earn some money, and benefit from great marketing
• The sponsors invest a little and are applauded as visionary leaders

But even something like this has difficulty attracting sponsors.  WHY?

In some corporations, their own bureaucracies are so difficult that a regional President has very little chance to shift priorities for even $15,000. In other corporations, the decision has been made about which nonprofit organizations will receive their support.  Even if/when too little return on investment is resulting from those decisions; it is too difficult to consider a change.  Other corporations say they like innovation, but sponsor only traditional approaches.

The concept I/we have been working on isn’t a traditional 501C3 or 501C6 entity. I have recruited over 50 service providers and we are determined to launch this initiative in 2012. Like other sales people these days, I have to persevere, answer questions, do demonstrations, create payment plans, and reassure. Interestingly, involving the legal and accounting firms in the sponsorship calls is needed to help reassure corporate executives.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on-line talk show at http://www.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.           

 

Survival Versus Thrival

George’s business has three stores.  The oldest one makes money but is still a bit too dependent on one key salesperson.  The second one hasn’t hit its sales or profit goals in a long while. And the third, a relatively new location, seems like it has great potential but hasn’t yet reached the inflection point.

If George has a survival mentality, he will close the second store, try to relocate one or two sales people back to the first store and give the salespeople in the newest store a deadline for hitting their goals.   George and a very small business might survive, but will he have something of value to sell when he wants to retire?  Will he be able to attract experienced sales people? Will his business deserve exciting marketing campaigns? Could he attract the best vendors and utilize premium pricing? Would the key salesperson in the oldest store continue to produce?

A thrival mentality asks different questions. Does the key salesperson represent the old way of doing business and should the company actually focus more on the newer sales people? Should something like incentives or a marketing campaign be added to the third store to lift it more quickly over breakeven? Is there an exciting theme or approach that could differentiate George’s business from competitors? If so, should George be looking for additional locations or considering franchising his business?

Thriving during uncertain economies involves thinking much bigger than your company is today. It actually requires bolder marketing messages because so many people are so preoccupied and distracted they will not see or hear your message right away. Growth during recessions is often easier when people like franchisees or investors share the risk.

If things don’t work out for “Survival George,” he will be on his own. If things start to go badly for “Thrival George,” bankers, franchisees, employees, vendors, and even local economic development agencies will be invested in the company and care about its future.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over two dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across four recessions.  Her midsized BtoB service, technology, and distribution clients get on–and then stay on–the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^thyear hosting a weekly peer-to-peer-to-peer on line program at www.Business.VoiceAmerica.comand www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or atAldonna@AMBLER.com.

 

Reclaim Your Innovation Process

The economy slows and the typical midsized business slashes a few line items in their budgets including marketing, training, recruitment, and product development (R&D).  That can temporarily ease strained cash flow, but it isn’t a formula for surviving and thriving during a recession.

The most resilient companies seem to find ways to weave the innovation process into their cultures. One way to attract and retain productive employees during tough times is for them to know that their employer is still interested in market trends, customer needs, new technology, and better ways to do things.  Plus, it pays to remember that the most innovative product improvements aren’t necessarily the most expensive.

The innovation process includes five stages:

• Investigation
• Preparation
• Incubation
• Verification
• Application

Some jobs can become tedious if the employee isn’t also invited to participate in a little research.  The second generation of a family owned business often doesn’t want to take over the business if they haven’t been invited to do research and lead innovation. What are competitors doing? What do customers really think? Which new technologies could speed up the process? Is investigation an ongoing part of your employees’ jobs?

Periodic meetings to review what has been discovered can surface patterns.  When you see which ideas have the most potential, preparation starts.  What is the idea worth? Who should be involved? How do you protect profitability as this project gets underway? What other resources might you need to analyze and design a viable idea?

You get the idea.  Verification is one of the most important steps, especially during a recession. Most of us can’t afford to make too many expensive mistakes.  In a classic article “5 Myths of Innovation” in MIT SLOAN MANGEMENT REVIEW, Julian Birkinshaw reminds not to believe “IF WE BUILD IT THEY WILL COME.” We have all heard stories about computer programmers who have generated millions of lines of code to software products that too few people wanted to buy. Customers feel important when they are asked to try your new products and services.  It pays to do a BETA test to verify if your proposed approach makes sense and will work.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^thyear hosting a weekly peer-to-peer-to-peer on line program at www.Business.VoiceAmerica.comand www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or atAldonna@AMBLER.com

 

If You Decide to Take a Chance and Develop a Truly Innovative Product

A lingering recession is actually a very good time to introduce exciting new products.  Continuing to provide the same old thing just doesn’t do it. But a product that truly represents “value add”, advanced technology, or ease of use garners the attention of even the most cash tight customers.

But this may be the first real innovation your well established midsized company has done in a long long time. If so, it pays to focus your attention on a small group of your most desirable customers (the sweet spot). Beta tests can be done for people you truly care about and the product can be tweaked until it is really ready to launch.  A broader launch is much easier and more successful if you can confidently brag about the premiere customers who chose to embrace your new product.  Frankly, most customers are followers and won’t take a chance on a new product until leaders endorse it. And the percentage of followers increases during tight economic times.

Breakeven and ROI can be difficult to project if product development isn’t an ongoing part of your daily lives, so it pays to learn from companies with a track record of successful product launches. They immediately measure the time, effort, and cost involved in developing a new product and winning first wave early adopter premiere customers.  And then they measure the time, effort, and costs associated with attracting their followers.

If it’s been a long time since you launched a truly innovative product, you may not like the numbers that are generated when you measure these things but you do need to know. It’s important to have some faith in your capacity to improve.  With information, each subsequent product launch can be more cost efficient.   The ROI on product launches becomes easier to calculate with each innovation.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line program at www.Business.VoiceAmerica. com and www.growthstrategistradioshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

 

Everyone Is “In Play”

During a recent discussion with a prospective corporate sponsor, a very influential CEO shared that “these days, you can assume that EVERYONE is in play.”  This guy would know.

Wow, what a profound observation!

Look around. Industry leaders who seemed firmly entrenched in their roles are becoming association Presidents. Previously very independent companies are quietly seeking affiliation with larger organizations.  Regional CPA firms are launching new divisions by acquiring boutique consulting firms.  Leaders of some family-owned businesses who lost their retirement nest egg in 2008 and can no longer count on the next generation to want to take over are now contacting business brokers, considering mergers, and even weighing dissolution.  Former football players are becoming Congressmen.

Everything being dynamic…in motion…is a symptom of this most recent recession’s extended period of uncertainty.  But as confusing as these changes may seem, it is a very good sign.  It means many people are tired of waiting.  They are no longer hoping the government will magically bail them out.  They are no longer defaulting to “just work harder” as the only possible strategy. They are no longer holding onto a pipe dream.  These folks are getting on with it!  YEAH!

Not all of the business model changes, consolidations, acquisitions, new divisions, and career shifts will work.  But it is SO much better than staying stuck, waiting for someone else to do something, losing too much money, or becoming depressed.

There are several important implications to this shift in behavior…including how it impacts your sales force.  Prospects may not be accepting your sales person’s calls and your buying cycle may be stretching.  When the reasons for delays sound the same but your sales people can tell that they aren’t being told everything, they might be right.  The prospective customers can’t tell your sales people that their companies may be sold.  They can’t admit that their CEO is leaving the industry.  They can’t reveal that they are in negotiations to become a division of a larger entity.

If you wonder if your prospects can’t be candid with your salespeople, it may be time for more executive-to-executive conversations. Or at least change your sales approach.  Some firms (like outbound call centers that set real sales appointments for their customers) provide important services that can keep customers afloat during periods of uncertainty or flux.  This may be the time to become more direct with stalling prospects rather than just wait for them to later tell you why they couldn’t talk more candidly.                                   

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line radio program at www.Business.VoiceAmerica.com and www.growthstrategistradioshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses will be emphasized in 2011. Ambler can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Lessons Learned From Growing Family Dominated Community Banks

It is challenging to lead a privately held midsized business these days.  We are all impacted by this extended period of post recession period uncertainty. Even if you are excited and centered, your customers aren’t. Large corporations continue to hang onto their cash, which impacts their midsized vendors. Growth financing remains difficult to obtain.

Can you imagine how challenging it would be to lead a community bank these days? It doesn’t matter that they weren’t the cause of the implosion of the financial industry.  They are still required to retain much higher reserves because huge financial institutions were so highly leveraged. The word “bank” has become a four letter word.  The entire industry is under increased scrutiny.  Already heavily regulated, they are now subject to even more regulation.

What are the successful community banks doing to grow despite today’s challenges?

First, they have learned that if there was ever a time for the leadership team to move beyond squabbling (especially family), it is now.  The leadership of a community bank must be able to easily obtain candid input from each functional area and be able to quickly make decisions without reverting to autocratic behavior. They simply don’t have time to wait for arguments between the generations.

Second, today’s challenges are cueing the first generation leaders to free themselves from day-to-day operations to focus on external dynamics.  The CEOs of community banks must lead their boards of directors, stay informed about money markets, keep eyes/ears open for possible investors, and always know where things are headed with the regulators.  Recessions and complex challenges often help stubborn succession problems get unstuck.

Third, they have learned that trust and integrity are excellent differentiators. Customers have become skeptical and must be careful how they spend their money.  Instead of laying low and waiting for the economy to improve, the successful community banks are stepping up to serve the customers who have lost faith in the larger institutions.

Fourth, the growing community banks recognize that the needs and expectations of busy customers keep escalating.  So they are investing in increased access, automation, and expanded options.  Despite their size, community banks must provide a suite of services and products that are comparable to the huge competitors that caused the problems in the first place.

Fifth, the growing community banks are embracing comprehensive cultural change programs to ratchet up their marketing, sales, and service process, systems, and attitudes.  Take a look at the success rate of The Emmerich Group’s community bank clientele.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line radio program at www.Business.VoiceAmerica.com and www.growthstrategistradioshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses will be emphasized in 2011. Ambler can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Just Expect That You’ll Need 2 or 3 Conversations Before Someone Will Be Able to Hear You

As my blog readers know by now, I am in the process of launching my 8^th business. Plus, since the 1970s, I’ve helped over 800 clients launch new products, expand their businesses, and/or spin off new enterprises. This is my 4^th recession.  In my opinion, this one has a much longer period of uncertainty plus trust has been eroded.

Medical professionals are finding that they must explain, re-explain, and then re-explain their diagnoses, treatment recommendations, and prognoses.  CPAs must walk their clients through the tax filing a few times.  Teachers must repeat lessons. Speakers present concepts through bullet points, stories, analogy, interaction, humor, AND visual reinforcement.

People aren’t “dumber,” but we sure are more preoccupied.

Business people are not immune to this pattern. To pull up the economy and our businesses, we each need to propose new ideas to people who are preoccupied, tired, frustrated, agitated, overworked, and distrustful.  If your idea is worthy and would really benefit the person or company, expect to dig deep to find some compassion.  Don’t even expect a positive response from your first conversation no matter how great your idea is.  The person probably could not hear you.  And if they did, they won’t remember the conversation.  This 8^th business launch requires presentation after presentation after presentation.

It just is.

Let’s just all cut one another a break and expect to need a few conversations.  Even the brightest people I know are missing cues, can’t retain information like before, and deserve some help to comprehend what we are suggesting.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.   Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line radio program at www.Business.VoiceAmerica.com and www.growthstrategistradioshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses will be emphasized in 2011. Ambler can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Is Your Midsized Company Daring Your Best Employees to Quit, Become Entrepreneurs, and Do What You are Too Afraid to Do?

These days, major corporations are holding onto large cash reserves because executives do not trust the government or the financial industry.  The underlying causes of this lingering recession haven’t been resolved, so you really can’t blame them.   But corporate sector resistance to buy, launch, and hire is clearly protracting the recession.  Midsized companies are directly impacted because they [you] have smaller reserves, often rely on corporate accounts to set the pace of their growth or stagnation, and are dependent on banks.  

What will change the pattern and release the strangle hold on the economy?

The traditional answer is that we should look to small businesses.  Independent entrepreneurs will have creative ideas.  They’ll risk their mortgages and children’s tuitions. Small business is the” economic engine”, right?

My hope is that leaders of midsized companies will make their [your] move, step up, introduce new ideas, and convince corporate strategic partners to work with them.  That makes more sense, doesn’t it?

Why should we wait for bright ambitious people to resign from our midsized companies to become solo entrepreneurs and initiate change?  Why should we lose their expertise, ideas, energy?  Midsized companies have the needed infrastructure, reputation, and systems.  There is a base from which to drive change, innovate, and move forward. Why should change always have to start from scratch?  It’s so inefficient!

Look at your employees.  Who HAD ideas? Who may become impatient waiting for you? Who is probably be contacted by search firms even during this tight economy? Who could become an equity player and help propose big ideas to your corporate accounts? Who would prompt you to kick yourself when you learn that he/she has left your business to become an entrepreneur?