When I got to my high school, our baseball team was not very good. I confirmed with an upper classman who had been on the team before I got there and he assured me that they weren’t very good then either. As time went on, some students transferred from another local high school, some underclassman added value, and my class really started to gel and we became very good, qualifying and advancing in the county and state tournaments. However, whether the team was 4-16 or 16-6 and playing in the state playoffs, we continued to practice the same way. This goes to show that it was mainly the caliber of players that advanced the record of the team.
Much like the caliber of players that come and go through a high school sports program, the economy goes through its own peaks and valleys and so must you as a business owner to adjust to these economic changes. What may work during an economic boom may not work at a level like today so you must tweak different areas of your business:
- Advertise through different mediums
- Review your costs periodically and research group discounts through any professional associations
- Review your retirement plans to make sure you are using the most efficient one possible for both you and your employees
- Review and/or develop your succession plan based on the changing circumstances
- Review your product mix, making sure that all of your revenue doesn’t come from one product/service or one client/customer
The above doesn’t just apply to business owners but households as well. If you or your spouse works on commission, the sales may not be coming so easily; if you are dependent on a substantial year-end bonus, you may have seen that dwindle as well. Look for more efficent ways to trim household expenses – clipping coupons at the grocery store, cutting back on dinners out, etc. – or maybe find a source of supplemental income.