I’m talking to some clients recently who are getting discouraged about the economy.  Or perhaps cynical is a better descriptor.  Often they look to their trusty consultant to verify their glass-half-empty perspective.  And though I don’t consider myself to be an optimist, when it comes to doing business in 2008, I’m still a glass-half-full kind of guy.  Here’s why. 

Despite higher energy prices, we still live and work in an economy where differentiation of one’s product/service offering provides a competitive advantage in the marketplace.  Businesses that struggle either fail to differentiate their product in a way that their customers care about, or they fail to adequately communicate that difference through a media that reaches their target audience.  Respond to the challenges of the economy by modifying your product or your message in a way that uniquely satisfies the passions of your customers. 

Because of a sluggish stock market, buyers are seeking exceptional value.  Value is the combination of your products usefulness and its price.  This economy give you the opportunity to create a strong value proposition for your customers that gives them more bang for their buck.  Respond to the challenge of a sluggish stock market by providing unusual value to each current customer and give them incentives to share that story with prospective customers.  Delighted customers are always your best (and least expensive) sales force. 

Rising costs of inputs to your product/service provide a powerful enticement to evaluate company processes to find new efficiencies to stabilize total product costs.  An efficient operation will continue to pay dividends to your company long after the economic cycle returns to bullish.  Respond to the challenge of rising input costs by forming teams to improve operational efficiencies without sacrificing quality.  This will increase profits now and lay the foundation for economic profits in the future. 

Whenever one sector of an economy is in a downturn, another finds the conditions to be favorable.  There are many companies and individuals who are flourishing right now.  Your job is to evaluate these potential new markets or market segments and develop a product or message that positions your company well within these thriving markets or segments.  Respond to this challenge by considering new product development, utilizing excess manufacturing capacity to innovate specific offerings for these prosperous segments. 

Inflationary pressures have driven the cost of borrowing down.  Now may well be the right time to invest in capital improvements that can reduce long-term manufacturing costs.  Though financial institutions have tightened their lending criteria to offset losses in the sub-prime mortgage sector, these institutions are highly motivated to find new customers who are a good bet to succeed.  That could be you.  Respond to the credit challenge by considering capital investments that will reduce labor costs, open up new markets, or lay a foundation to absorb the demand created by competitors who fail. 

Bottom line pressures tend to cause businesses to put their focus on the financial statements to the exclusion of customer relationships.  Let your competitors make that mistake while you redouble your efforts to deepen lines of communication with your employees and customers.  Building a strong brand and strong brand loyalty starts with your own people – if they don’t believe your product claims with their whole hearts, your customers won’t either.  Respond to the bottom-line challenge by assuring your employees and customers that you’re committed to long-term relationships.  Find out what both employees and customers care about and create an atmosphere of collaboration and camaraderie to deliver the value they require.  No matter what the economy, never forget that EVERYTHING in life is about RELATIONSHIPS. 

Perspective is everything.  Where some people see only obstacles others see incredible opportunity.  Which do you see? 

Consider that your free refill for that half empty glass.

Paraclete Consulting specializes in helping companies evaluate existing products and develop new products.   Hit "Contact Us" to get a FREE consultation.