Dan Caruso, the CEO of Zayo and on the Board at NTG, writes a blog called Bear on Business, which has a post about what to do in today's economy. Here are some snippets:
- While no one knows how long or deep this downturn will be, there is a clearly appropriate strategy - prepare for the worst and seize the best opportunities when they come.
- For our customers, I am sure the impact will be broad and varied. .... We need to be responsive to these needs and vigilant on our exposure.
- Our success will be a function our ability to be nimble and responsive to the shifting environment we face.
- Only the Strong, Nimble, Focused, Creative, Disciplined and Driven Survive.
Shore Up Your Best Customers NOW! Stay in contact weekly. As Gitomer says, "What would you do if your top 3 clients left?"
Be flexible. And creative.
Cut costs where you can, but sell the profitable stuff first and foremost.
This is also a great time to look at what ALL of your true costs are to see if you ARE indeed making a profit. (Not, do I have money left over at the end of the month? But am I charging enough to insure a certain profit margin). Many of these calculations that I have seen ISPs do, often neglect to factor many of the line items on this list.
- Have you looked at how much credit cards are taking? Bad debt? Billing?
- The Cost of Sales (referral payments, salesperson costs including salary, benefits, expenses, lease, desk, phones, car allowance)
- Lease payments. If you lease phones or CPE, credit may tighten. Pay attention. Talk to your banker.
It's a good time to get out and network with businesses locally to help each other, to get new ideas, and to create some business opportunities. Here's a video lesson on Biz Schmoozing by Keith Ferrazzi.