1461: Five Mistakes Companies Make During Downturns by Christine Comaford of Smart Tribes Institute

[00:00:00] [SPEAKER_00]: This is Optimal Work Daily. Five Mistakes Companies Make During Downturns by Christine Comaford of SmartTribesInstitute.com

[00:00:11] [SPEAKER_00]: Here's the reality. Companies make mistakes all the time. In an economic downturn, however, avoiding the big slip-ups becomes all the more crucial.

[00:00:20] [SPEAKER_00]: Small business owners tend to react impulsively at times, and while this may earn them some points for courage,

[00:00:26] [SPEAKER_00]: in a rough economy, they should definitely take the long view and pace themselves.

[00:00:31] [SPEAKER_00]: To get funded, stay funded, and even stretch your day-to-day cash flow, you'll need to avoid some key mistakes.

[00:00:38] [SPEAKER_00]: If you've made them already, it's time for a strong course correction.

[00:00:42] [SPEAKER_00]: Here are my top five blunders to absolutely avoid during a downturn.

[00:00:47] [SPEAKER_00]: Number 1. Hasty Hiring

[00:00:49] [SPEAKER_00]: Result? Bad hires who are costly and time consuming.

[00:00:53] [SPEAKER_00]: It's better to try out new staff members as independent contractors first.

[00:00:58] [SPEAKER_00]: Then, after you're confident that they work well with your team and within your organization, bring them on as permanent hires.

[00:01:05] [SPEAKER_00]: When you're overwhelmed and overworked, it's easy to make hiring mistakes.

[00:01:10] [SPEAKER_00]: That's why relying on contractors is a great policy.

[00:01:13] [SPEAKER_00]: Check out sites like AskSunday.com for administrative help.

[00:01:17] [SPEAKER_00]: They have great buzz and a wide variety of hourly rates to work with, in some cases $12 per hour.

[00:01:24] [SPEAKER_00]: For marketing, bookkeeping, and other help, try out Workaholics4Hire.com or similar marketplaces.

[00:01:30] [SPEAKER_00]: And don't make the mistake of staffing up fully only to discover that your business operates in waves.

[00:01:36] [SPEAKER_00]: Have a lean team and hire extra hands for the heavier times.

[00:01:40] [SPEAKER_00]: Remember, try out your team members before making them permanent.

[00:01:44] [SPEAKER_00]: Number 2. Expenses Before Revenue

[00:01:47] [SPEAKER_00]: Result? Financial pressure and personally funding your business.

[00:01:52] [SPEAKER_00]: It's definitely better to live below your means and grow more slowly.

[00:01:56] [SPEAKER_00]: A compelling example of this common mistake is a clothing retailer who recently contacted me,

[00:02:01] [SPEAKER_00]: desperate for a quick $200,000 loan.

[00:02:04] [SPEAKER_00]: She had never built up the credit rating for her 15-year-old business.

[00:02:07] [SPEAKER_00]: She had simply been too busy spotting the latest fashion trends and in turn,

[00:02:12] [SPEAKER_00]: buying inventory on her personal credit cards.

[00:02:15] [SPEAKER_00]: Sure, she had racked up zillions of frequent flyer miles,

[00:02:18] [SPEAKER_00]: but her company wasn't a least bit credit worthy.

[00:02:21] [SPEAKER_00]: Ultimately, when she hit tough economic times,

[00:02:24] [SPEAKER_00]: she had to scramble for a personal loan.

[00:02:26] [SPEAKER_00]: To top it off, her personal credit score had been damaged significantly

[00:02:30] [SPEAKER_00]: over just a few missed payments on her six-digit balance.

[00:02:33] [SPEAKER_00]: Ouch!

[00:02:34] [SPEAKER_00]: Number 3. Skipping the Six Month Plan

[00:02:38] [SPEAKER_00]: Result? Strategy of the Second and Very Little Accomplished

[00:02:42] [SPEAKER_00]: It's better to map out the next six months,

[00:02:45] [SPEAKER_00]: and if a new project comes up,

[00:02:47] [SPEAKER_00]: swap it out with one of equal complexity that is already on your plan.

[00:02:51] [SPEAKER_00]: Entrepreneurs can be excessive idea generators.

[00:02:54] [SPEAKER_00]: I know I am.

[00:02:55] [SPEAKER_00]: With a six-month plan, you will have mapped out the projects for the immediate foreseeable future

[00:02:59] [SPEAKER_00]: and can skillfully avoid manic distractions with poor results.

[00:03:04] [SPEAKER_00]: Consider the perils of one company with the painful strategy of the second plan.

[00:03:09] [SPEAKER_00]: Each time its mercurial CEO returned from a conference, he'd have a new idea.

[00:03:14] [SPEAKER_00]: Were they good ones? Often.

[00:03:16] [SPEAKER_00]: But his already stretched staff had no spare energy.

[00:03:19] [SPEAKER_00]: Since they had not learned to communicate clearly with one another,

[00:03:22] [SPEAKER_00]: they would take on the project.

[00:03:24] [SPEAKER_00]: But all sorts of key tasks would, of course, get dropped or delayed,

[00:03:28] [SPEAKER_00]: and no one was happy.

[00:03:30] [SPEAKER_00]: Ultimately, you need a gatekeeper for the six-month plan if you want your company to run efficiently.

[00:03:34] [SPEAKER_00]: This is someone who will ensure the new projects are either scheduled for later

[00:03:38] [SPEAKER_00]: or replace existing projects of equal size.

[00:03:41] [SPEAKER_00]: Someone who will constantly see the big picture, tackle the small details,

[00:03:45] [SPEAKER_00]: and facilitate real results every step of the way.

[00:03:49] [SPEAKER_00]: By the way, once the CEO in question put a six-month plan in place,

[00:03:52] [SPEAKER_00]: his staff was happier, fewer tasks were dropped, and the revenue came rolling in.

[00:03:58] [SPEAKER_00]: Number 4. Pointless Partnerships

[00:04:00] [SPEAKER_00]: Result? Time-consuming meetings and planning sessions that do not result in revenue.

[00:04:06] [SPEAKER_00]: It is much better to only take on partners for a specific purpose,

[00:04:10] [SPEAKER_00]: one that can be monetized within the next 90 days.

[00:04:14] [SPEAKER_00]: Partnerships are not about press releases.

[00:04:16] [SPEAKER_00]: They're about massive marketing benefits that will lead to revenue

[00:04:19] [SPEAKER_00]: or direct revenue generation right now.

[00:04:22] [SPEAKER_00]: I can't emphasize the now part enough.

[00:04:25] [SPEAKER_00]: You can waste a tremendous amount of time on irrelevant partnerships

[00:04:29] [SPEAKER_00]: that may have a long-term glorious future, but for right now,

[00:04:33] [SPEAKER_00]: they simply are not worth your time and energy.

[00:04:36] [SPEAKER_00]: In difficult times, stay focused.

[00:04:39] [SPEAKER_00]: Partner for benefits that you can expect within 90 days or less.

[00:04:42] [SPEAKER_00]: Push the longer term deals off your plate.

[00:04:45] [SPEAKER_00]: You'll get to them later in more stable times.

[00:04:48] [SPEAKER_00]: Number 5. Chasing All Sales Leads

[00:04:51] [SPEAKER_00]: Result? Wasting time on prospects who will not become clients.

[00:04:56] [SPEAKER_00]: A CEO complained recently that she had chased a key account for four months.

[00:05:00] [SPEAKER_00]: Four months! She finally lost hope that they would ever become a client.

[00:05:05] [SPEAKER_00]: When asked if she had a disqualification process,

[00:05:07] [SPEAKER_00]: she clearly was confused.

[00:05:09] [SPEAKER_00]: Here's the net-net. You only want to spend time with real prospects.

[00:05:14] [SPEAKER_00]: Create a disqualification process so you can quickly remove

[00:05:18] [SPEAKER_00]: contacts from your sales pipeline that will most likely never buy

[00:05:21] [SPEAKER_00]: your product or service.

[00:05:23] [SPEAKER_00]: In tough economic times, especially,

[00:05:25] [SPEAKER_00]: you must focus your energies on productive revenue streams.

[00:05:29] [SPEAKER_00]: Finally, hang in there and stay hopeful.

[00:05:32] [SPEAKER_00]: We have all made mistakes in business.

[00:05:34] [SPEAKER_00]: You will definitely get better at rebounding

[00:05:35] [SPEAKER_00]: and reducing the amount of time before a lucrative exit.

[00:05:39] [SPEAKER_00]: The point is to course-correct constantly,

[00:05:41] [SPEAKER_00]: spot a mistake and take action to correct it.

[00:05:44] [SPEAKER_00]: I'd like to hear about mistakes you're grappling with

[00:05:46] [SPEAKER_00]: or biggies I didn't mention.

[00:05:52] [SPEAKER_00]: You just listened to the post titled

[00:05:54] [SPEAKER_00]: Five Mistakes Companies Make During Down Turns

[00:05:57] [SPEAKER_00]: by Christine Comaford of SmartTribesInstitute.com

[00:06:01] [SPEAKER_00]: This show is sponsored by BetterHelp.

[00:06:05] [SPEAKER_00]: We're all marveled at how quickly kids learn

[00:06:07] [SPEAKER_00]: and that sense of wonderment they have while doing it.

[00:06:10] [SPEAKER_00]: But as adults, sometimes we lose that curiosity.

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[00:07:03] [SPEAKER_00]: And thanks so much to Christine

[00:07:05] [SPEAKER_00]: for letting us share her work.

[00:07:07] [SPEAKER_00]: She is sought after for providing proven strategies

[00:07:09] [SPEAKER_00]: to shift executive behavior

[00:07:11] [SPEAKER_00]: to create more positive outcomes

[00:07:13] [SPEAKER_00]: and roll and align teams in times of change

[00:07:16] [SPEAKER_00]: and profoundly increase sales,

[00:07:19] [SPEAKER_00]: product offerings and company value.

[00:07:21] [SPEAKER_00]: Her coaching, consulting and strategies

[00:07:23] [SPEAKER_00]: have created hundreds of billions of dollars

[00:07:25] [SPEAKER_00]: in new revenue and company value for her clients.

[00:07:28] [SPEAKER_00]: The potent neuroscience techniques she teaches

[00:07:31] [SPEAKER_00]: are easy to learn and immediately applicable

[00:07:33] [SPEAKER_00]: to help leaders see into their blind spots,

[00:07:36] [SPEAKER_00]: expand their vision

[00:07:37] [SPEAKER_00]: and more effectively influence outcomes.

[00:07:40] [SPEAKER_00]: She's been thanked by Bill Clinton

[00:07:42] [SPEAKER_00]: and Bill Gates called her Super High Bandwidth

[00:07:45] [SPEAKER_00]: and you can come by SmartTribesInstitute.com

[00:07:48] [SPEAKER_00]: for a lot more.

[00:07:50] [SPEAKER_00]: And that's going to do it for today.

[00:07:52] [SPEAKER_00]: I thank you as always for being here

[00:07:53] [SPEAKER_00]: and for clicking subscribe.

[00:07:55] [SPEAKER_00]: And I'll see you right back here tomorrow

[00:07:56] [SPEAKER_00]: where your optimal life awaits.