Economic downturn brings new challenges

It has been an interesting summer here in the Inland Northwest. As I near my 10th anniversary in this area, I am still trying to understand the summertime effect that “going to the lake” has on businesses in this region.

What is this “effect” I refer to? The one where as days warm up, people seem to work fewer hours and take longer weekends forcing “doing business on a Friday” to the brink of being almost pointless. One thing it is, it is a good day to get caught up on all those e-mails and half-finished projects. But sometimes I just want a response to a phone call or e-mail. Oh well, I guess I simply need to adapt to the “effect” and hope the summer of ’09 brings me closer to that goal.

This year, considering the slowing economy, summer has been a challenge for many business people, employees and nonprofits. Positions vacated are not being filled at many government offices, as well as private businesses. That means we all get to “do more with less” and frankly, there comes a time when you cannot fool yourself that you are achieving that in any sane manner.

Here are a few red flag signals the BBB is seeing in business:

•Phone calls take longer to return, if returned at all.

•Scheduling repairs or estimates is entertaining and not at all precise; nobody shows up.

•The vacation of one staff person takes its toll on a company or department already trimmed to the bone.

•Priority-setting is critical, and sometimes you just have to say no.

Two of the first things to go when too much is piled on the plate are quality and attention to detail. There is simply no time to take care in product or service delivery, and that is when problems begin. It is the little things ignored that grow into big irritations and make people complain to the BBB or take their business elsewhere.

How odd that when times get tough, we back off on the things that have the potential to make us the most successful. The problem here is that the slip-ups of poor service, missed appointments and unreturned phone calls are the things that linger in the minds of clients both potential and current. That potential customer is not going to call you back.

There is a better way to do “more with less” than by simply delivering less:

•If you cannot deliver, return a call or make an appointment and just say so.

•Don’t make excuses, just be honest.

•Take a cold hard look at things you really do not need to be doing.

•Outsource anything you possibly can to your CPA, mailing service and technology experts.

The majority of people are kind and understanding; they just need a bit of information communicated to them so they know where they stand. If you stop letting people involved know what is happening, imaginations run wild and they will begin jumping to conclusions. Don’t let them fill in the blanks with assumptions.

Over the years, I have managed through recessions, downturns and booms. In the world of BBB, when times are tough, our demand for services goes up while financial support declines. Interesting challenges, but that is just reality in BBB land.

Another constant is the rhetoric from businesspeople who tell me they can’t afford to hire someone to take care of customers. But when we point out how expensive and time-consuming it is to take care of what might now be a big problem, it is only then that they understand how their thinking has been short-sighted.

Lessons to learn before you cut back too much:

•Advertising and training are often the first things to realistically cut. They are your future, so trim with care.

•Before making a decision to make a change, look at the effect from your customers’ perspective.

•Changes that continue to erode the satisfaction index of your clients are just pushing them to your competitor.

•Ask front-line staff for ideas; they are often more aware than you are of what the customer wants.

No matter what we call this slowdown, it too shall pass. There are some industries doing just fine; some are thriving, and others are facing real challenges and will never be the same.

I do not want to sound like a Pollyanna, but your attitude determines how you and your business will handle these times. Just make sure you are not making decisions today that will have a challenging impact on your future.

And return a phone call or two; you might be surprised what you hear.