KEY POINTS:
American business guru Tom Peters inspires business leaders to pull through the recession.
Is it all doom and gloom, or can Kiwi businesspeople take heart that something good can come of this recession?
It's up to small and medium-sized business to focus on the basics and export their intellectual capital globally. New Zealand has great strengths in the area of intellectual property. A heavy focus on adding value (rather than offering commoditised services, which can be outsourced to countries such as India or China) will also reap dividends. New Zealand is perfectly placed to play a leadership role in this trend.
What kinds of businesses can benefit from current conditions?
Apart from the obvious categories, such as insolvency experts, and specialist lawyers and accountants, dual-income families continue to drive the need for essential home services and support. Any service is valuable and should do well when it involves helping the family cope, whether it be helping to maintain the home, educate the children or put food on the table. And it's worth noting that some high-end businesses that command top dollar can still thrive if they know their customers well. A core rule of business is know who you're selling to. This applies now more than ever.
What's the best advice for businesses not in one of those growth categories?
There is no magic cure-all, but there is a checklist of things that businesses can do to ensure that they are delivering on their core customers' needs. One is to stand out from the competition and get more share of the spending from an existing client base, as competitors step aside under pressure, sell or become insolvent. If your client base has reduced by 20 per cent, by what percentage can you grow retained client business through your relationship of trust and your track record? Almost all the best techniques involve sticking to your core product or service and delivering value for money. Getting an informal board of trusted advisers or a business coach can help turn things around.
What are some of the basics that companies can implement?
Looking after your customers, going the extra mile and taking care of your staff. Prioritising the high-value projects over the lesser ones is also critical. Make the tough decisions on staff levels, and secure credit based on your investor or banking relationships. It's not enough to have a plan. It's important to create action based on your plan every day. This is not a time to get fancy. Sometimes we all need a (painful) reminder of how the little things can make a huge difference to the bottom line.
What is the value of business coaching when companies are not flush with cash?
While sending you and your staff on courses and business degrees can benefit your company, this often doesn't boost the bottom line immediately. Coaching can, but there are good coaches and bad coaches. The best coaches have a small client base and a deep relationship with each client. Only then can the company benefit from the discipline that having a business coach can bring. After all, it's about implementation and getting results.
Tom Peters is hosting a workshop with businesspeople on February 19. Visit http://my.results.com/tom
