Summertime – A Different Approach

Knowing where your company falls into this set of three groups is a major part of the battle. But the big question remains—once you know, what can you do about it?

If you are thriving, you can consider (albeit warily) acquiring the businesses or the assets of your market challengers—taking advantage of this time to consolidate your market, eliminate some competition, and add some better personnel and technology. This is a great time to get bargain basement prices for companies or assets in distress situations.   Mike Oleksak    2009

If you are surviving, you have made it through the last eighteen months but have lost significant ground since the economic trouble started. As survivors, you may emerge on the other end of all this stronger for the experience, but likely scarred, fatigued and weaker financially. However, survivors can position themselves for growth on the back end by implementing better systems and processes, hiring smarter employees, and developing a tighter market focus. If you are smart, you can come out of this in 2010 ready for sustainable growth again.

If you are dying, you might have been undercapitalized, had out-of-favor products, or were not able to withstand brutal competition from overseas or big box retailers. These bankruptcies and closings hurt employment, but they are an inevitable phase of capitalism. You should take a hard look at what it would take to recapitalize or sell. Who would want what you have left? Can you get guidance from a workout consultant without having your creditors foist them upon you? Can you step back and consider these alternatives objectively?

News reports talk about the U.S. economy “hitting a bottom.” If you are an advisor to business owners, now is the time to help your clients identify if they are thriving, surviving or dying—it is critically important for the work you do and the results you can reasonably hope to achieve on their behalf. If you are a business owner, you should not waste any time in determining what category you’re in, what that means for your company, and how you should proceed from here.