Lis Calandrino

Okay, so now you've heard the recession is over. I don't know what exactly what it means, jobs are scarce, credit card lenders are raising interest rates and banks aren't lending money to small businesses. I wonder what it would look like if the recession wasn't over? 

Maybe more of the same?

As the Newsweek article puts it: "When the economists proclaim a recession is over, they're celebrating a technicality: they mean economic output has stopped contracting. And while that's good news, you might wait awhile before adding Judy Garland's rendition of Happy Days are Here Again to your iPod."

What's the point? It doesn't matter whether the recession is over or not. What really matter is when will your customers be back and why aren't they buying from you? Most likely they're not buying from you or anyone else.  If you can acknowledge this, you"re on the road to recovery. If you're still in the unbelieving stage, your business is in trouble. There are still businesses out there that believe if they continue doing the same things the same way the customers will come. There are lots of businesses out there that believe it will all go back to the way it was. To believe this is to believe in fairies and warlocks.

Einstein's definition of success was doing the same thing over and over again and expecting a different result.

Many of the companies that exhibit these behaviors are companies that have been successful. They believe that success still awaits them no matter what they do. Unfortunately they are wrong. You've probably heard the expression, "what got you here will not get you there." Clinging to the past and what worked before will not move you forward. What will get you there there will be your ability to change, not your ability to cling to the past.

I speak to business owners every day; I admire the ones who call and say, "I don't know about that kind of stuff, meaning the Internet, but I hear it's where my customers are congregating."  These are the ones who will probably survive and grow to be different companies. They will be lean, mean and accountable.

I spoke with a business owner the other day who apologetically said,"When this is over, we won't look like the same company." I asked why he was upset and he said because his company was always looked upon as leaders and now they would have to  downsize. Let's face it, there are fewer customers in the marketplace and probably more businesses than ever who are chasing these customers. As a country we have never been here before and there's no blueprint for success. Smart business owners will have the guts to look the problems in the eye and say, it's time to move on. The bottom line is the bottom line and that's  pretty much it. I know that doesn't sound revolutionary, but neither does "we're waiting around for them to change" or "I'm waiting for the customer to come back." 

By the way, in case you didn't know it, customers haven't been on vacation. Customers are just apprehensive.  

So how do you change? Change is never easy; in fact, the more you know the less you think you have to change. While times are good many business owners stood waiting for their "payoff." Unfortunately it never really came. In fact, many of those who sold their businesses had to scurry back to reclaim what was left of their failing business. Why did this happen? Most of them sold the business to someone who was like the: running the business the same way. The new owner didn't think about changing either. 

One of the things that happens to owners is what Marshall Goldsmith calls the Paradox of Success: "I have succeeded, I can succeed, I will succeed and I choose to succeed." It reminds me of another powerful expression: "veni, vidi, vici" – I came, I saw, I conquered. Why doesn't it work? Because it's not that simple. What is happening in the marketplace requires a new mindset and can't be conquered by old strategies such as dropping prices or selling cheaper merchandisers. It's too late to try and do it faster and better. It's time to do it differently.

There are some things that might help but ultimately the answers to this problem have not been written.

• It's time to seriously start talking to your customers. Ask them what do they think about the economy, how has the economy changed their behavior, are they spending the way they did prior to the recession? Everyone I know — even those with good jobs — is apprehensive about spending money. Ask what they're doing to enjoy their lives, probably staying home. This is a good reason to make some changes to the interior.
• Ask your staff what' they're feeling: if they're apprehensive you can be sure this is influencing their interactions with the customers. It's called "misery loves company" syndrome. It feels good but neither party actually benefits. Coming up with solutions works, suffering together doesn't work.
• If new customers are scarce, call your old customers. Offer them an incentive to make a purchase or invite them in for a party. We can all use a little fun.
• Hold a networking party and invite neighboring businesses and past customers. I recently spoke at a networking party in New York City where all types of business people came to make new friends.
• Meet with other businesses and find out what they're dong to get new customers. Partner with them and hold an event; any kind of event, just bring in customers.

This is the season to be jolly and raise money for your favorite charity; collect toys, coats for kids and adopt a needy family. When your customer gets ready to shop you want to be noted for something other than the lowest price. If you don't do something, you'll be out of sight — and out of mind. 

Remember that one?

Sure, everyone knows that if your business is going to survive, it will have to change. That doesn’t mean you have to like it. In fact, maybe whining about it is good for you.Everyone has to change except you and me. Why — because we’re right and we know what’s good for everyone else. Why won’t they get on board instead of getting in my way.

Well, maybe it’s not them. Could it be you?

How you view and treat people has a lot to do with the outcome of the situation.  Just because people don’t agree with you doesn’t mean they won’t change. Maybe they don’t see or understand why the change is coming now. The best thing you can do is adjust your mindset and attempt to understand the people and the situation around you.

People not agreeing with you? Maybe that's a good thing — a way to help you "tweak" necessary changes in your thinking. Even the most difficult of naysayers may have valuable insight into the situation. Before you start firing those for not agreeing with you, consider what is going on around you.

On a personal level, I was involved with a project that was destined to fail. The product was just too different for the market — and way ahead of its time. The person who was spearheading the project had very strong opinions and was well-liked and respected. It was obvious to me that much of the agreement was due to the person's position rather than the marketability of the product. As the focus group leader I picked up underlying feelings that were not positive to the project. When I related this information my comments were considered negative and "in the way" of moving forward. Rather than question the information from the focus groups or listen to those closest to the project, the person  pushed the project through and a great deal of money was lost by the investors.

Success in anything is often due to "timing and economic climate" — it is not always advantageous to be first. Being first can be costly and not always a competitive advantage. In this case, waiting a year or two to introduce the project would have made a huge difference.  For interesting insights on "timing," pick up a copy of Malcolm Gladwell’s wonderful book, Outliers.

Make sure everyone is told about the changes and how they will be affected. Change is complicated. Often times those who initiate the changes forget that many of those most affected by the changes haven't had enough time to think about what the changes will mean to them or don't even really understand anything about the changes. Consider the part-time worker who just vaguely hears about the change or the person who is the farthest from the decision maker. "There are few things that can shatter a person's view of the world like the discovery that all that was thought to be true no longer holds," says Wayne Hurlbert, consultant out of Winnipeg, Canada. To find out that everything one knows is wrong can be devastating news for many people. It doesn't have to be that way.

Explain how the change is in line with the business mission. Change, if presented right, just means the next step in your business plan. It's important to explain to everyone how the changes will affect not only employees but their customers. Remember, we are all here to serve the customers. If it's the next step for the customer it's the next step for us.

Listen to those around you. Often time owners don't listen to those closest to the customers. It's not unusual for owners to purchase products or attend trade shows without any of their sales staff. What you're seeing as resistance to change may be just the people around you voicing valuable opinions. For a clear picture, your feedback loop needs to be open, not closed. As I recall from history, the court jester was often asked his opinion because his ideas were always "out of the box."

Welcome challenging ideas from your employees. Maybe your employees aren't being stubborn; maybe those thoughts which appear to be challenges to your ideas will actually lead to new and better solutions. Remember those closest to the  problems have an insight that is much different than the vision from 35,000 feet.

• Business World Blog
• Change Management

We are privileged to be able to listen to what’s making history this morning — way before the newspapers get the information. We can follow it on Facebook, Twitter, or even by calling  877-my AMFIX. I decided to call AM/FIX and was asked whether the traditional face-to-face meeting was obsolete. My two cents: Of course we have to meet! Seems like a wasted question. President Obama can't make the same connection to Prime Minister Gordon Brown or the Queen via Facebook now can he?

I followed the Obamas trip to England and was interested in what news came out of it. Did you know that England issued a limited edition President Obama coin available in silver or gold? This is entrepreneurial and an interesting way to stimulate the economy.

Certainly there are people who have created major problems relating to our economy. However, we are all responsible for moving forward. In England, Obama stated that the rest of the world has always relied on the US for relief and to help everyone, but his statement was also that the U.S. has to take care of its own house first. Everyone will have to assume responsibility for this global problem if it’s going to get solved swiftly.

Let’s not forget Michelle Obama. She was dressed simply and not wearing a sleeveless dress so we didn't have to hear about her well-toned arms. But I also noticed that her blouse was a little low cut and this will no doubt come under scrutiny. Michelle represents the 21st century woman, in my view: Well-educated and super successful in her own right. She is popular around the world and let’s not forget an  African American woman. We have yet to see her effect on the world. She appears to be able to listen and is obviously interested in collecting new ideas.

This was the first official meeting between the U.S. and Britain as the British Prime Minister Brown and President Obama meet to discuss their concerns prior to the G-20 Summit meeting.

So should we spend, save, invest? No clear answers, but we will get through this and we must realize there will be a future. Brown was more specific than Obama about what needs to happen: Basically, straighten up the banks and financial institutions, invest in fiscal stimulus contributions, cut interest rates and restructure the financial system. I think by now we all know what’s wrong, let’s just keep moving forward!

Obama was much less clear, speaking of taking action and pushing back, being cooperative and support economic growth, support trade and not forget the human side of our problem. Cooperation, cooperation,cooperation. I hope we have people that want to join us in this effort.

Obama's buzz words:

• Kinship of ideas
• Lead and listen
• Corporation between powers and work together
• Global plan for economic recovery. Everyone needs to raise the bar and put some type of regulations for banks in our global economy.

The biggy sems to be to create a stable economy by reducing interest rates and stop the loss of jobs and businesses. Unlike the 1930s, we have many social programs in place which will help get us through this.

So what’s a business to do? Remember, eventually people will buy cars and houses, though they'll be a bit more cautious.

• Invest in the future while keeping your business stable. If you need to downsize to survive, then do it.
• Consider what will be the best possible decisions that you can make and then make them.
• Focusing on fear will not help you make decisions; fear only immobilizes people.

This is the time to act and look forward—the future is never in the rear view mirror. Looking back doesn’t help, this is 2009. And we have a lot of resources available to resolve the problems.

Oh, and if you keep up with the goings on of the Obamas, you may know that they recently got a Portuguese water dog, which the kids named Bo. I wrote him a note on his Facebook page giving him a piece of my mind that the dog wasn't a rescue dog. Was that out of line?

Resources:

• news.bbc.co.uk/
• www.usatoday.com
• www.brookings.edu/opinions
• www.huffingtonpost.com
• news.yahoo.com/
• www.g20.org/
• Pictures: courtesy of the White House 

"Timing has a lot to do with the outcome of the rain dance." – Cowboy proverb

Yesterday I was speaking with my friend Tom Ramsey about the economy, and asked him what he thought about the current state of affairs. His response was memorable: “Status quo is Latin for 'the mess we’re in.' Nothing good will happen unless something or someone changes — for the better.”

Tom is not only my friend with a marvelous sense of humor, but comes with the best credentials.  He has an MBA from Georgia State, is currently Sr. Faculty and Curriculum Coordinator at De Vry University's Graduate Division, and has spent 12 years in the Georgia House of Representative and two years in the Georgia State Senate.

As far as I'm concerned, it’s almost like talking to the President himself! Sure, the president has a headache as a result of everything that's going on, but it’s not all his fault. Part of the problem seems to be that everyone wants things to go back to the way things were when things were good. “The big three,” you may know (and I’m not using capitals anymore for them), want bail out money so they can feel better, keep their lifestyles the same and basically pretend that they’re not in the dumpster.

Wouldn’t it be wonderful if we could have someone give us money too so we could turn back the clock to better times?

If anything is to be different with your businesses, you will have to bite the bullet, get focused and hire someone who thinks differently. It amazes me how often business owners hire someone who thinks like them. That reminds me of the old sentiment, “misery loves company." When times are good, why listen to anyone? We know it all, and why break it if it works?  When times are bad, a business might find out how really off the mark it is. Over the years, I have hired several coaches during both challenging times and good times. I always feel energized after meeting with them — my ideas get validated or questioned and I'm able to find some new options. In any event, I see that there's the possibility of change.

New Sign on the Door

The game around us is changing these days and the rules are changing. Things are not like they were. I might venture to say they might never be like that again but I’m reminded of when I wrote we would never see gasoline at $2.50 a gallon — and last week I saw it for $1.89! So who knows? 

If you’re losing money, the first thing to figure out is why. What has changed for you? Yes, the economy has changed, but more importantly have you been changing along with it?

I saw a TV ad the other day for Best Buy where the salesperson was talking about how they were located near a military base and they had special offers for military personnel and their families. The salesman also spoke about how proud he was of our military forces. Obviously, the opportunity was there and they grabbed it. 

Are you losing money? If so find out where the loss is coming from and stop it. Stopping it is different than hoping it will stop. It's the difference between being proactive and reactive.

A highly respected business owner told me recently he was losing business in one of his stores at the rate of x number of dollars a month. He said, “If this continues I will have to close the store next year. I’ve tried all kinds of things but it’s just not getting any better.” He was essentially asking me, what should I do?

I looked at him and said, why not just close the store?

He was somewhat taken back by my statement but I continued by saying, look at all the money you would save if you closed? Of course there were other issues involved – a building lease and a centralized warehouse. But this alternative created new opportunities that he hadn't considered – opportunities that could turn out to be more profitable than he though.

Social media is a geat way to change your business. And in this environment, it's critical. Do you know what customers are saying about you? Are you controlling what they say? Is blogging still out of your vocabulary? Check out Remarkablogger or Duct Tape Marketing. Both are great sources.

Are you so entrenched in who you should be, could be and want to be that you can’t see who or where you are? I think of a musician friend of mine who continues to talk about the success he had 10 years ago and how he wants the same thing. What may be missing in the equation is: what’s changed since then, and where can you go with it?

What many businesses need is to get hit with “a dose of reality.”  I’ve heard people respond to this by saying: you’re stealing my dream! My thoughts are, unless you are going to live in your dreams there are very few options there. I just picked up a copy of the December 2008 issue of Entrepreneur. There's plenty of information on trends that will help you with reality. It really is the best place for you and your business, as it provides you with the most options. Start reading, talking and tuning into your reality – it’s possible success is hiding right under your reality nose! Do whatever it takes. Invest in training programs that help with reality and change. Remember, in bad times, word of mouth is still your best bet. 

"Change alone is eternal, perpetual, immortal." – Arthur Schopenhauer

Additional Resources

• Bazaarblog – Ideas to help customers build your business

• Work911 – Business, Management and Personal Development Resource Center