A Message from Chamber President Dennis Goldstrand:

Business can succeed despite tough economic times

APRIL 2009  - We are currently in the throes of one of the most dramatic economic recessions we will ever see if our lifetimes. It is challenging times for all of us. However, the reality is that the vast majority of businesses survive, and many thrive, during these times. Will we be one of them? This is not to minimize the severity of our economic situation. But most of us seem to survive and emerge from downturns stronger and better positioned.

What are the lessons we can learn from those businesses that seem to thrive? What they avoid is retreating into their inner world to wait until the recovery occurs. Like all of us, they do reevaluate staffing and unnecessary expenses that do not contribute to profit. But they go beyond to study what products and services are most profitable and which ones consume inordinate amount of resources without contributing adequate profit margins. And are there products and services that may be in more demand during these difficult times for our clients and customers, such as ones that provide more perceived value? Are there opportunities for new and improved services and products that the market has not discovered, that would be welcome by your customers?

There are opportunities for all of us.  First, we need to start with our existing clients and customers. Are we visiting them often or do we assume they are in a position not to purchase from us? Businesses and families still have to purchase products and services! They may be more selective and cautious in their purchases, but they are still buying. And if we are not contacting our clients and customers regularly, will they wonder how we are doing and if we will be around next year?

If they are wondering this, when it comes time for them to purchase a service or product that requires long-term service, will they call us, or will they call your competitor that is regularly calling on them now? So, get out there and visit your loyal, long time clients and customers. Let them know you will be there for them for many years, share with them new products and services and show them how you can accommodate their purchase. And thank them for their past business!

And, do not forget your other customer — your employees. Surviving requires leadership and keeping your employees motivated and focused. Remember, your staff is watching you for signs for what direction the business is taking. Stay positive, involved, be visible and communicate regularly with them.

Another opportunity is new business with new clients and customers. As your competitors retreat and eliminate marketing staff, advertising and promotion, you can capture new business in this environment. Also, some of your competitors will go out of business (mainly non-Chamber members) or close local operations. Continue to visit those prospects you have been calling on.

Their regular supplier may have left the industry or not had the staff to service them. Be visible. Ask them questions about their needs and how you can earn their business; then ask for the order. Even if you do not do business with them now, this increasing familiarity with you will pay dividends later when you finally secure that first order and have a new client for life. Remember, it takes about eight impressions for someone to do business with you. So start seeing them now. And, you just might have the time!

The most successful businesses also maintain or increase their marketing, sales and promotion budget. They see this as a time not to lower the one expenditure that brings in revenue. You can cut your expenses only so far, but if you are not bringing in sales or billings to cover it — well.

Last month, we had our State of the City event with our new mayor, Ann Johnston, giving her first address. She confronted the massive city budget deficit and the difficult decisions that will have to be made by the council and city manager’s office to balance the budget and secure our future. She recognizes that much of the long-term solution to the city’s financial health is a strong vibrant business environment. The Chamber, its members and the business community at large is and will always be the engine that supports city services.

There is nothing that any municipality can provide in place of business. Businesses, by far, are the major purchasers of products and services, the major employer of its citizens and pay more than their share of taxes and assessments. Without it, the city could not provide essential services. For that reason, the city council has to continue to be mindful of its actions so as not to restrict or impede a receptive business environment for current and future business employers.

The mayor also called upon all citizens to volunteer their time to community projects and activities. This is a worthy cause, not only now with the financial strain that community organizations are experiencing, but for our lifetimes. There are few other groups that have answered the call over the years than our business leaders. I know so many of them that have continuously served on boards and committees, providing critical energy and ideas, along with financial support.  As busy and committed as these people are, they find time to serve, because they know the importance of giving back and the value they bring in making this a better community. I salute you all!

When we reconvene again at the 2010 State of the City, we will all rejoice in that we have not only persevered, but our businesses have emerged stronger for all time.