Accelerating Growth in a Competitive Economy

In tough economic times the common approach is to hunker down, circle the wagons, cut costs and hope the recession doesn’t last long. Those that win in times like these are smart about expenses, but use this as an opportunity to set themselves apart with the actions they take.

Just one example: from 1980 to 1985, McGraw-Hill Research analyzed 600 companies and their marketing spending. They concluded that those firms that had maintained or increased their advertising during the recession in ‘81-’82 boasted an average sales growth of 275% over the next five years. But those that cut their advertising saw paltry sales growth of just 19% over the same period. The great news for us is: because digital marketing is SO much less expensive than traditional forms of marketing, we CAN continue to promote our companies in new and innovative ways in these tough times.

So what do we need to do to make growth happen in this competitive economy?

• Realize most barriers to growth are self-imposed. Ask yourself how long it has been since you have really challenged the way you do business. We all have to fight “business gravity” every day—the force that keeps us from rising to a new level. Factors of business gravity are: industry standards (where we strive to keep up with the competition and end up in “me-too-ness” instead of separating ourselves from the pack), habit (“we have always done it that way”), time (how much time do you as the leader of the company spend on where you are going instead of solving today’s problems?) or resource allocation (where we strangle new ideas with lack of resources because we are unwilling to redistribute the resources we already have in a significant way). Sometimes, we are our own worst enemies in growth. How many hours a day do you focus on operations vs. growth? The key is to challenge traditional thinking and, if you haven’t already, set up an advisory board or develop a strategic plan that inspires you to examine opportunities and addresses challenges from a new perspective.

• Growth opportunities arise from the market; the “sweet spot” for growth is where your capabilities intersect market opportunities. Unfortunately, no company is equally good at everything—and they shouldn’t be—they don’t have endless resources. Do your homework to discern market trends and be honest about your organization’s best capabilities (as defined by your customers, if possible). Identify growth opportunities where those two lists overlap. A manufacturer of food packaging components identified a trend toward niche markets. Given that they were small and nimble with a good debt position, they saw this as an opportunity to diversify into some of these smaller and emerging markets more quickly and profitably than others. Practice thinking like your customers—what do they need tomorrow and what do you do well—and develop solutions.