This is my first post of 2009 - so here’s wishing you all a very happy new year!
As every new year brings in the hope of a fresh start - it is in order that we begin with some business resolutions/ ideas to get our clocks ticking:
1. Conserve cash - I know it’s an old hat but it’s importance can’t be overstated. Has someone also spoken to you about the ill-effects of deflation lately?
2. Do NOT stop investing - now this might sound counter-intuitive especially in context of the point above - but “less money” if invested “rightly” could achieve far more (more in point # 5 below)
3. Revisit your marketing strategy on a PRIORITY - which basically means refine/ rework the story you are taking to market - we are operating in a far different world (read world-view) than what it was a few months back
4. “Frugal” is in fashion again…cut your costs but with one CLEAR exception - any costs incurred that result in disproportionate gains in incremental revenues are good costs…
5. Make the test of “disproportionate increase in incremental revenues” an investment philosophy - pass everything through this lens: R&D, marketing, customer service, and even HR?
6. Do cut on your training budget but NOT on the training. Switch to other low cost options such as ASP/SaaS style elearning or online training.
7. If you MUST lay-off people to get your cost structure in line with the contracting demand - start at the very TOP, you can achieve a lot in one fell swoop here!
8. Start a PURPLE COW (remarkable new products for the very edges of the market) FUND - one sure fire way to hold back your stars and potentially land up with at least one block-buster by the time the market turns.
9. Invite your stars and odd-balls, entrepreneur types currently hidden in the woodwork of your company to concieve, create and launch remarkable new products for the enthusiasts/ early adopters at the edges of the market.
10. Depending on what your context is - well thought out new stories/ products around Health, Wealth and Kids would always do well - recession or not. Period.
11. Better still…launch something cool for women - but please insist on a woman running the business for you!
12. Get Tom Peters or a Seth Godin to address your executive/ sales teams! There is no better time than this to have these guys ignite new energy/ fire in your top teams - but if you can’t manage it, then at the very least - buy their books and have your teams read them!!
13. For starters - read (re-read if you’ve already read) Tom’s Reimagine and Purple Cow by Seth Godin. These are extraordinary books and I guarantee you that they will change your perspective on business and perhaps life.
14. If you are in India or any other emerging market - focus your energies (read launch some purple cows)at the Bottom of the Pyramid. Countries like India are still banking on a growth of over 7% this fiscal purely on the strength of BOP!
15. And lastly, worst might not be over yet - so pace yourself if you are an early stage firm burning huge pile of cash every month…the cash registers may not start ringing in a hurry!
And Yes we Can! Have a great year!!
